FATF status

Germany is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Germany was undertaken in 2023. According to that Evaluation, Germany was deemed Compliant for 17 and Largely Compliant for 20 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 4 of the Effectiveness Compliance ratings.

Germany ranks 9th in Transparency International's 2023 Corruption Perceptions Index, with U.S. firms not viewing corruption as a barrier to investment. The country has strengthened its anti-corruption laws over the past two decades, increasing penalties for bribery and enhancing transparency in political donations and public contracts. Although corruption cases have been reported in various sectors, Germany's robust legal framework and enforcement efforts have led to successful prosecutions, fostering a culture of compliance among businesses.

Germany, as Europe's largest economy, is a prime destination for foreign direct investment (FDI), benefiting from a stable legal environment, reliable infrastructure, and a highly skilled workforce. In 2022, U.S. FDI in Germany reached $190.237 billion, with significant investments in sectors such as manufacturing and information technology. The country maintains an open economy, ranking highly for exports and FDI, while also implementing national security measures to screen foreign investments in critical sectors.

Germany is a leading destination for foreign direct investment (FDI), characterized by a stable legal environment, reliable infrastructure, and a highly skilled workforce. The country actively encourages foreign investment, treating foreign and domestic investors equally, while maintaining a transparent regulatory framework. Recent significant investments from U.S. companies highlight Germany's attractiveness, despite some challenges such as complex legal systems and national security screening for acquisitions in critical sectors.