The 2,000 euro limit is too lax for the Federal Council. The Mediation Committee will now presumably decide whether the limit for anonymous gold purchases will even drop to 1,000 euros next year.
Anonymity limit for gold purchases
Will it be even harder than planned for gold traders and private gold investors in Germany? The “Law on the Implementation of the Amendment Directive to the Fourth EU Money Laundering Directive” recently passed by the Bundestag was submitted to the Bundesrat. It also includes the plan to lower the limit for anonymous precious metal purchases from the current 10,000 euros to only 2,000 euros from next year. And the project encounters political resistance, but only with regard to its sharpness.
Federal Council intervenes
The Committee for Internal Affairs of the Federal Council has now recommended that the Federal Council demand that the Mediation Committee be convened. This is because it continues to call for even stricter regulation of trading in gold, silver and other precious metals. In point 12 of the committee recommendation it says literally: “The Bundesrat again suggests lowering the threshold value in § 10 paragraph 6a number 2 GwG to 1,000 euros. In this respect, the Federal Council draws attention to the very high susceptibility of the gold trade to money laundering, at least as far as gold products are paid for in cash”.
EU requirements exceeded anyway
The Federal Council had already called for a lower threshold for gold purchases requiring identification in the first bill: Buying gold anonymously: Federal Council demands 1,000 Euro limit! With the reduction decided by the Bundestag, however, Germany has even exceeded the EU requirements (buy gold anonymously: Germany tops EU requirements). The current bill has been criticised by Bundesrat committees on further points. The document is available on the Bundesrat’s website.
According to EU guidelines, Germany must bring the law into force by 10 January 2020 at the latest. It will take effect in Germany as soon as it is published in the Federal Law Gazette. To be more precise, if the law does not specify a specific date for its entry into force, it will automatically apply from the 14th day after the Federal Law Gazette is published.