Find out about the changes/facilitations in the Foreign Trade and Payments Ordinance (AWV) that came into force on January 1, 2025:
The Foreign Trade and Payments Ordinance (AWV) contains various reporting obligations in cross-border capital and payment transactions to the German Bundesbank. These serve to statistically record relevant transactions as well as receivables and assets for Germany’s balance of payments. This affects domestic (i.e. German) private individuals, commercial enterprises, public bodies and financial institutions. The Deutsche Bundesbank is obliged to keep all individual data strictly confidential. Individual details may neither be published nor passed on to other bodies, e.g. tax offices. Violations of the reporting obligations are administrative offenses that can be punished with fines of up to 30,000 euros in accordance with Section 19 (6) of the Foreign Trade and Payments Act (AWG).
Who is affected?
This affects residents, i.e. domestic (i.e. German) private individuals, commercial enterprises, public bodies and financial institutions. Residents in this context are private individuals who have a residence in Germany or usually stay in Germany most of the time per year, no matter what nationality they have. For example, a German who has been living abroad for more than one year is to be regarded as a “non-resident”, whereas a foreign national who has been living in Germany for more than one year is to be regarded as a “resident”. A subisiary of a foreign company is also affected if its legal seat or the place of management is in Germany.
Confidentiality and fines in case of non-compliance
The Deutsche Bundesbank is obliged to keep all individual data strictly confidential. Individual details may neither be published nor passed on to other bodies, e.g. tax offices. Violations of the reporting obligations are administrative offenses that can be punished with fines of up to EUR 30,000 in accordance with Section 19 (6) of the Foreign Trade and Payments Act (AWG).
Increase in the reporting thresholds for foreign payments
Residents now only have to report foreign payments to the German Bundesbank from EUR 50,000 (previously EUR 12,500). This applies to both incoming and outgoing payments. Interest payments for foreign bonds and money market instruments are now completely exempt from the reporting obligation. Payments for the granting, taking out or repayment of loans with a maximum term of twelve months and payments for the import, export or transfer of goods are still not subject to reporting requirements.
Reporting obligations for existing assets
Reporting obligations for existing assets, receivables and encumbrances remain in place. However, claims and sales now only have to be reported from EUR 6 million (previously EUR 5 million). The assets of residents abroad or foreigners in Germany must be reported if the sum of foreign receivables or the sum of foreign liabilities exceeds EUR 6 million at the end of a month. In this respect, the threshold has been doubled; previously, assets amounting to EUR 3 million had to be reported. In addition, the previously optional information on the balance sheet total, annual turnover and number of employees is now confirmed for German groups. Cross-border shareholdings of German residents must be reported if the share of capital or voting rights is 10% or more and the investment object exceeds a balance sheet total of EUR 6 million (or the equivalent if reported in another currency).
Obligation to report crypto assets
Cryptocurrencies are now also explicitly included in the reporting obligations in order to avoid ambiguity. Although such transactions were already considered reportable in certain cases before the amendment, the clarification is intended to provide additional transparency and avoid time-consuming queries. Four new codes (804, 814, 824 and 834) have also been introduced to ensure a more precise allocation of crypto assets to balance of payments items.
Further information can be found here: FAQ and notices | Deutsche Bundesbank
