Money laundering

Introducing money acquired through illegal means into the economy in such a way as to conceal its origin

Money laundering is prohibited in Germany. Once money obtained through illicit activities has been introduced into the economy (e.g. through a cash deposit to a bank account), its origin can no longer be traced.

To prevent money laundering, financial service providers and insurance companies that offer life insurance policies are obligated to confiscate the personal documents of anyone who attempts to make a deposit of more than euro 10,000, and to notify the police of any suspicious transactions.

The prohibition on money laundering is specified in the German Penal Code (Strafgesetzbuch), section 261. Regulations on tracking down profits from criminal activity is regulated in the Money Laundering Act (Geldwäschegesetz).

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