Insights
AML Compliance – A Hidden Obstacle Many Companies Underestimate
A client once told us, “We thought the hardest part of entering Germany would be finding our first customers.” They were wrong.
The real challenge came from something they had underestimated: Anti-Money Laundering (AML) compliance.
Like many international businesses, they had purchased a shelf company to accelerate market entry. The paperwork was done, directors appointed, and everything looked ready. But when they tried to open a new bank account, the process stalled. The bank requested proof of Ultimate Beneficial Ownership (UBO) and detailed AML documentation. Weeks passed. The launch was delayed. Opportunities were lost.
This story is not unique. German banks and regulators apply strict AML rules, and even basic steps like opening bank accounts or tax registrations can grind to a halt if compliance is not properly managed. Transparency around ownership, source of funds, and corporate structure is mandatory. For foreign companies, the documentation burden can feel overwhelming without local guidance.
The lesson is clear: AML is not just a box to tick. It is a gatekeeper. Companies that prepare early by clarifying ownership, registering with the transparency register, and ensuring documentation flows smoothly will succeed faster.
At Greenfields, we help clients navigate AML from the start so that their market entry does not get stuck at the first hurdle. Compliance may not be glamorous, but in Germany, it is the key to unlocking the real opportunity.