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, increasing penalties for bribery and enhancing transparency in political donations. While corruption cases have been reported, particularly in public administration and the business sector, Germany's robust legal framework and enforcement efforts have led to successful prosecutions, fostering a culture of compliance among companies.

Germany, as Europe's largest economy, is a leading destination for foreign direct investment (FDI), characterized by 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 in exports and foreign investment, while also implementing national security measures to screen foreign acquisitions 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 maintains an open economy with no discrimination against foreign firms, and it has seen significant U.S. investment, particularly in sectors like manufacturing and technology. However, recent years have witnessed a decline in FDI in certain sectors, prompting the government to enhance national security screening for foreign acquisitions in critical industries.