Anti-Money Laundering Due Diligence Requirements Explained (Dealers in Goods, Brokers, Cash Transactions)

Anyone who accepts high cash payments in commercial trade, or who works as a real estate broker or in the art trade, may be an obligated entity under Germany's Anti-Money Laundering Act (Geldwäschegesetz, GwG), with specific organizational and reporting obligations.

In brief: Sections 2, 4, and 10 of the GwG make dealers in goods, real estate brokers, and the art trade, among others, obligated entities once certain cash or value thresholds are reached (cash payments from €10,000, from €2,000 for precious metals). Affected companies must set up risk management, identify contracting parties, train staff, register on the goAML portal, and report suspicious cases to the FIU without delay.

Who Is Affected by the AML Due Diligence Requirements?

Obligated entities under Section 2 GwG include dealers in goods, real estate brokers, and businesses in the art trade, as soon as they touch the statutory cash or value thresholds in the course of their business. Anyone who regularly accepts cash payments of €10,000 or more, or trades precious metals worth €2,000 or more, typically falls within the scope of the law. This affects not only classic dealers in antiques, art, or jewelry, but in principle every commercial seller of high-value goods who accepts cash, for example dealers in vehicles, furniture, or electronics. Real estate brokers also count as obligated entities regardless of the payment method, as soon as they broker purchase or rental agreements. The legislature justifies including these industries on the grounds that high-value cash transactions carry an elevated money laundering risk, because the origin and flow of the money are harder to trace here than with cashless payments. A tool such as Company Audit shows you exactly which of these obligations apply to your company.

What Do Affected Companies Specifically Have to Do?

Under Sections 4 and 10 GwG, obligated entities must implement several organizational measures, from risk analysis to reporting to the Financial Intelligence Unit (FIU). These obligations interlock: without documented risk management, there is no basis for properly identifying contracting parties, and without trained staff, grounds for suspicion often go undetected in practice. Specifically, the following steps result:

1. Check whether the company is an obligated entity (trading in goods, broker activity, art trade, high cash payments).
2. If affected, establish internal risk management with a risk analysis.
3. Identify and document contracting parties once the threshold values are reached.
4. Train staff and register on the goAML portal.
5. Report suspicious cases electronically to the FIU without delay.

These five steps build on each other: first the assessment of whether the company is affected, then the organizational foundation with a risk analysis, followed by the ongoing identification of contracting parties, and finally the reporting in day-to-day business. Identification generally involves recording and documenting the contracting party's data as soon as a transaction reaches the relevant threshold. Registration on the goAML portal is not a one-time formality, but the technical prerequisite for suspicious activity reports to be submitted electronically to the FIU at all.

From What Amounts Do the Obligations Apply?

The central threshold values are a cash payment of €10,000 or more, or €2,000 or more for precious metal transactions. Anyone who consistently keeps cash payments below these limits, or settles payments by non-cash means, significantly reduces the GwG obligations, since obligated-entity status is tied to reaching these thresholds. For companies that only occasionally accept larger cash amounts, it is therefore worth looking at their own payment processes: if transactions above the threshold values can be switched to bank transfer or card payment, the organizational burden of the due diligence obligations often disappears entirely. From July 10, 2027, an EU-wide cash limit of €10,000 will additionally apply to commercial cash payments; affected companies should align their payment methods with this early on, rather than reacting only shortly before it takes effect.

What Are the Consequences of a Violation?

Violations of the due diligence and reporting obligations under Sections 43 et seq. GwG can be fined up to €150,000, and in aggravated cases up to €1 million. Particularly risky are a missing registration on the goAML portal, a failure to identify contracting parties, and delayed or entirely omitted suspicious activity reports to the FIU. Since the amount of the fine depends on the individual case, affected companies should not just go through the five implementation steps once, but regularly check whether risk management, identification processes, and training still match current business operations.

Frequently Asked Questions

Does an Art Dealer Also Count as an Obligated Entity Under the GwG?

Yes. Under Section 2 GwG, the art trade is expressly included among obligated entities once the relevant cash or value thresholds are reached.

Do I Have to Register on the goAML Portal Even If No Suspicious Case Has Occurred Yet?

Yes, registration on the goAML portal is part of the organizational obligations under Section 4 GwG and is required regardless of whether a specific suspicious case has already been reported. It is the prerequisite for being able to report at all if the need arises.

How Do I Report a Suspicious Case?

Under Sections 43 et seq. GwG, suspicious cases must be reported electronically to the Financial Intelligence Unit (FIU) without delay, as soon as a corresponding indication exists.

Will the Cash Limit Change in the Future?

Yes: from July 10, 2027, an EU-wide cash limit of €10,000 will apply to commercial cash payments, which affected companies should prepare for early on.

Can I Avoid the GwG Obligations Through Cashless Payments?

Anyone who consistently keeps cash payments under €10,000, or settles them by non-cash means, significantly reduces the GwG obligations, since the relevant thresholds are then generally not reached. Doing away with cash entirely is the simplest way to fall outside the scope of the law.

Source: Sections 2, 4, 10, 43 GwG. This article is general information and does not replace individual legal advice. As of July 2026.