Perhaps you wanted to transfer money abroad and saw “Observe AWV reporting obligation” when online banking or in a letter from your bank. Or someone told you that there is an obligation to report international transfers. The abbreviation AWV stands for the Foreign Trade and Payments Ordinance. It actually lays down a certain procedure if you send a specific amount of money from Germany abroad or receive money from another country. Find out here exactly what the Trade and Payments Ordinance (AWV) sets out in the reporting obligation, when it applies and what you need to take into account to ensure correct compliance with AWV reporting.
The important facts on AWV reporting
The crucial points
- You have to report payments to and from abroad above a certain amount to the Bundesbank.
- The AWV reporting obligation applies to amounts from EUR 12,500.
- Failure to comply may result in fines of up to EUR 30,000.
- Private individuals can carry out the reporting according to AWV by telephone.
What is the AWV reporting obligation?
Deutsche Bundesbank uses the AWV reporting to record important data for its foreign trade statistics in accordance with Section 11 of the Foreign Trade and Payments Act (AWG). Therefore, Section 67 of the Foreign Trade and Payments Ordinance sets out a reporting obligation that applies to transfers to and from Germany from EUR 12,500 or the equivalent in another currency. Companies and private individuals must report transfers above this amount to the Deutsche Bundesbank.
The Bundesbank determines how much money moves from Germany to abroad and vice versa and can prepare and publish corresponding balances of payments. The AWV reporting obligation applies to private individuals in the same way as it does to companies.
Who has to declare AWV reporting?
All German residents must comply with the reporting obligation when making a transfer abroad. This also includes those who do not have German citizenship, but whose usual place of residence, domicile or company headquarters is in the Federal Republic. Reporting obligation transfers also affect the receipt of money into foreign accounts for persons resident in Germany.
For which foreign transfers is there a reporting obligation?
The AWV reporting obligation applies if you make or receive a foreign transfer of more than EUR 12,500 (or the equivalent in another currency) in Germany.
Reporting to Deutsche Bundesbank in accordance with the Foreign Trade and Payments Ordinance (AWV) applies to the following payment methods:
- Transfers in euros (EUR) or other currencies
- Cash payments
- Cheques
- Direct debits
- Offsets and comparisons
- Contribution of assets and rights to companies, branches and business premises
This means: Even if you want to send cash and find the nearest Western Union location, amounts over EUR 12,500 apply as foreign transfers with reporting obligation.
How and when do I have to report a transfer abroad?
In order to comply with the reporting obligation for a transfer and avoid fines, you must know when and how to inform the Bundesbank.
Deadlines for AWV reporting
According to the Foreign Trade and Payments Ordinance (AWV), a reporting deadline applies until the seventh calendar day of the month following the international transfer. The time period in which you have to declare depends on the date on which you send or receive the transfer.
For example:
- You transfer money to France on 20 June.
- The deadline for registration is 7 July.
How do I go about reporting?
There are two main ways to comply with the reporting obligation for a transfer abroad to Deutsche Bundesbank: by telephone and electronically. Which type of reporting you need to use depends on who is sending or receiving the money.
Private individuals:
- Calling the reporting hotline of the Bundesbank on (0800) 1234-111 is sufficient.
- The call is free of charge and can be made on weekdays from 9am to 3pm.
- For reports from abroad you can use +49 6131 377 4790.
Companies:
- Electronic reporting online via the AMS portal of Bundesbank
- Upload XML or CSV files to submit multiple reports at once.
In principle, Bundesbank no longer accepts AWV reports in paper form Reporting forms on the website are for display purposes only.
What information do I need to complete the declaration?
Whether you submit the AWV report by telephone or via the online portal, you must always provide the same information. Errors may lead to delays. Therefore, make sure that your information is correct.
If you submit a declaration as an individual or company, the Bundesbank requires the following information:
- Full name of the person or company
- Country of origin (receipt) or destination country (send)
- Intended purpose of the money transfer
- Amount
- Registration number
- Contact details
Exceptions for AWV reporting
Besides all transfers under EUR 12,500 (or other currency equivalents) there are other exceptions where the AWV report obligation does not apply. This includes:
- Revenue from imported goods
- Payments received for exported goods
- Loans and deposits with a maturity of less than 12 months
- Pension receipt from abroad
- Paying for a subscription with a foreign provider
Where do I find information on the AWV reporting obligation?
Most banks display the message “Observe AWV reporting obligation” for online banking or on physical and digital account statements. This often happens with money transfers where the regulation does not apply at all.
Ultimately, the respective account holder is responsible for reporting incoming or outgoing international money transfers over 12,500 EUR. The bank is not obliged to declare this. Therefore, you may have to check for yourself whether a money transfer made or received by you or your company is subject to the AWV reporting obligation.
What happens if I do not observe the reporting obligation for transfers?
If you do not adhere to the AWV reporting terms or forget them completely, you are breaching the AWV reporting obligation and committing an administrative offence. This may incur a fine of up to EUR 30,000.
Late, forgotten, incomplete or incorrect reports can also result in penalties. An extension of the deadline is generally unlikely. If you miss the deadline by accident, it is best to call the Bundesbank as soon as possible to report a transfer abroad. You may possibly avoid a fine. Remember that you must report the month in which the transfer occurred, not the month in which your transfer reporting obligation is actioned.
Summary
The AWV reporting obligation applies for all transfers abroad or from a foreign account to Germany for amounts from EUR 12,500. It applies to private individuals and companies alike. If you do not action your reporting obligation for a foreign transfer, you risk high penalties. However, for private individuals, a simple call to the Bundesbank hotline is sufficient for the AWV reporting.
This system gives the Bundesbank an insight into the passage of money between Germany and other countries. It is only due to the reporting obligation for transfers that it can compile the balance of payments and its foreign trade statistics.
FAQs and guidelines
- What is a SEPA transfer?
- How to derive an account number from an IBAN
- Returning online transfers
- Send money abroad
How do you make an AWV report as a private individual?
To comply with the AWV reporting obligation for private individuals, call the free Bundesbank reporting hotline on weekdays from 9am to 3pm on (0800) 1234-111.
When do I have to do the report?
You must comply with the reporting obligation for transfers by the seventh calendar day of the following month after a transfer has been made. This means, for example, that if you transfer or receive an amount of more than EUR 12,500 abroad in May, you have to call the Bundesbank by June 7th.
What does it mean if I see “Observe AWV reporting obligation” on my account statement?
First of all, it means that the reporting obligation when transferring money abroad may apply. Whether you really have to report transfers to the Bundesbank or not depends on the amount. There are also various exceptions to AWV reporting, for example for pension payments and certain loans.
What amount has to be reported?
The AWV reporting obligation applies to money transfers to and from abroad from a sum of EUR 12,500 or the equivalent in another currency.
