The European anti-money laundering package will impose far-reaching new requirements on law firms. Even though the new EU Anti-Money Laundering Regulation will not apply until 10 July 2027, the German Federal Bar Association (BRAK) makes it clear that law firms should address their future obligations at an early stage. In a new interpretative guide, the BRAK explains what changes can be expected compared to the current German Money Laundering Act (GwG) and where it believes action is already needed.
What is the new BRAK interpretation guide?
The German Federal Bar Association has published a new interpretative guide to the EU Money Laundering Regulation (EU Regulation 1624/2024). The paper was prepared by the BRAK Committee on Money Laundering Prevention and serves to classify the upcoming European requirements for legal practice.
The aim of the interpretation guide is to highlight the key differences between the current German Money Laundering Act (GwG) and the EU Money Laundering Regulation, which will be directly applicable in future. At the same time, it is intended to provide guidance to lawyers on the new or stricter obligations that will have to be observed in future. The BRAK points out that the document is to be continuously updated – in particular with delegated acts, technical regulatory standards (RTS) and guidelines from the newly created European Anti-Money Laundering Authority (AMLA) and the European Commission.
The complete document can be found on the website of the BRAK.
Why law firms should act now
Even though there is still time until 2027, the BRAK recommends addressing the new requirements at an early stage. Setting up effective risk management, adapting internal law firm processes and introducing standardised KYC and documentation procedures are time-consuming and cannot be implemented at short notice. Law firms that start early can adapt their processes step by step and avoid unnecessary time and implementation pressure shortly before the new regulations come into force.
How Regpit supports law firms in preparing for the EU Money Laundering Directive
Regpit supports law firms in adapting their AML processes to upcoming EU requirements today. With our digital platform for money laundering prevention, you can map all processes such as client identification, risk management and employee training. This allows law firms to future-proof themselves at an early stage and be well prepared for the requirements of the EU Money Laundering Directive.
English (UK)