2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Germany


2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Germany

Fund Relations

(As of April 30, 2017; unless specified otherwise)

Mission: May 4–16, 2017 in Berlin, Bonn, Frankfurt, and Nuremberg. The concluding statement of the mission is available at


Staff team: Ms. Detragiache (head), Messrs. Natal and Vandenbussche, and Mses. Mineshima and Pereira (all EUR).

Country interlocutors: Parliamentary State Secretary Meister, Bundesbank President Weidmann, officials from the Federal Chancellor’s office, the Finance, Economic Affairs, Labor, and Environment Ministries, the Bundesbank, the Federal Office for Migration and Refugees. Mr. Meyer (OED), Mr. Thomsen (EUR), and Ms. Kozack (STI) participated in the discussions. Additional meetings took place with representatives from the social partners, the banking and insurance sectors, think tanks, and academics.

Fund relations: The previous Article IV consultation discussions took place during April–May 2016 and the staff report was discussed by the Executive Board on July 24, 2016. The Executive Board’s assessment and staff report are available at http://www.imf.org/external/pubs/cat/longres.aspx?sk=44029.0

Membership Status: Joined August 14, 1952; Article VIII.

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Outstanding Purchases and Loans: None

Financial Arrangements: None

Projected Payments to Fund (SDR Million; based on existing use of resources and present holdings of SDRs, as of April 30, 2017):

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1/ When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

Exchange Rate Arrangement

Germany’s currency is the euro, which floats freely and independently against other currencies.

Germany is an Article VIII member and maintains an exchange system free of restrictions on payments and transfers for current international transactions. It maintains measures adopted for security reasons, which have been notified to the Fund for approval in accordance with the procedures of Decision 144 and does so solely for the preservation of national or international security.

Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT)

Germany was last assessed against the previous AML/CFT standard in 2009. Some shortcomings were identified inter alia with respect to the money laundering (ML) and terrorist financing (TF) offenses, and AML/CFT preventive measures (including the reporting of suspicious transaction requirements, and customer due diligence, CDD, requirements). In recent years, Germany has introduced significant reforms to enhance its AML/CFT regime. It notably criminalized self-laundering and immobilized bearer shares, enhanced domestic cooperation, and improved the supervisory framework for designated non-financial business and professions (DNFBPs) and the risk analysis model applied by BaFin for AML/CFT supervision. Onsite visits to financial institutions and DNFBPs have increased. Germany made progress in addressing the 2016 FSAP’s main recommendations on AML/CFT. BaFin notably increased by 30 the staff devoted to AML/CFT supervision, and established new units specifically dedicated to the supervision of major banks with cross-border activities. Within the EU, the German authorities actively support enhanced cooperation between AML/CFT supervisors. BaFin has started to establish its own audit teams (along external audit teams), increased the number of its onsite inspections of banks, and is planning on-site inspections to be carried out by BaFin-only teams in the medium term. It is also adjusting its AML/CFT supervisory framework in line with the European Supervisory Authorities’ joint November 2016 guidelines on risk-based supervision. Furthermore, Germany is working on the implementation of the Fourth EU AML Directive requirement to establish a register containing information on beneficial ownership information of corporate and other legal entities, and of express trusts and legal arrangements having a structure or functions similar to trusts. A draft law implementing this requirement is scheduled to enter into force in June 2017, and to allow for the register to be accessible by competent authorities in December 2017.

The next assessment of Germany’s AML/CFT framework is tentatively scheduled to take place in 2021.

Statistical Issues

(As of June 13, 2017)

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Germany: Table of Common Indicators Required for Surveillance

(As of May 22, 2017)

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Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Pertains to contribution to EMU aggregate.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition

Includes external gross financial asset and liability positions vis-a-vis nonresidents.

Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA)

Reflects the assessment provided in the data ROSC (published on January 18, 2006, and based on the findings of the mission that took place during July 5–20, 2005) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning methodological soundness, namely, (i) concepts and definitions, (ii) scope, (iii) classification/sectorization, and (iv) basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).

Same as footnote 9, except referring to international standards concerning accuracy and reliability, namely, (i) source data, (ii) assessment of source data, (iii) statistical techniques, (iv) assessment and validation of intermediate data and statistical outputs, and (v) revision studies.