Despite new federal plans to combat money laundering, the policy faces challenges. The problem: the skimming of clan assets. It is unclear what the countries will do next.
Berlin – The new Federal Office to Combat Financial Crime (BBF) was actually supposed to start in April. For this purpose, our own staff should be recruited and the employees of the previous anti-money laundering unit FIU should be integrated into the BBF. Specifically, criminal investigations and the coordination of money laundering supervision are to be brought together in the BBF. Due to delays within the federal government, the office is unlikely to be able to start work until July. The challenge: Stricter laws have been relaxed, creating scope for clan crime.
Money laundering: Are Christian Lindner's plans effective enough?
The plans for the new BBF authority were approved by Federal Finance Minister Christian Lindner (FDP). He advocates merging tasks at the federal level. According to its own statements, the Federal Ministry of Finance is carrying out a fundamental restructuring of the fight against financial crime. The establishment of this office brings together all three areas of anti-money laundering – analysis, investigation and supervision – under the umbrella of the BBF for the first time.
NRW Finance Minister Marcus Optendrenk (CDU) says that the plans are not based on sufficient effort. There is an urgent need to do more about it. In an interview with
Handelsblatt,
he emphasized
the urgency of his request: “I urgently appeal to the Federal Finance and Justice Ministers not to deny law enforcement investigators the urgently needed weapon of effective asset confiscation.”
Authorities could confiscate the proceeds of crime directly through asset confiscation. Optendrenk emphasized that these funds are urgently needed to deprive serious criminals of financial support and to support investigators in their operations.
100 million euros are to be laundered every year: money laundering paradise Germany?
Apparently international controllers have repeatedly expressed criticism of Germany's fight against money laundering. It is estimated that around 100 billion euros are laundered in Germany every year. Because of this, the Federal Republic is often referred to as a “money laundering paradise”.
The establishment of a new authority is intended to pool forces in order to track down large international cases of money laundering. The original plan was for this authority to begin its work in April. However, it is now assumed that this will not happen until July 1st of this year at the earliest, as the adoption of the relevant law has been delayed.
NRW Finance Minister calls for stricter asset confiscation laws
North Rhine-Westphalia is pushing for further tightening up, especially in the area of asset recovery. NRW Minister Optendrenk explains: “Experience has shown that members of criminal clans in particular are far more impressed when their luxury car is suddenly gone than another entry in their criminal record.”
According to Optendrenk, this measure was included in the original draft law for the new federal authority. The authority should be given an investigation center for asset concealment with expanded powers. Assets should therefore be able to be frozen before criminal proceedings are initiated to prevent suspects from taking them to safety. Concrete evidence should be enough to initiate an investigation.
Criticism from the countries: Clan members can hide private assets too easily
The federal government's draft law, which is currently being discussed in parliament, no longer contains the regulation for the protection of private assets, allegedly due to resistance from the Federal Ministry of Justice. Optendrenk supports the protection of private assets, but calls for more action against criminal clans that exploit the German tax and welfare state.
According to Optendrenk, the current regulations on asset confiscation are too cumbersome and lengthy, meaning criminals have enough time to hide their assets before investigators can strike. Bavaria's Finance Minister Albert Füracker apparently also criticizes the creation of a new federal authority and instead advocates for clear responsibilities within the existing federal authorities.
“I fear that with another mammoth authority, work processes, coordination regarding responsibilities and bureaucracy will become more complex rather than simplified.” A regulation and clear responsibilities within the authority would be more efficient, Füracker told
Handelsblatt
. “I therefore doubt that the creation of a Federal Financial Crimes Office is the philosopher’s stone.”
With material from Reuters.