Nazis in the Attic? Germany rejects beneficial ownership transparency

Can you keep a secret?

On 17 May 2017, the members of the Finance Committee of the Bundestag cast their votes for ultimate amendments to Germany’s anti-money laundering law. The governing conservatives CDU/CSU and Social Democrats SPD rejected amendments supported by the left and Green party that would have remedied three fundamental flaws in the law which prevent the public from accessing beneficial ownership information on German legal entities. These flaws consist of

• the failure to make the registry of beneficial owners public
• the registry’s restricted scope which is likely in breach of the 4th EU Anti-money laundering directive
• a watered down the definition of beneficial ownership.

The law will be voted on in its current form by the Plenary of the Bundestag in the evening of the 18th May, with no opportunity to change the text further. The only way to stop and/or amend the law would be through the Bundesrat, Germany’s upper chamber. However, after recent elections, this outcome appears to be less likely.

Despite severe critiques presented at the law’s public hearing in the finance committee on 24 April, none of the fundamental weaknesses identified by TJN, German Netzwerk Steuergerechtigkeit and Transparency International have been addressed by the amendments voted for by the governing coalition  (more...)

Germany rejects beneficial ownership transparency

Background:

Tax Haven Germany

Tax Havens and Human Rights