Questions about the law on tracing profits from serious crimes (Money Laundering Act - GwG)
What is money laundering?
Money laundering is the transfer of illegally generated profits into the legal economic cycle. Money laundering is a criminal offense according to § 261 StGB. Goods traders are not only obliged to prevent money laundering, but it also serves the interests of our customers. The prevention of money laundering is also a major concern of Fritz Rudolf Künker GmbH & Co. KG is also very important to us. Fritz Rudolf Künker GmbH & Co. KG intends to ensure that the legal requirements are met in full so that our customers can be sure that they are protected from unfair business practices.
Is Fritz Rudolf Künker GmbH & Co. KG obliged to comply with the Money Laundering Act?
Fritz Rudolf Künker GmbH & Co KG is a trader in goods (Section 1 (9) GwG and Section 2 (16) GwG) who trades in high-value goods (Section 1 (10) GwG) and offers them in (eLive) auctions. It is therefore subject to the obligations of the Money Laundering Act.
Are the employees of Fritz Rudolf Künker GmbH & Co KG regularly trained?
Yes, our employees receive regular training and are obliged to implement the legal and internal requirements for the prevention of money laundering. Our employees are obliged to be reliable (§ 1 para. 20 GwG).
What duties of diligence must Fritz Rudolf Künker GmbH & Co. KG have to fulfill?
In order to prevent money laundering, Fritz Rudolf Künker GmbH & Co. KG maintains a risk management system (§ 4 GwG) with various internal security measures (§ 6 GwG) and is obliged to exercise due diligence with regard to customers, such as the identification of the contractual partner (§ 10 GwG).
What duties of diligence does Fritz Rudolf Künker GmbH & Co. KG have towards its customers?
The top priority is the "Know Your Customer" principle. Both when buying coins, medals or bullion and when selling them, Fritz Rudolf Künker GmbH & Co. KG is obliged to scrutinize the background of its customers. The statutory duties of care in relation to customers can be found under § 10 GwG. This includes in particular the identification of the business partner (Section 10 para. 1 no. 1 GwG).
Under which circumstances is identification obliged?
Fritz Rudolf Künker GmbH & Co KG is subject to an identification obligation depending on certain value limits (Section 10 (6a) GwG). Certain data must be collected for identification purposes (§ 11 para. 4 GwG). The accuracy of the information is checked using an identification document (§ 12 GwG), which must also be copied.
If circumstances arise during or before the conclusion of a transaction that could give rise to suspicion of money laundering, irrespective of a value limit, identification must be requested regardless of the value.
In the case of a sale (consignment for (eLive) auction) to Künker, it is obligatory for us to request proof of identification from as little as zero euros. In the event of the sale of an incorrect coin, Künker will be given the opportunity to report the material defect (e.g. incorrect coin) to the customer and, if necessary, to insist on reversal.
As a customer, am I obliged by Fritz Rudolf Künker GmbH & Co. KG to hand over data on request?
Yes, Fritz Rudolf Künker GmbH & Co KG is obliged to identify customers and to verify the data collected by means of an ID card. A copy of the ID card must also be made and stored (Section 8 (2) sentence 2 GwG). They are legally obliged to make this data available to employees on request (Section 11 (6) GwG).
What consequences can a refusal to provide identification have?
If identification is refused, this is an indication of suspected money laundering and Fritz Rudolf Künker GmbH & Co. KG may be obliged to submit a suspicious activity report (§ 43 GwG) to the Financial Intelligence Unit (FIU). We may also reject a possible legal transaction.
Why are payments by a third party associated with increased documentation effort on the part of Fritz Rudolf Künker GmbH & Co KG?
Invoices should always be paid by the invoice recipient (name on the invoice). Only in absolutely exceptional cases and with comprehensible justification can we accept payments by third parties. However, we must then also identify the third party and make further inquiries. This leads to an increased documentation effort.
We ask you to avoid payments via third parties!
If you have any questions, please contact Mr. Roland Trampe.