Money Laundering Reporting Officer (MLRO)

Money Laundering Reporting Officer (MLRO)

Section 7 of the German Anti-Money Laundering (AML) Act – Money Laundering Reporting Officer (MLRO)

(1) Obliged entities under section 2 (1) nos. 1 to 3, 6, 7, 9 and 15 are to appoint a money laundering reporting officer at senior management level and a deputy. The money laundering reporting officer is responsible for compliance with the provisions under anti-money laundering and counter terrorist financing law. They are directly subordinate to the top management level.

2) The supervisory authority may exempt an obliged entity from the obligation to appoint a money laundering reporting officer if it is guaranteed that

1. there is no risk of information loss or deficits on account of a separation of duties in the company structure and

2. other provisions are made, after a risk-based evaluation, to prevent business relationships and transactions related to money laundering and terrorist financing.

(3) The supervisory authority may order that obliged entities under section 2 (1) nos. 4, 5, 8, 10 to 14 and 16 are to appoint a money laundering reporting officer if it deems such an appointment appropriate. In the case of obliged entities under section 2 (1) no. 16, the order should be issued if the main activity of the obliged entity consists in trading in high-value goods.

(4) The obliged entities are to give prior notification to the supervisory authority of the appointment or dismissal of the money laundering reporting officer or their deputy. The appointment of the money laundering reporting officer or the deputy must be revoked on the instruction of the supervisory authority if the appointee does not fulfil the requirements with regard to qualification or reliability.

(5) The money laundering reporting officer must carry out their function in Germany. They must be the point of contact regarding compliance with the relevant provisions for the law enforcement agencies, for the authorities responsible for the detection, prevention and elimination of threats, for the German Financial Intelligence Unit and for the supervisory authority. The money laundering reporting officer is to be granted sufficient powers and the means necessary to carry out their function properly. In particular, they are to have or be given unrestricted access to all information, data, records and systems which could be of importance in the performance of their functions. The money laundering reporting officer is to report directly to the top management level. If the money laundering reporting officer intends to submit a report under section 43 (1) or is responding to a request for information from the German Financial Intelligence Unit under section 30 (3), they are not subject to the right of the top management level to issue instructions.

(6) The money laundering reporting officer may use data and information solely for the purpose of performing their functions.

(7) The money laundering reporting officer and the deputy must not suffer any disadvantage in their employment as a result of the performance of their functions. The termination of their employment is inadmissible unless facts exist that entitle those responsible to terminate the employment for good cause without observing a notice period. Following the end of the appointment of the money laundering reporting officer or deputy, a termination of their employment is inadmissible within a year of the appointment end date, unless those responsible are entitled to terminate the employment for good cause without observing a notice period.