Germany Sees Massive Increase In Number Of Money Laundering Cases Reported

by Ulrika Lomas, Tax-News.com, Brussels

13 November 2001

According to a survey conducted by German newspaper Handelsblatt, the country has seen a vast increase in the number of suspected money laundering and tax evasion cases reported since the September 11th terrorist attacks.

The poll shows that nearly all of the country's federal states have recorded an increase in suspected cases of money laundering and tax evasion, with North Rhine-Westphalia, Germany's most densely populated state, reporting 300 suspected cases since September. According to the survey, the south-western state of Baden-Wurttemburg has also racked up more than double its usual number of suspected money laundering cases, and Bavaria has reported a considerable increase.

Officials have reassured that this is due to increased sensitivity on the part of German banks rather than a sudden increase in money laundering activity, and have praised the response of the country's financial services sector. However, there is widespread opposition to the proposal made recently by the German Interior minister, Otto Schilly, to centralize the country's money laundering forces.

Experts feel strongly that the federal authorities are able to respond more swiftly to allegations than a centralized authority would be able to, and the federal authorities argue that their local presence ensures good relationships with the banks, and hence increased reporting. 'More than 10,000 cases are being reported each year- how can a single office manage to investigate them all?' one official mused to Handelsblatt at the weekend.

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