Money laundering is the smuggling of criminally acquired funds (e.g. from drug trafficking) into the legal financial system with the aim of concealing their true origin. It also includes the smuggling of other assets (e.g. stolen cars or jewelry).

The aim of the Act on the Tracing of Profits from Serious Crimes (Money Laundering Act - GwG) is to prevent money laundering and terrorist financing.

The AMLA imposes special duties of care and internal security measures on certain companies and persons (obliged entities) to make their business relationships and business activities transparent. In this way, the obliged entities are to prevent transactions with a criminal background and contribute to their detection.

In Lower Saxony, the Hanover region, the districts and the independent cities, including the city of Salzgitter, are the competent supervisory authorities for the implementation of the AMLA for certain obliged entities in the so-called non-financial sector. In addition to insurance brokers and real estate agents, certain financial companies and certain other service providers, the non-financial sector also includes commercial goods dealers (e.g. car dealers, jewelers).

The City of Salzgitter must therefore ensure that the obligations under the GwG are implemented by the above-mentioned obligated parties in the areas to be supervised. This is done by informing the companies concerned about their legal obligations and the measures to be taken to ensure that they are not misused for money laundering or terrorist financing. Brochures and a form are available for download here.

The Money Laundering Act also stipulates that the supervisory authorities can monitor compliance with obligations and impose fines for violations. The supervisory authorities are also obliged to report suspected cases to the responsible law enforcement authorities and the Federal Criminal Police Office. Violations of the obligations under the AMLA constitute an administrative offense and can be punished with fines of up to €100,000.

Please send any information or questions to: geldwaeschestadt.salzgitterde