750 billion dollars in money laundering and illicit funds flowed through the European financial system in 2023, accounting for a quarter of the global flow of 3.1 trillion dollars. These are the findings of the study „Financial Crime Insights: Europe“ by Nasdaq subsidiary Verafin, which specialises in fraud detection and anti-money laundering technology. According to the study, Germany accounts for 17% of the volume at just under 130 billion dollars, which corresponds to 3.07% of Germany's gross domestic product (GDP).

This makes Germany the European leader when it comes to the absolute volume of illegal money flows, and just behind the UK and Italy in third place when it comes to relative figures. The British account for 3.12% of their GDP, or almost 100 billion dollars, while the Italians account for 3.09% of their economic power, or 66 billion dollars. Finland comes off best, with 1.78% of its GDP, or 5 billion dollars.

Germany has a reputation as a money laundering paradise. As the largest European economy and a major financial centre, it plays a prominent role on the continent. Germany is also particularly susceptible to money laundering due to fragmented supervisory structures, especially in the non-banking sector, and the more frequent use of cash than in many other European countries.

According to the study, of the almost 130 billion dollars in illegal cash flows attributed to activities in Germany, 30 billion is attributable to drug trafficking, 14 billion to human trafficking, and 85 billion dollars to other criminal offences such as corruption and fraud. Terrorist financing accounts for only a fraction of this at 530 million dollars.

Meanwhile, the European Commission recently announced measures to strengthen internal security in the EU, in view of the threat posed by countries such as Russia, which are linked to criminal networks. The proposals include increased access to the financial transactions of suspects, tougher sanctions, and improved methods to combat money laundering and terrorist financing.