Crypto-Related Suspicious Activity Reports Hit Record High in Germany: FIU Annual Report Reveals 8% Rise in AML Analysis

Germany's Financial Intelligence Unit (FIU) has released its annual report for 2024, shedding light on key developments in anti-money laundering (AML) activities. Below is a detailed breakdown of the report based on its key sections.

Key Statistics and Trends

The Financial Intelligence Unit (FIU) of Germany reported significant trends in its 2024 annual report, particularly in the number of analysis reports issued and the total suspicious transaction reports (STRs) received.

Analysis Reports Issued

• The FIU issued a total of 87,731 analysis reports in 2024, marking an 8% increase from the 81,550 reports issued in 2023.

• This growth highlights the FIU's enhanced efficiency in consolidating multiple STRs into single, comprehensive analysis reports. This approach allows the FIU to focus on the most critical cases, even as the total volume of STRs declines.

Total Suspicious Transaction Reports (STRs) Received

• The total number of STRs received in 2024 dropped to 265,708, continuing a downward trend from 322,590 in 2023.

• This decline reflects the impact of the "Eckpunktepapier" ("Key Points Paper") introduced in 2023. This guideline, developed in collaboration with the Federal Financial Supervisory Authority (BaFin) and the Anti-Financial Crime Alliance (AFCA), provided clear criteria for identifying transactions that do not require reporting under Germany's Money Laundering Act (§43 GwG).

Key Figures from the Report

The following additional statistics from the FIU's 2024 operations provide a deeper understanding of its activities:

• Transactions Monitored: The 265,708 STRs received in 2024 involved approximately 1.7 million individual transactions, showcasing the scale of the financial activities under scrutiny.

• Immediate Measures: The FIU implemented 50 immediate measures in 2024, which included freezing suspicious funds or accounts. This figure represents a decrease from the 60 measures taken in 2023, primarily due to a single large-scale case in 2023 that required 23 measures.

• Feedback from Prosecutors: The FIU received 41,821 feedback reports from public prosecutors in 2024, a 21% increase from 34,502 in 2023. These reports included information about the outcomes of cases initiated based on FIU data, such as indictments, convictions, or case closures.

Crypto-Related AML Reports: A Growing Concern (Page 15-21, Figures 2-4)

The report emphasizes the challenges posed by new technologies and cryptocurrencies in AML efforts. In 2024, the FIU received 8,711 crypto-related STRs, representing a notable increase over previous years. Bitcoin remains the most frequently mentioned cryptocurrency in these reports, followed by Ethereum, XRP (Ripple), Tether, and Litecoin.

• Figure below depicts the trend in crypto-related STRs from 2020 to 2024, showing a steady rise from 5,234 in 2021 to 8,711 in 2024.

• Figure below highlights the proportion of crypto-related STRs within the total STR volume, which has risen to 3.3% in 2024, up from 2.8% in 2023.

The FIU attributes this growth to enhanced monitoring systems implemented by financial institutions and Crypto Asset Service Providers (CASPs). These systems flagged suspicious activities, such as transactions linked to darknet marketplaces, mixing services, and online crypto casinos.

Immediate Measures and Law Enforcement Feedback

The FIU implemented 50 immediate measures in 2024, down from 60 in 2023, due to an exceptional case in 2023 involving 23 measures in a single investigation. Despite this decrease, the FIU notes a 31% increase in immediate measures excluding the 2023 anomaly.

Law enforcement agencies provided 41,821 feedback reports to the FIU in 2024, a 21% increase from the previous year. These reports include outcomes of investigations initiated based on FIU data, such as indictments, convictions, and case closures.

International Cooperation and the AMLA Initiative

The establishment of the Anti-Money Laundering Authority (AMLA) in Frankfurt marks a milestone in EU-wide AML efforts. The FIU actively participates in AMLA's initiatives, which include harmonizing practices across EU member states and conducting joint analyses of cross-border cases.

The FIU's role in international cooperation is further highlighted by its involvement in initiatives like the Counter Terrorist Financing Taskforce Israel (CTFTI) and the Russia-Related Illicit Financial Flows (RRIFS) task force.

Strengthening the Foundation for Future AML Efforts

The FIU's 2024 annual report underscores the evolving landscape of financial crime, with cryptocurrencies and digital assets posing unique challenges.

By leveraging advanced analytics, fostering international collaboration, and refining its operational focus, the FIU aims to stay ahead of emerging threats in the fight against money laundering and terrorism financing.