According to Germany's Financial Investigation Agency, the country has seen a record rise in money laundering over the past year, with a 50 per cent increase in money laundering and most investments in real estate.
The Financial Investigation Unit (FIU), set up by the German government, said in its 2019 report that the number of cases of money laundering in Europe's largest economy increased by almost 50% last year.
The money laundering took place in the form of dubious financial transfers, as well as the transfer of illicit financial resources for terrorist purposes.
According to the Berlin-based newspaper Tagis Spiegel, a total of 114,914 money laundering cases were registered in the country in 2019, according to the German Federal Financial Intelligence Unit.
That number is about one and a half times the number of such cases in 2018, a record on an annual basis. These suspicious money transfers were detected with the help of German banks, financial institutions and real estate agents. A total of 355,000 transfers took place during these events.
Christoph Schultz, head of the FIU, told the Tagess-Spiegel newspaper: "One of our major problems is that in Germany, money laundering has not yet become a legal tradition. ''
Invest more in real estate
The Financial Intelligence Unit also said in its annual report last year that most of the dubious black money deals are done in the property market.
In 2018, 77,000 money laundering cases were registered in Germany. Steps taken so far in Germany to curb illicit money investment include a new law passed by the country's parliament in November last year. The aim was to bring German money laundering laws in line with EU regulations.
Under the law, property agents, legal experts, precious metals traders and even auction houses assisting in the sale and purchase of property are required to report any suspicious transfer of capital to the authorities.
Real estate bought with 30 billion euros in black money
Transparency International, an organization fighting corruption and financial irregularities, has also called on the German government to introduce legal reforms to effectively curb money laundering.
The organization said this especially after the revelation that in 2017, 30 billion euros (34 billion) of black money was invested in the German property market.
According to Transparency International, organized criminal groups, such as the Italian mafia group, use loopholes in German law to buy property in the country in a way that makes it possible for them to legitimize illicit money.
The organization says that between 15% and 30% of the proceeds from international criminal activities are used to purchase immovable property.
The German agency FIU is headquartered in the western city of Cologne and is legally a subsidiary of the German Customs Department.
