Lawyer specializing in money laundering cases in Hamburg Mitte – Specialized criminal defense

A particularly relevant topic in white-collar crime law in Germany and Hamburg-Mitte is money laundering. Money laundering (ML) refers to the introduction of illegally acquired assets into the legal economic system while concealing their true origin. The criminal offense of money laundering is defined in Section 261 of the German Criminal Code.

As part of an effective fight against money laundering and terrorist financing, the Money Laundering Act (GwG) imposes various obligations on certain companies and groups of people regarding the prevention of money laundering. The Federal Financial Supervisory Authority (BaFin) plays a central role in Germany as the supervisory authority responsible for monitoring compliance with these obligations.

Criminal liability under the German Criminal Code

Under Section 261 Paragraph 1 of the German Criminal Code (StGB), money laundering is a criminal offense committed by anyone who conceals the origin of illegally obtained assets. In many cases, this involves money derived from crimes such as receiving stolen goods (Section 259 StGB), robbery (Section 250 StGB), tax evasion (Section 370 AO), corruption, or drug and arms trafficking.

The prerequisites for fulfilling the offense are as follows:

The asset in question must be from a unlawful predicate offense come from.
A suitable Act must be present:
a) Section 261 Paragraph 1 Sentence 1 Number 1 of the German Criminal Code: Hide of the object
b) Section 261 Paragraph 1 Sentence 1 Number 2 of the German Criminal Code: Exchange, transfer or transfer of the object with the intention of preventing its discovery, confiscation, or the determination of its origin.
c) Section 261 Paragraph 1 Sentence 1 Number 3 of the German Criminal Code: Provide of the object (to yourself or to a third party)
d) Section 261 Paragraph 1 Sentence 1 No. 4 of the German Criminal Code: Keep or Use of the object if its origin was known at the time of acquisition
e) Section 261 Paragraph 3 of the German Criminal Code: Conceal or Concealing the factswhich could be relevant for the location, confiscation or determination of the origin of the object
The origin of the assets must be known or at least grossly negligent (carelessly) misunderstood.

The law generally provides for a prison sentence of up to 5 years or a fine for the fulfillment of the elements of the offense. Obligated Those convicted under Section 2 of the Money Laundering Act (GwG) face a prison sentence of three months to five years. In particularly serious cases, such as commercial activity or ongoing money laundering as a member of a gang, the prison sentence ranges from six months to ten years. This also applies to... careless misjudgments The unlawful origin of money is already a criminal offense.

It may be possible to avoid punishment if the crime is voluntarily reported to the relevant authorities or if the object of the crime is seized. This is conditional upon the crime not having already been partially or fully discovered and this fact being known or reasonably expected.

Money Laundering Act (GwG)

The GwG regulates in particular the responsibilities for combating money laundering and the associated precautionary measures. These include, in particular, Reporting, monitoring, documentation and due diligence obligations. To verify the origin of assets, Section 2 of the German Money Laundering Act (GwG) obligates various groups of people and companies to submit a corresponding suspicious activity report (so-called money laundering report) for certain transactions. This applies regardless of the payment method or the transaction amount. Criminal proceedings for money laundering are frequently initiated because banks or other financial institutions submit such reports. Money laundering suspicion report have submitted.

„Obligated“For the purposes of the Money Laundering Act, the following are in particular:

Banks, credit institutions, financial companies and asset managers
Legal advisors, tax advisors and notaries
Insurance
auditor
Gambling providers
Businesses with high cash transactions
customs officers
Real estate agent
art mediator

Violations of the obligations stipulated in the Money Laundering Act (GwG) can result in a fine of up to one million euros or up to twice the economic benefit derived from the violation.

The basis for national legislation in the form of the German Money Laundering Act (GwG) is the current EU Money Laundering Directive, which was last revised in 2024. Further amendments to the GwG are expected soon. 6. EU Anti-Money Laundering Directive It must be transposed into national law by the member states of the European Union by July 10, 2027. Essentially, the new EU Anti-Money Laundering Directive builds on previous anti-money laundering directives, but also expands its requirements and defines even stricter measures against criminal activities to effectively combat money laundering and terrorist financing. This is partly due to the fact that the number of money laundering offenses recorded by the police in Germany alone more than tripled between 2020 and 2023. The global volume of money laundering is estimated at up to 2 trillion US dollars.

In Germany, the BaFin (Federal Financial Supervisory Authority) BaFin is responsible for monitoring compliance with the German Money Laundering Act (GwG). It is the competent supervisory authority for companies and organizations subject to the GwG, particularly in the financial sector, such as credit institutions, financial service providers, and insurance companies. The official BaFin website provides informative links to the latest developments and is also a resource for the press seeking information.

The tasks of BaFin include:

Monitoring compliance with the Money Laundering Act (GwG) by obliged entities and systemic money laundering prevention.
Publication of interpretive and application guidelines (AuA) on the Money Laundering Act (GwG) to support companies in fulfilling their due diligence obligations.
Examination of the identification obligations under the Money Laundering Act (GwG).
Order to appoint money laundering officers, if necessary.
Withdrawal of exemptions in the Money Laundering Act in order to promote a stricter and more uniform implementation of due diligence obligations, particularly in the run-up to the EU Money Laundering Regulation coming into force in July 2027.
Intervention in cases of systemic deficiencies and individual incidents to ensure compliance with legal requirements.

What is Hawala banking?

The term "hawala" comes from Arabic and means "remittance." The hawala banking system is an informal financial system used worldwide, including in Germany and especially in Hamburg Mitte, for transferring money. It enables informal financial transfers, bypassing direct transactions of money and assets. The foundation of this system—which has been operating for decades—is trust and secrecy. Hawala banking generally functions without paper documents, accounts, or banks, thus evading government oversight.

How does Hawala banking work?

The system works via middlemen, the so-called Hawaladare. A hawaladar receives the money from the sender, who wishes to transfer funds and hands over cash to their local hawaladar. These hawaladars are often found in inconspicuous locations, such as restaurants or small shops. The first hawaladar, who receives the cash, organizes – usually through their own network – the service of disbursing the money to the recipient via another hawaladar at the distribution point. During communication between the first hawaladar at the deposit location and the second hawaladar at the distribution point, the amount to be transferred and a disbursement code are exchanged. Simultaneously, the sender shares the code with the recipient via a type of message. The recipient can then use this code to identify themselves to their hawaladar at the distribution point and receive the money there in cash – in this case, for example, in euros, the local currency.

There is usually no direct flow of money between hawaladars in the form of cash or bank transfers. It is also irrelevant how the asset is transferred from one hawaladar to the next, or whether a cash flow or settlement takes place. Only the economic outcome of the financial transfer matters. For the service of transferring money from one place to another, the respective hawaladars retain a certain percentage of the money as a "fee" or commission.

Criminal liability risks in Hawala banking

This banking system is used in Germany and the EU. not permissible, Because it violates all money laundering regulations. In recent years, law enforcement agencies in Hamburg and across Germany have become increasingly vigilant regarding Hawala banking. The system's international networks serve many purposes – it is particularly widespread in the precious metals and real estate sectors, but organizations such as Welthungerhilfe (World Hunger Aid) and refugees also use it to transfer funds to other countries. The global volume is difficult to ascertain. However, it is estimated that approximately 200 billion euros are transferred annually using these systems.

The main focus of criminalizing Hawala banking in Germany is the violation of the Payment Services Supervision Act (ZAG). This is justified by the fact that Hawala banking operates outside the official banking and financial system, which is subject to state supervision. Criminal liability for the unauthorized provision of payment services The offense is governed by Section 63 Paragraph 1 of the German Payment Services Supervision Act (ZAG) and provides for a prison sentence of up to five years or a fine. The wording of the provision already presupposes multiple acts, so that, according to the German Federal Court of Justice (BGH), the repeated provision of such transactions within a single business constitutes only one offense in the legal sense. Furthermore, according to the BGH, a license for providing such payment services is only required if the activity is carried out commercially. Isolated payment services outside of such a framework are therefore not subject to licensing requirements and do not constitute a criminal offense.

Federal Court of Justice (BGH), judgment of January 9, 2025 (Case No. 3 StR 111/24) on the legal classification of activities within the framework of Hawala banking:

In its judgment of January 9, 2025, the Federal Court of Justice (BGH) ruled on the appeal against a judgment of the Regional Court of Dresden, in which the Syrian defendant had been sentenced to imprisonment for the commercial smuggling of foreigners, membership in a criminal organization abroad and the unauthorized provision of payment services within the framework of a Hawala banking system.

The defendant operated an international Hawala system from Germany, organized without a BaFin (Federal Financial Supervisory Authority) license, through which he facilitated money transfers of at least €80,000 and received commissions. He also acted as a financial agent in the smuggling of Syrian nationals to Germany, holding smugglers' funds and disbursing them to the smugglers. The Hawala system was classified as a criminal organization operating as a shadow financial system and thus evading regulation. In its ruling, the Federal Court of Justice (BGH) emphasized the criminal nature and regulatory relevance of informal payment networks in combating money laundering and human trafficking in Germany.

Anyone who works in such a system as middleman Collecting funds and forwarding them within the network can constitute criminal activity, such as membership in a criminal organization and the unauthorized provision of payment services. The criminal liability of criminal organizations, even abroad, is governed by Sections 129 and 129b of the German Criminal Code (StGB). Establishing such associations and participating as a member is punishable by imprisonment of up to five years or a fine. Supporting and promoting such associations is also punishable by imprisonment of up to three years or a fine.

Federal Court of Justice (BGH), judgment of June 2, 2021 (Case No. 3 StR 61/21) on the classification of a Hawala banking organization as a criminal organization:

According to this ruling by the German Federal Court of Justice (BGH) from June 2021, in the case at hand, a group of more than two people operated over a prolonged period with a division of labor and an organized structure to repeatedly provide unauthorized payment services in accordance with Section 63 of the German Payment Services Supervision Act (ZAG). The Hawala system served to provide anonymity and circumvent state financial supervision.

According to the Federal Court of Justice (BGH), the proceeds of crime are primarily the commissions received by those involved, while customer funds, as instruments or objects of the crime, are not subject to confiscation. This ruling by the BGH also applies to ordinary members of the organization, and cultural or familial reasons do not preclude criminal liability.

Federal Court of Justice (BGH), judgment of 21 February 2023 (Case No. 3 StR 278/22) on the Hawala banking network as a criminal organization and the handling of the confiscation of funds in Hawala transactions:

In a judgment dated February 21, 2023, the Federal Court of Justice (BGH) confirmed the conviction of defendants for jointly operating Hawala banking in Germany, classified as a criminal organization under Section 129 of the German Criminal Code (StGB).

The defendants organized large-scale cash deposits and money transfers between Germany and Turkey without the required BaFin (Federal Financial Supervisory Authority) license for payment services. They were also found to be in illegal possession and carrying of semi-automatic firearms during money transports. The total amount of money involved is in the high tens of millions of euros, with substantial commissions being pocketed.

The Federal Court of Justice (BGH) has confirmed the confiscation of the value of the proceeds of the crime (commissions), but not the confiscation of customer funds, as these are to be treated as instruments of the crime.

Lawyer in criminal proceedings concerning Hawala banking in Hamburg Mitte

Prosecuting Hawala banking offenses in Germany is also a challenge for authorities because there are cases where it is used for legitimate purposes, such as supporting people through organizations like Welthungerhilfe (World Hunger Aid) or other aid agencies. Humanitarian organizations—like Welthungerhilfe—use the Hawala system to transfer funds to crisis zones where access to banks and the formal payment system is difficult. Therefore, news reports on the ambivalence of Hawala (supporting people in crisis zones on the one hand and criminal activities on the other) are frequently found in the press.

Individuals who get into difficulties in connection with Hawala banking in Germany, especially those who are accused or even defendants in criminal proceedings, should contact lawyers specializing in criminal law as soon as possible.