German Financial Market Digitalisation Act

German Financial Market Digitalisation Act

Proposed amendment of the German Money Laundering Act (GwG)

The German Money Laundering Act of June 23, 2017 (Federal Law Gazette I p. 1822), last amended by Article 8 of the Act of May 31, 2023 (Federal Law Gazette 2023 I No. 140), is amended as follows:

In the table of contents, the following entry is inserted after the entry for § 15:
„§ 15a Enhanced due diligence for the transfer of crypto values to or from a self-hosted address“

§ 1 is amended as follows:

Paragraph 28 is amended as follows:

In number 1, the period at the end is replaced by a semicolon.
In number 3, the period at the end is replaced by a semicolon.

The following numbers 4 and 5 are added:

„4. Regulation (EU) 2023/1113 refers to Regulation (EU) 2023/1113 of the European Parliament and of the Council of May 31, 2023 on the transmission of information on fund transfers and certain crypto-asset transfers and amending Directive 2015/849 (OJ L 150 of 9.6.2023, p. 1); Regulation (EU) 2023/1114 refers to Regulation (EU) 2023/1114 of the European Parliament and of the Council of May 31, 2023 on markets for crypto-assets and amending Regulations (EU) No. 1093/2010 and (EU) No. 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (OJ L 150 of 9.6.2023, p. 40).“

Paragraph 29 is reworded as follows:

„(29) For the purposes of this Act, crypto-assets are crypto-assets as defined in Article 3 number 14 of Regulation (EU) 2023/1113.“

Paragraph 30 is reworded as follows:

„(30) For the purposes of this Act, the transfer of crypto-assets is any crypto-asset transfer as defined in Article 3 number 10 of Regulation (EU) 2023/1113.“

The following paragraphs 31 to 33 are added:

„(31) Crypto-asset service providers for the purposes of this Act are providers of crypto-asset services as defined in Article 3(1) number 15 of Regulation (EU) 2023/1114, if they provide one or more crypto-asset services as defined in Article 3(1) number 16 of Regulation (EU) 2023/1114, except for advice on crypto-assets as referred to in Article 3(1) number 16 letter h of Regulation (EU) 2023/1114. Issuers of asset-referenced tokens for the purposes of this Act are issuers of asset-referenced tokens as defined in Article 16(1) letter a of Regulation (EU) 2023/1114, who do not exclusively offer asset-referenced tokens to the public through a provider of crypto-asset services or do not exclusively apply for admission to trading through a provider of crypto-asset services. Self-hosted address for the purposes of this Act is a self-hosted address as defined in Article 3 number 20 of Regulation (EU) 2023/1113.“

In § 2 paragraph 1 number 2, the word „and“ is replaced by a comma and the words „as well as providers of crypto-asset services and issuers of asset-referenced tokens“ are inserted after the word „abroad“.

After § 6 paragraph 4, the following paragraph 4a is inserted:

„(4a) Providers of crypto-asset services shall take appropriate measures to ensure compliance with the requirements of Regulation (EU) 2023/1113.“

§ 8 sentence 1 is amended as follows:

In number 4, the word „and“ is replaced by a comma.
In number 5, the period at the end is replaced by the word „and“.

The following number 6 is added:

„6. the decision of an obliged entity on the termination of a cross-border correspondent banking relationship for reasons of prevention of money laundering or terrorist financing.“

§ 15 paragraph 7 is supplemented by the following sentence:

„In the case of a cross-border correspondent relationship between providers of crypto-asset services, the obliged entity shall additionally obtain information on the licensing or registration of the respondent in addition to the enhanced due diligence obligations according to sentence 1 number 1.“

After § 15, the following § 15a is inserted:

„§ 15a Enhanced due diligence obligations for the transfer of crypto-assets to or from a self-hosted address Obliged entities.“.

Source:

https://www.bundesfinanzministerium.de/Content/DE/Gesetzestexte/Gesetze_Gesetzesvorhaben/Abteilungen/Abteilung_VII/20_Legislaturperiode/2023-10-23-FinmadiG/0-Gesetz.html