Under Section 261 of the German Criminal Code (StGB), money laundering refers to concealing the true origin of assets derived from an unlawful act. Anyone who hides such an object, conceals its origin, or – in order to frustrate its discovery, its confiscation, or the investigation of its origin – exchanges, transfers, or moves it, procures it for themselves or a third party, keeps it, or uses it is liable to punishment (Section 261 (1) and (2) StGB). The core is always the link to a predicate offense: Without an asset derived from an unlawful act, there is no money laundering.
For companies, the criminal law definition is the starting point of the entire framework of obligations. Section 1 (1) of the German Money Laundering Act (GwG) expressly refers to criminal law: "Money laundering within the meaning of this Act is a criminal offense under Section 261 of the Criminal Code."
A predicate offense is the criminal offense from which the later "laundered" asset originates. Any act that fulfills the statutory elements of a criminal law is considered an unlawful act (Section 11 (1) no. 5 StGB). Since the reform of the criminal law on combating money laundering, in force since March 18, 2021, the so-called all-crimes approach has applied: The former exhaustive catalog of qualifying predicate offenses has been abolished. Since then, in principle any criminal offense – from fraud to tax evasion to drug trafficking – can be a predicate offense for money laundering.
This expansion has increased the practical significance of the offense: Anyone who accepts assets of doubtful origin must take into account a possible link to any predicate offense.
The basic offense is punishable by imprisonment of up to five years or a fine; even the attempt is punishable. If the offender is an obliged entity under Section 2 GwG, the law provides for imprisonment of three months to five years. In especially serious cases – for example when acting on a commercial basis or as a member of a gang – the range extends from six months to ten years. Anyone who recklessly fails to recognize the illegal origin can be punished with imprisonment of up to two years or a fine (Section 261 (5) and (6) StGB).
The reporting statistics show how relevant the topic remains: In 2024, the German Financial Intelligence Unit (FIU) received 265,708 suspicious activity reports. The criminal law definition is the basis on which companies are able to classify grounds for suspicion in the first place. How "dirty" money enters the legal cycle is explained in the overview of the three stages of money laundering; which training obligations for employees follow from this is shown in the article on the GwG training obligation under Section 6 GwG. The Anti-Money Laundering topic page offers a bundled introduction to all Bridgly articles on the subject.
No. Cash plays a role above all in the first stage of money laundering, but Section 261 StGB covers any asset derived from an unlawful act – including deposit money, crypto assets, real estate, company shareholdings, or goods. What matters is not the form of the asset but its link to a predicate offense; even the mere attempt is punishable.
Since March 18, 2021: The act to improve the fight against money laundering under criminal law abolished the former exhaustive catalog of predicate offenses and replaced it with the so-called all-crimes approach. Previously, only a limited catalog of serious criminal offenses qualified as predicate offenses; since then, in principle any criminal offense – from fraud to tax evasion to drug trafficking – can be a predicate offense for money laundering.
The basic offense is punishable by imprisonment of up to five years or a fine; even the attempt is punishable. If the offender is an obliged entity under Section 2 GwG, a range of three months to five years applies; in especially serious cases – for example when acting on a commercial basis or as a member of a gang – the penalty ranges from six months to ten years' imprisonment.
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