Germany revamps anti-money laundering strategy ahead of 2028 review
Germany is overhauling its approach to tackling money laundering after years of criticism. Finance Minister Lars Klingbeil has scrapped plans for a new federal agency and will instead strengthen existing bodies. The changes come as the country prepares for a key international review in 2028-2029. The previous government had proposed creating a Federal Office for Combating Financial Crime. However, the legislation never passed, leaving a gap in enforcement. Now, Klingbeil has chosen a different path.
The Financial Intelligence Unit (FIU) will gain greater independence under the new plan. It will also set up a national centre to train staff in detecting money laundering and terrorist financing. This move aims to improve expertise across agencies.
At the same time, the customs service will take on a bigger role. Its powers will expand to investigate major cross-border money laundering cases. The goal is to disrupt illegal financial flows linked to terrorism and weapons trafficking.
Germany has faced repeated warnings from global watchdogs over weak anti-money laundering controls. As a major financial hub, the country remains vulnerable to illicit cash flows. These reforms are designed to address those concerns before the next evaluation by the Financial Action Task Force. The changes mark a shift from creating new institutions to reinforcing current ones. The FIU’s new independence and the customs service’s expanded powers will form the core of Germany’s strategy. Officials hope these steps will close loopholes before the 2028-2029 assessment.
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