Germany overhauls anti-money laundering defenses ahead of FATF review
Germany is stepping up its fight against money laundering with a series of new measures. Finance Minister Lars Klingbeil has announced reforms to strengthen existing agencies rather than create a new one. The changes aim to prepare the country for an upcoming evaluation by the Financial Action Task Force (FATF) in 2028–2029. Money laundering remains a major risk for Germany as a key financial and business centre. Illegal flows weaken the financial system, cost the state significant revenue, and help criminal networks grow. Previous plans to set up a dedicated Federal Office for Combating Financial Crime failed due to political disagreements.
Instead of launching a new agency, Klingbeil has chosen to expand the powers of the customs service. The agency will now lead investigations into large-scale international money laundering cases across the country. At the same time, the Financial Intelligence Unit (FIU) will gain greater independence under the customs authority. The FIU will also create a national training centre for federal and state officials. This hub will specialise in tackling money laundering and terrorist financing. The goal is to improve coordination and expertise before the FATF’s next review.
The reforms focus on making current agencies more effective rather than building new structures. Customs officers will take on a bigger role in financial crime investigations, while the FIU gains more autonomy. These steps are designed to meet international standards and protect Germany’s financial system ahead of the FATF assessment.
