Largely unnoticed by the mass media, a politically sensitive provision was added to the German Money Laundering Act in February as part of the implementation of the EU Directive on Anti-Money Laundering and Combating the Financing of Terrorism.
The Money Laundering Act in Germany requires companies and professional groups in the financial sector—such as banks, tax advisors, real estate agents, and, under certain circumstances, notaries and attorneys—to exercise special vigilance and report suspicious financial transactions. These reports must be submitted electronically to the Financial Intelligence Unit (FIU), which automatically records and analyzes them.
So far, so good. Another new element introduced—and this is where it becomes politically relevant—is the definition of “politically exposed persons.” In this category of personae—spelled out explicitly—all are now effectively subject to reporting requirements for financial transactions, and will be automatically recorded in the future, as will members of the governing bodies of political parties. This category includes: heads of state and government, ministers, members of the European Commission, deputy ministers and state secretaries, members of parliament and members of comparable legislative bodies, members of supreme courts, constitutional courts, or other high courts against whose decisions no further appeal is generally possible; members of the governing bodies of courts of auditors; members of the governing bodies of central banks; ambassadors, chargés d’affaires, and defense attachés; members of the administrative, management, and supervisory bodies of state-owned enterprises; as well as directors, deputy directors, members of the governing body, or other heads with comparable functions in an intergovernmental, international, or European organization.
