Shadow financial center Germany

The report Shadow Finance Center Germany, which highlights Germany's sensitive role, particularly in the area of money laundering, is published by Global Policy Forum Europe, Misereor, Tax Justice Network and WEED in cooperation with the Tax Justice Network. At the same time, the Tax Justice Network's new Shadow Finance Index was published today, in which Germany is ranked 8th (see also the Country Report).

The report and the index highlight the weaknesses of current money laundering legislation that make Germany a favorable place for money launderers. It underlines the need for a policy change by the new German government. It is estimated that between 29 and 57 billion euros are laundered in Germany every year. The sources of this enormous sum include corrupt politicians from countries in the global South as well as organized crime.

The report also highlights shortcomings in the area of tax policy.The introduction of the flat-rate withholding tax on capital income represents a step backwards in terms of transparency and tax justice and makes it easier for citizens of other countries to hide assets in Germany from their own tax authorities. In addition, Germany's aggressive double taxation policy contributes to depriving countries in the global South of urgently needed income.

Germany must also ensure greater transparency for its internationally active companies.This is the only way to ensure that they contribute their fair share to the financing of the poor and poorest countries of the South - but also to urgently needed investments in Germany.Finally, the report highlights the need for a public register of the true owners of letterbox companies. The German company register performs poorly internationally: neither the legal owners nor the annual financial statements are published reliably for all company forms.