Money laundering and terrorist financing

The aim of theMoney Laundering Act (Geldwäschegesetz - GwG) is to prevent money laundering and terrorist financing. The Money Laundering Act imposes special obligations on certain companies and persons (obliged entities) to make their business relationships and business activities transparent. In this way, the obliged entities are to prevent transactions with a criminal background and contribute to their detection.

The City of Wolfsburg is the competent supervisory authority for the implementation of the Money Laundering Act in the so-called non-financial sector in accordance with Section 50 (9) GwG. In the non-financial sector, obliged entities pursuant to Section 2 (1) GwG include commercial goods traders, real estate agents, service providers for companies and trust assets or trustees if they provide certain services and do not belong to the professional groups of Section 2 (1) numbers 10 - 12 GwG, non-chambered legal advisors and registered persons pursuant to Section 10 of the Legal Services Act, insofar as they plan and carry out the transactions specified in Section 2 (1) GwG for clients, financial companies and insurance intermediaries.

The City of Wolfsburg, as the competent supervisory authority pursuant to Section 50 (9) GwG, must ensure that the obligations under money laundering law are implemented and complied with in the areas subject to supervision. To this end, it provides obliged entities with regularly updated interpretation and application guidelines for the implementation of due diligence obligations and internal security measures in accordance with the statutory provisions for the prevention of money laundering and terrorist financing. The Anti-Money Laundering Act also stipulates that the supervisory authority monitors compliance with the obligations and, if necessary, takes appropriate and necessary measures and orders to ensure compliance with the requirements set out in the AMLA and the legal ordinances issued on the basis of the AMLA and punishes violations with fines. The supervisory authority must publish final measures and incontestable decisions imposing fines for violations of the AMLA or ordinances issued on the basis of the AMLA on its website after informing the addressee.

Pursuant to sections 43 and 44 of the AMLA, supervisory authorities and obliged entities are required to report suspected cases of money laundering and/or terrorist financing to the Financial Transaction Investigation Unit without delay.