EU Anti-Money Laundering Package

The Council of the European Union adopted the so-called EU anti-money laundering package on 30 May 2024 ("AML Package"). This will standardize the regulations for combating money laundering in the EU. The new AML Package will have a significant impact on transparency register obligations in Germany. 

All anti-money laundering regulations applicable to the private sector will be transferred to a new, directly applicable EU Regulation. Numerous rules relating to the transparency register obligations of companies will then apply uniformly and directly throughout the EU for the first time and replace the previous regulations in the German Anti-Money Laundering Law ("GwG"). 

The EU Regulation will apply in almost all parts three years after its entry into force. Member states have two years to implement some other parts of the AML Package.

Key amendments

• There will be a consistent EU-wide definition of beneficial ownership, which is based on the elements of "ownership" and "control". 

• Generally, the 25% threshold currently existing in the GwG at the first level of shareholdings will be retained. However, the EU Regulation allows a lower threshold of a maximum of 15% to be set for companies in high-risk areas.

• When determining the beneficial owner across multi-level shareholding structures, the beneficial owners will be determined by multiplying the shares in the chain of ownership. For this purpose, all shares that are directly or indirectly owned by the same natural person are to be added together. In future, all levels of ownership will therefore be taken into account.

• The information on the beneficial owner(s) to be entered into the national transparency register will be more extensive. In future, in addition to the data already to be submitted, the federal ID number and - if available - a unique personal identification number assigned to the person by his/her country of habitual residence as well as a general description of the source of this number must be submitted to the transparency register. In the case of multi-level shareholding structures, the ownership and control structure must be submitted by stating the names of all companies with identification numbers and a description of the relationships, including shareholder percentages. 

• The group of persons subject to transparency obligations will be extended. In future, non-EU companies will also be obliged to provide information on their beneficial owners in the transparency register if they enter into a business relationship with an obliged party in the EU or (for example as a dealer) acquire cars at a price of at least EUR 250,000, yachts at a price of at least EUR 7,500,000 and aircraft at a price of at least EUR 7,500,000 for non-commercial purposes in the EU.

Recommendation for action

The regulations on transparency register obligations currently contained in the GwG are likely to be largely replaced by the new EU Regulation. The AML Package will mean a considerable amount of work for affected companies, as the existing entries in the transparency register will have to be reviewed, evaluated and supplemented or updated on the basis of the new criteria from the legislative package. Therefore, affected companies should take the AML Package that has now been adopted as an opportunity to prepare themselves adequately and in good time for the new regulations in Germany.

Click here to read the German version.