Summary

The Money Laundering Act (“Geldwäschereigesetz”) establishes uniform standards within the framework of efforts to combat money laundering and terrorism finance, as well as due diligence in respect of financial transactions in the non-banking sector.

On the one hand, the chosen system of self regulation has the advantage of making use of industry expertise and an awareness of key issues in respect of sector-specific requirements. This ensures that it enjoys widespread recognition. On the other hand, the established system of self regulation is vulnerable to accusations that its sanctions are not wholly convincing.