Anti money Laundering &
Terrorist Financing

For banks, financial institutions and crypto exchanges, it is essential to implement measures and processes which Money laundering prevent As regulated in the 5th FM-GWG, a coordination body is to be established at the Federal Ministry of Finance to develop measures and strategies to prevent money laundering & terrorist financing.

The aforementioned institutions include the following areas vis-à-vis the customer:

1. Establishing the identity of the customer and verifying the identity on the basis of documents, data or information obtained from a credible and independent source, including electronic means for establishing identity and relevant trust services in accordance with Regulation (EU) No. 910/2014 and other secure means of identification at a distance or by electronic means in accordance with par. 4;
2. Establishing the identity of the beneficial owner and taking reasonable steps to verify its identity so that obligated parties are satisfied to know who the beneficial owner is; in the case of legal entities, trusts, corporations, foundations and similar legal arrangements, this includes taking reasonable steps to understand the ownership and control structure of the customer. If the determined beneficial owner is a member of the top management pursuant to § 2 fig. 1 lit. b WiEReG, obliged entities shall take the necessary reasonable measures to verify the identity of natural persons belonging to the top management and shall keep records of the measures taken and of any difficulties encountered during the verification process. An appropriate measure is the inspection of the register of beneficial owners in accordance with Section 11 WiEReG.
3. Obtaining and verifying information about the source of funds used; such information may include, but is not limited to, the professional or business activities, income or business results, or general financial circumstances of the client and its beneficial owners;
4. Obtaining and verifying information about the source of funds used; such information may include, but is not limited to, the professional or business activities, income or business results, or general financial circumstances of the client and its beneficial owners;
5. Establishment and verification of the identity of the settlor and the trustee in accordance with para. 3;
6. Continuous monitoring of the business relationship, including a review of transactions executed during the course of the business relationship to ensure that they are consistent with the obligated party’s knowledge of the customer, its business activities and risk profile, including, if necessary, the source of funds;
7. Periodically verify the existence of and update all information, data and documents required by this federal law.
8. The identity of any person stating that he/she intends to act on behalf of the customer (authorized natural person) shall be established and verified in accordance with item 1. The power of representation shall be verified in an appropriate manner. The customer shall immediately notify us of any changes in the power of representation during the course of the business relationship.

Through the implementation of our Crypto-Compliance Service, we advise and support banks and crypto exchanges in a targeted manner in the implementation of compliance measures and in adherence to the applicable compliance guidelines in connection with crypto transactions. Through our “Crypto Risk Assessment“, we establish proofs of funds and assess the risk for such financial institutions.