Cross-border payments
Reports about cross-border payment transactions are of great importance for the compilation of the balance of payments, thus the overview of money flows in and out of Germany. The reports provide comprehensive information about German foreign trade that is useful for the economic and foreign exchange policies as well as for trade associations and businesses.
All cross-border payments for services, gifts, donations or transactions involving securities, cryptocurrencies or fixed-term deposits that have maturities of more than 12 months and exceed the exemption threshold of €12,500 have to be reported to the Deutsche Bundesbank. According to Section 11 of the Foreign Trade Act (Außenwirtschaftsgesetz, AWG) in conjunction with Sections 67 ff. of the Foreign Trade Ordinance (Außenwirtschaftsverordnung, AWV), this applies in equal measure for incoming payments from foreigners as well as for outgoing payments to foreigners. The foreigner status should not be based on nationality. The crucial factor is the registered office or domicile of the recipient or the sender. Individual payments that fall below the €12,500 threshold are not reportable. It is however not permissible to divide up larger payments in order to circumvent the reporting obligation.
Please note: The reporting requirement does not apply to mere account transfers between own accounts and loans or fixed-time deposits with a maturity of less than 12 months. Payments for the import and export of goods are likewise not relevant as these would in any case already be declared to customs.
The report
In order to be able to submit reports, first of all, you have to apply for a reporting number. To this end, there is an application form available on the Deutsche Bundesbank website. Upon receipt of the reporting number, it is then possible to register in the Allgemeines Meldeportal Statistik (general statistics reporting portal, abbreviated in German to: AMS). The reports can be submitted here.
Please note: The Deutsche Bundesbank allows a simplified procedure for private individuals who only occasionally make or receive payments to or from foreigners and, in doing so, exceed the reporting thresholds. By way of exception, such individuals are also able to submit their report by telephone via the free hotline 0800 1234 111.
When submitting a report, you should take note of the reporting deadline pursuant to Section 71 AWV. Payments arising from foreign trade have to be reported by the 7th calendar day of the following month. The reporting deadline for payments related to securities transactions and financial derivatives is even shorter, namely, the 5th calendar day of the following month. Subsequently, the reporting documentation has to be retained for three years.
Consequences in the case of infringements
Infringements of the reporting requirement (such as late reporting or a failure to report) may be classified as regulatory offences by the customs authorities and could lead to the imposition of fines. Under Section 19(6) AWG fines of up to €30,000 are possible.
Recommendation: If you have already forgotten to submit reports or if they were incorrect then these should now be submitted or corrected without delay.