Germany Country Summary
Sanctions
Low Concern
FATF AML Deficient List
Low Concern
Terrorism
Medium Concern
Corruption
Low Concern
US State ML Assessment
High Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Low Concern
Offshore Finance Center
Low Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
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.
Sanctions
There are no international sanctions currently in force against this country
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 75 |
| World Bank: Control of Corruption Percentile Rank | 94 |
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 state prosecutors handle corruption investigations, awareness has grown due to high-profile cases, prompting companies to bolster compliance measures.
Economy
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. The United States ranks as the third-largest source of FDI in Germany, with significant investments in sectors such as manufacturing and technology. Despite recent declines in certain sectors like chemicals, major U.S. companies continue to announce substantial investments, reflecting Germany's attractiveness for foreign investors.
Germany is a highly attractive destination for foreign direct investment (FDI), characterized by a stable legal environment, reliable infrastructure, and a skilled workforce. The U.S. is the leading source of non-European FDI, with significant investments in sectors such as manufacturing, chemicals, and information technology. However, foreign investors must navigate a complex regulatory landscape, including national security screenings for acquisitions in critical sectors.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings