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. While corruption cases have been reported across various sectors, the legal framework and enforcement mechanisms in place have led to successful prosecutions, raising awareness and prompting companies to improve their compliance practices.

Germany, as Europe's largest economy, is a top destination for foreign direct investment (FDI), characterized by a stable legal environment, reliable infrastructure, and a highly skilled workforce. The U.S. is a significant source of non-European FDI, with key sectors including manufacturing and information technology, although recent trends show a decline in FDI in the chemical sector. Despite complex legal and regulatory systems, Germany's economy remains open and competitive, routinely ranking among the top countries for exports and foreign investment.

Germany is a highly attractive destination for foreign direct investment (FDI), characterized by a stable legal environment, reliable infrastructure, and a skilled workforce. The country has a transparent regulatory system that treats foreign and domestic investors equally, although recent national security measures have introduced screening for foreign acquisitions in critical sectors. U.S. investment is significant, with key sectors including manufacturing, chemicals, and information technology, while the German government actively encourages foreign investment through various incentives.