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 in various sectors, the legal framework and enforcement mechanisms in place have led to successful prosecutions, fostering a culture of compliance among companies.

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

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 actively encourages foreign investment, treating domestic and foreign investors equally, while maintaining a transparent regulatory framework. However, recent years have seen increased scrutiny of foreign acquisitions in critical sectors, particularly from non-European entities, reflecting a commitment to national security.