BaFin means that the Federal Financial Supervisory Authority in Germany. They supervise credit institutions, insurance undertakings, financial services institutions, and asset management companies using the BaFin Germany database. It also represents German interests in international organizations. They have two offices in Bonn and Frankfurt is Main.
BaFin's primary responsibility is that the German financial system continues to function appropriately and try to remain competitive and stable, and preserve its integrity. It also ensures that the trust of investors and insurance policyholders in this system is maintained. They are tasked with that market operators conduct themselves fairly.
It operates in the public interest. The German financial system continues to function appropriately and remain competitive and stable, and that their integrity is preserved. As a result, the trust of investors and insurance policyholders in this system is saved. Financial supervision's objective is to ensure the German financial market's proper functioning, stability, and integrity. Bank customers, insurance policyholders, and investors should be able to trust the financial system. For that reason, BaFin seeks to ensure that market participants comply with the relevant laws.
Its goals are to prevent the misuse of the financial system for money laundering, terrorist financing, and other criminal offenses. Bodies subject to BaFin's money laundering control,
It is the only competent authority in this field (Deutsche Bundesbank does not have an AML/CFT-competence).
Customer Due Diligence (CDD) is the name given to companies' control procedures when making risk assessments for their customers. Customer Due Diligence (CDD) is one of the basic requirements of the AML approach; it allows potential customer risks to be identified and requires knowing the customer and its activities. CDD procedures are required by national and local regulations and are an essential component of Anti-Money Laundering (AML). Like other regulators, BaFin Germany has emphasized the importance of CDD procedures in AML laws and has some obligations for CDD. Organizations must administer CDD under AML responsibility, and also companies that fail to comply with these procedures may face AML penalties. According to BaFin's Customer Due Diligence Requirements, responsible organizations should be aware of the following factors to assess their risks.
Obliged entities must conform to the competent authorities upon request that the extent of the measures they have complied with is adequate based on money laundering and terrorist financing risk.