Under Germany’s AWV reporting obligation, all payments to or from foreign countries exceeding €50,000 (effective 1 January 2025) must be reported to the German Bundesbank. Given the complexity of these reporting requirements, ensuring compliance can be challenging. Failure to meet the obligation may result in fines of up to €30,000.
At Schlun & Elseven Rechtsanwälte, our experienced legal team provides comprehensive guidance on all aspects of AWV reporting. We assist with the reporting process, advise on missed submissions, represent clients in fine proceedings, and explore options for voluntary self-disclosure.
How to Fulfil the AWV Reporting Obligation in Germany
AWV reports must be submitted directly to the Deutsche Bundesbank via its General Reporting Portal Statistics (AMS), which enables the electronic submission of foreign trade and stock reports. According to the Bundesbank, paper submissions are generally no longer accepted. However, private individuals may still report transactions by phone. For documentation purposes, it is advisable to maintain a record of the report and submit it through the AMS.
A valid AWV report must include the following details:
- Personal details of the reporting party
- Name of the payer and payee
- Purpose of the payment
- The country involved in the transaction
- Payment amount
- Date of the payment
Additional details may be required depending on the nature of the transaction.
Furthermore, adherence to reporting deadlines is essential. Under the new AWV reporting regulations effective January 2025:
- Payment reports must be submitted by the 7th working day of the month following the transaction.
- Stock reports must be submitted by the 10th working day of the following month.
Other deadlines may apply in specific cases. Our legal team can provide tailored advice to ensure full compliance with AWV regulations.
What Transactions Are Subject to the AWV Reporting Obligation in Germany?
In principle, all international payments must be reported. Under the AWV, “payments” include:
- Transfers, set-offs, and netting transactions
- Money transfers via direct debit or cheque
- The transfer of assets and rights to companies, branches, or permanent establishments
- Transactions involving crypto assets, as defined in § 67(3) AWV.
The reporting obligation applies regardless of the country of origin or destination of the payment. It also covers transactions within the EU, even if made in euros.
However, certain exceptions under § 67(2) AWV exempt the following transactions from reporting:
- Payments below €50,000 (or the equivalent in another currency)
- Payments related to the import, export, or transfer of goods
- Loans with a maximum term of 12 months, including their granting, repayment, or acquisition
The reporting obligation applies to all residents in Germany, including both natural and legal persons with a habitual residence, domicile, or registered office in the country.
Consequences of Non-Compliance with the AWV Reporting Obligation in Germany
Failure to comply with AWV reporting requirements is a serious matter. Under § 81(2) No. 19 AWV, failing to report a qualifying transaction constitutes an administrative offence, which can result in fines of up to €30,000 per § 19(6) AWG. Late, incomplete, or incorrect reports are treated as non-reports, and penalties may be imposed separately for each violation—potentially leading to substantial fines for businesses engaged in frequent international transactions.
If you realise that a required report has not been submitted, it is strongly advisable to make a voluntary self-disclosure. Under § 22(4) AWV, prosecution and fines can be waived if the omitted report is submitted voluntarily before an investigation begins. However, once the authorities initiate an inquiry, a late report will no longer be considered a valid self-disclosure.
Authorities may uncover unreported transactions through various means, including audits by customs or foreign trade authorities and reviews by the Bundesbank, which can scrutinise reported payments and request further details. This may sometimes result in on-site inspections and thorough document checks.
Businesses and individuals should carefully monitor payment transactions and ensure timely and accurate reporting to avoid compliance risks. Our legal team is available to provide expert guidance on AWV compliance, voluntary disclosures, and any related proceedings.
Further AWV Reporting Obligations
Beyond the primary reporting obligation under § 67 AWV, the AWV imposes further reporting requirements that must be carefully observed to avoid significant fines. In addition to reporting international payments, the following must also be declared:
- Assets held by German residents abroad
- Assets owned by foreign individuals or entities in Germany
- Receivables and liabilities
- Reporting obligations for financial institutions
As of January 2025, travel payments made using foreign banknotes or traveller’s cheques in foreign currency are no longer subject to reporting. Additionally, the reporting obligation under Annex Z13 of the AWV has been abolished without replacement, and § 70 AWV has been updated accordingly.
Schlun & Elseven Rechtsanwälte: Your Reliable Support for Foreign Trade Transactions
At Schlun & Elseven Rechtsanwälte, our legal team provides guidance on all aspects of AWV compliance. We assist clients with preparing the necessary documentation, challenging fine proceedings, and submitting voluntary self-disclosures where necessary. Whether you need preventive legal advice or representation in a compliance matter, we are here to protect your rights and interests at every stage.
An Overview: Frequently Asked Questions about AWV Reporting Obligation
Yes, every payment over 50,000 euros must be reported separately. If several smaller payments are made that together exceed this limit, they may also be subject to reporting.
Exemptions apply, among other things, to payments of less than EUR 50,000, payments for the import/export of goods or short-term loans with a term of less than 12 months.
Yes, if they exceed the reporting threshold of 50,000 euros and do not fall under an exception. Whether an exception applies always depends on the individual case.
That depends on the type of transaction. Commercial payments or large individual payments may have to be reported. Here, too, it depends on the exact circumstances of the individual transaction.
Yes, if these payments are made internationally and exceed the reporting limit of 50,000 euros.
Violations can be penalised with fines of up to 30,000 euros. In addition, each unreported payment is considered a separate administrative offence.
The reporting obligation, as such, is not subject to a statute of limitations. However, the authorities can demand a fine for failure to do so. According to. § 31 of the Administrative Offences Act, the limitation period is 3 years.
Legal advice is advisable, particularly in the case of impending fines, but also in the case of complex transactions and uncertainties regarding the reporting obligation.
Practice Group: Compliance
Practice Group:
Compliance
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