It is the goal of BaFin to prevent the misuse of the financial system for the purpose of money laundering, terrorist financing and other criminal offences, which can lead to a threat to assets of an institute. Bodies in the financial sector subject to the money laundering supervision of BaFin include not just credit institutions, financial services institutions and payment institutions, but also life insurance undertakings, German asset management companies (Kapitalverwaltungsgesellschaften) and persons and companies that sell or convert e-money. BaFin is the only competent authority in this field (whereas Deutsche Bundesbank does not have AML/CFT-competence).

BaFin ensures that the companies and persons under its supervision implement any statutory obligations adopted for this purpose. These obligations are derived from the Money Laundering Act (Geldwäschegesetz – GwG), the Banking Act (Kreditwesengesetz – KWG), the Insurance Supervision Act (Versicherungsaufsichtsgesetz – VAG), the Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz – ZAG) or the Investment Code (Kapitalanlagegesetzbuch – KAGB).

a.) Department for the prevention of money laundering
In order to simplify this process, since 2003 BaFin has bundled all responsibilities relating to these tasks under the Department for the Prevention of Money Laundering, which carries out money laundering supervision of all institutions, companies and persons specified under section 50 of the GwG. The department is also responsible for supervision of the implementation of statutory regulations to prevent the commission of other criminal offences within the meaning of section 25h of the KWG.

b.) International cooperation
The Department for the Prevention of Money Laundering also represents BaFin in various international and European bodies, such as the Financial Action Task Force on Money Laundering – FATF or the Sub-Committee on Anti Money Laundering (AMLC), a sub-committee of the Joint Committee of the European Supervisory Authorities.