General Due Diligence Obligations

(1) The general due diligence obligations are:
1. the identification of the contracting party and, where applicable, of the person acting for the contracting party in accordance with section 11(4) and section 12(1) and (2), and checking whether the person acting for the contracting party is authorised to do so,
2. establishing whether the contracting party is acting for a beneficial owner and, where this is the case, identifying the beneficial owner in accordance with section 11(5) and section 12(3) and (4); this includes, in cases where the contracting party is not a natural person, the obligation to ascertain the ownership and control structure of the contracting party by appropriate means,
3. obtaining and assessing information on the purpose and intended nature of the business relationship, insofar as this information does not already clearly follow, in the individual case, from the business relationship,
4. establishing, by appropriate risk-oriented procedures, whether the contracting party or the beneficial owner is a politically exposed person, a family member, or a person known to be a close associate, and
5. the ongoing monitoring of the business relationship, including the transactions carried out in the course of it, to ensure that those transactions are consistent
a) with the documents and information held by the obliged entity on the contracting party and, where applicable, on the beneficial owner, on their business activity and customer profile, and
b) where necessary, with the information held by the obliged entity on the origin of the assets; in the course of ongoing monitoring, obliged entities shall ensure that the relevant documents, data or information are updated at appropriate intervals, having regard to the risk concerned.
(2) The specific scope of the measures under subsection (1), nos. 2 to 5 must correspond to the respective money laundering or terrorist financing risk, in particular as regards the contracting party, the business relationship or the transaction. In doing so obliged entities shall take particular account of the risk factors set out in Annexes 1 and 2. In assessing the risks they shall further take account of at least
1. the purpose of the account or of the business relationship,
2. the amount of assets deposited by customers or the scale of the transactions carried out, and
3. the regularity or the duration of the business relationship. Obliged entities must, on request, demonstrate to the supervisory authorities that the scope of the measures they have taken is appropriate having regard to the money laundering and terrorist financing risks.
(3) The general due diligence obligations must be fulfilled by obliged entities:
1. when establishing a business relationship,
2. in the case of transactions carried out outside a business relationship, where these are
a) transfers of funds within the meaning of Article 3, point 9 of Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006 (OJ L 141, 5.6.2015, p. 1) and the transfer of funds amounts to EUR 1,000 or more,
b) the carrying out of any other transaction with a value of EUR 15,000 or more, or
c) crypto-asset transfers that, at the time the crypto-asset transfer is carried out, correspond to a value of EUR 1,000 or more,
3. irrespective of any exceptions, exemptions or threshold amounts under this Act or other Acts, where facts exist that indicate that
a) assets connected with a transaction or business relationship are the object of money laundering, or
b) the assets are connected with terrorist financing,
4. where there is doubt as to whether information collected under provisions of this Act on the identity of the contracting party, on the identity of a person acting for the contracting party, or on the identity of the beneficial owner, is accurate.
(3a) Obliged entities must fulfil the general due diligence obligations in respect of all new customers. In respect of existing business relationships they must fulfil the general due diligence obligations at an appropriate time on a risk-based approach, in particular where
1. material circumstances relating to a customer change,
2. the obliged entity is legally obliged to contact the customer during the relevant calendar year in order to review any relevant information on the beneficial owner, or
3. the obliged entity is so obliged under Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC (OJ L 64, 11.3.2011, p. 1).
(4) Where obliged entities under section 2(1), nos. 3 to 5 accept cash in the provision of payment services under section 1(1), second sentence of the Payment Services Supervision Act, they shall fulfil the general due diligence obligations under subsection (1), nos. 1 and 2.
(5) Obliged entities under section 2(1), no. 15 shall fulfil the general due diligence obligations for transactions in the form of winnings or stakes of a player amounting to EUR 2,000 or more, unless the gambling is offered or intermediated over the internet. The identification obligation may also be fulfilled by identifying the player on entry to the casino or other physical gambling venue, provided the obliged entity additionally ensures that transactions with a value of EUR 2,000 or more, including the purchase or redemption of gaming chips, can be attributed to the player concerned.
(6) Obliged entities under section 2(1), no. 14 shall fulfil the general due diligence obligations in respect of
1. the intermediation of contracts of purchase, and
2. the intermediation of tenancy or lease contracts for transactions with a monthly net cold rent or net cold lease payment of at least EUR 10,000.
(6a) Obliged entities under section 2(1), no. 16 shall fulfil the general due diligence obligations in respect of
1. as dealers in goods, the following transactions:
a) transactions involving works of art with a value of at least EUR 10,000,
b) transactions involving high-value goods under section 1(10), second sentence, no. 1 in respect of which they make or receive cash payments, themselves or through third parties, of at least EUR 2,000, or
c) transactions involving other goods in respect of which they make or receive cash payments, themselves or through third parties, of at least EUR 10,000, and
2. as art intermediaries and art storage providers, transactions with a value of at least EUR 10,000.
(7) For obliged entities under section 2(1), nos. 4 and 5 that are active in the issuing of e-money, section 25i(1) of the Banking Act applies, on the basis that only the obligations under subsection (1), nos. 1 and 4 need be fulfilled. Section 25i(2) and (4) of the Banking Act applies correspondingly.
(8) Insurance intermediaries under section 2(1), no. 8 who collect premiums for an insurance undertaking under section 2(1), no. 7 shall notify that insurance undertaking where premium payments are made in cash and exceed the amount of EUR 15,000 within a calendar year.
(8a) Insofar as an obliged entity under section 2(1), no. 10, acting as an employed in-house lawyer or an employed in-house patent attorney, or an obliged entity under section 2(1), no. 12, acting as an employed in-house tax adviser, provides services for an undertaking that is itself an obliged entity under section 2(1), the obligations under subsection (1) fall upon that undertaking.
(9) Where the obliged entity is not able to fulfil the general due diligence obligations under subsection (1), nos. 1 to 4, the business relationship may not be established or continued, and no transaction may be carried out. Insofar as a business relationship already exists, it must be terminated by the obliged entity, notwithstanding other statutory or contractual provisions, by notice of termination or otherwise. The first and second sentences do not apply to obliged entities under section 2(1), nos. 10 and 12 where the services to be provided are legal advice or representation in legal proceedings, unless the obliged entity knows that the legal advice or representation in legal proceedings is or was knowingly used for the purpose of money laundering or terrorist financing. For as long as the contracting party fails to comply with its obligation under section 12(4), first sentence, an association with its registered office abroad fails to comply with its notification obligation under section 20(1), second and third sentences, or a trustee resident or established outside the European Union fails to comply with its notification obligation under section 21(1), second sentence, second alternative and third sentence, the notary must refuse to notarise the transaction; section 15(2) of the Federal Code for Notaries applies correspondingly in that respect.