Section 9 GwG – Group-wide requirements
(1) 1Obliged entities that are parent companies of a group are required to conduct a risk analysis for all branches, establishments and group companies under section 1 (16) nos. 2 to 4 that are subject to obligations under anti-money laundering and counter terrorist financing law. 2On the basis of this risk analysis, they must take the following measures on a group-wide basis:
- the establishment of consistent internal controls and safeguards under section 6 (2),
- appointment of a money laundering officer who is responsible for devising a group-wide strategy for the prevention of money laundering and terrorist financing and for the coordination and monitoring of its implementation,
- the creation of procedures for the exchange of information within the group to prevent money laundering and terrorist financing and
- the creation of precautions for the protection of personal data.
3They must ensure that the measures they have taken under sentence 2 nos. 1, 3 and 4 are effectively implemented by their branches, establishments and group companies under section 1 (16) nos. 2 to 4, insofar as they are subject to obligations under anti-money laundering and counter terrorist financing law and are controlled by the parent company.
(2) Obliged entities that are parent companies of a group must ensure that establishments and group companies under section 1 (16) nos. 2 to 4 that are majority owned and located in another member state of the European Union under whose laws they are subject to anti-money laundering and counter terrorist financing obligations comply with the applicable national legislation in that member state transposing Directive (EU) 2015/849.
(3) 1Obliged entities that are parent companies of a group must ensure that branches and group companies under section 1 (16) nos. 2 to 4 that are majority owned and located in a third country in which the minimum requirements for preventing money laundering and terrorist financing are less rigorous than the requirements applying to companies whose registered office is in Germany must with the requirements under the present Act if permitted by the laws of the third country. 2Insofar as implementation of the measures referred to in section 1 sentence 2 nos. 1, 3 and 4 is not permitted under the laws of the third country, the parent company must
- ensure that their branches and group companies referred to in sentence 1 that are majority owned take additional measures to effectively counter the risk of money laundering and terrorist financing, and
- inform the competent supervisory authority under section 50 of the measures taken.
3If the measures taken are insufficient, the competent supervisory authority under section 50 is required to direct the parent companies to ensure that the branches and group companies under section 1 (16) nos. 2 to 4 referred to in sentence 1 do not initiate or continue any business relationship or carry out any transactions in that third country.
(4) Subsections (1) to (3) apply to obliged entities, with the necessary modifications, - that are group companies under section 1 (16) nos. 2 to 4, insofar as at least one other company under section 1 (16) nos. 2 to 4 is subordinate to and controlled by them, and
- whose parent company is not required to take group-wide measures either under subsection (1) or under the law of the country in which it is located.
(5) 1Obliged entities that are group companies under section 1 (16) nos. 2 to 4 of a parent company within the meaning of subsection (1) must implement the measures referred to in subsection (1) sentence 2 nos. 1, 3 and 4. 2All other obliged entities in the group must implement the group-wide requirements applicable to them, which must include in particular procedures for the exchange of information within the group to prevent money laundering and terrorist financing, as well as precautions for the protection of personal data. 3The obligations under sentences 1 and 2 apply without prejudice to the obliged entities’ own statutory obligation to comply with other provisions of anti-money laundering and counter terrorist financing law.