Reporting thresholds increased and deadlines standardized
On January 1, 2025, various changes to the German Foreign Trade and Payments Regulation (AWV) came into effect. For example, the reporting requirement for cross-border payments has been raised to €50,000. Additionally, reporting deadlines have been standardized.
The AWV reporting obligation serves to secure the financial system and is intended, among other things, to prevent money laundering. It applies equally to businesses and individuals and covers both outgoing and incoming payments. Until now, cross-border financial transactions of €12,500 or more had to be reported to the Bundesbank. Since January 1, 2025, the reporting requirement applies only to transactions of €50,000 or more, according to the law firm MTR Legal Rechtsanwälte. Exemptions apply to financial institutions’ transaction reports related to travel transactions as well as interest and dividend payments on domestic securities.
Reporting obligation for assets, receivables, and liabilities
Another change concerns the reporting obligation for existing assets, receivables, and liabilities. The reporting threshold has been increased from the previous €5 million to €6 million. The reporting requirement continues to apply to the assets of domestic entities abroad and foreign entities in Germany. However, the threshold for these has also been raised from €3 million to €6 million.
Where details on key metrics such as total assets, annual revenue, or number of employees were previously optional, they are now mandatory. This is intended to enable a more precise analysis of economic activities.
Cryptocurrencies also subject to reporting requirements
Additionally, the growing importance of cryptocurrencies has been taken into account. The introduction of new key figures is intended to allow for better classification of different asset types.
Standardization of reporting deadlines
Alongside changes in reporting obligations, reporting deadlines have also been modified and harmonized. This brings significant relief, as different deadlines are now a thing of the past. Since January 1, 2025, the 7th working day of the month has generally been established as the uniform deadline for all transaction reports, regardless of the type of transaction.
For receivables and liabilities, the uniform deadline is now the 10th working day of the month. However, for derivative financial instruments, the deadline is the 50th working day after the end of a calendar quarter. The reporting deadline for direct investments remains unchanged.
Income from maritime shipping by domestic entities no longer needs to be reported. § 69 of the AWV, “Reporting of payments by shipping companies,” has been repealed.
Paper forms replaced
Although paper forms were already replaced by electronic data submission in 2013, they remained part of the AWV as supplementary documents. Now, they are set to be phased out entirely and replaced by survey charts, which are expected to be available in the reporting portal by mid-year.
By increasing the reporting thresholds and harmonizing deadlines, companies and individuals are expected to experience relief in meeting their AWV reporting obligations. However, failure to submit reports or delayed submissions can result in fines, the amount of which depends on the severity of the violation. Incomplete or incorrect reports may also lead to penalties.
Self-disclosure under the AWV
If a timely report was not submitted, a self-disclosure may be possible. Submitting a self-disclosure under the AWV can help avoid fines, provided that certain conditions are met. The self-disclosure must be voluntary and complete, meaning that authorities must not have already initiated investigations, and it must contain all relevant information regarding unreported capital transactions.
If these conditions are met, self-disclosure can lead to immunity from fines or other legal consequences. However, this is only possible if the violation of the AWV reporting obligations was due to negligence and not intentional misconduct.
AWV reporting obligation and the Money Laundering Act
Like the Money Laundering Act, the AWV reporting obligation is intended to combat money laundering. However, there are significant differences between the two. While the AWV reporting requirement applies regardless of any suspicion, the Money Laundering Act requires banks, financial service providers, insurers, goods traders, and other businesses to report suspicious financial transactions.
MTR Legal Rechtsanwälte provides legal advice on matters related to the Money Laundering Act, AWV reporting obligations, and other areas of business law.
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