Money Laundering Prevention | E-Learning

Preventing money laundering in companies

Companies subject to the Money Laundering Act (GwG) (such as credit institutions, banks, or goods traders) are required to fulfill various due diligence obligations to prevent and combat money laundering and terrorist financing. Money laundering is defined as the introduction of illegally acquired assets into the legitimate financial system. The GwG provides the legal basis for combating this and highlights the need to establish anti-money laundering measures in companies and to inform employees about them.

Compliance should combat money laundering

The role of compliance in the area of money laundering is usually the responsibility of a compliance officer or several employees within the company. Compliance is tasked with implementing appropriate risk management, which means, for example, introducing and establishing processes and controls, including those within management. This prevents violations of the Money Laundering Act within the company. Money laundering compliance also involves communicating the relevant compliance guidelines internally and raising employee awareness through compliance training. If companies and management fail to comply with the legal provisions of the Money Laundering Act and a violation occurs, sanctions may apply.

Sanctions can affect not only companies but also employees

Not only the company, but also individual employees face consequences for violations: A decision-maker may also be held personally accountable for supporting money laundering activities, especially if organizational negligence can be proven. Furthermore, decision-makers may also face employment law consequences if they have violated internal compliance regulations.