Germany Introduces Law to Seize Assets of Unclear Origin
News related to:Azar Wealth · 2 min read
Germany is set to introduce a new law that will allow customs and financial authorities to seize assets of unclear origin starting from January 2027. The Customs Financial Justice Act, which will be first read in the Bundestag, aims to address the issue by giving state authorities the power to freeze assets worth more than 100,000 euros for up to 180 days when there are factual indications that the origin of the assets is unclear.
The federal states are requesting a period of twelve months to conduct thorough investigations. The law does not require a purchase receipt, but a gross mismatch between income and wealth can be considered as an indication of unclear origin. In their statement, the states explicitly mention older acquisitions, inheritances, and gifts as areas of concern.
The new legislation highlights the changing landscape of asset transparency. For instance, the upcoming auction of the Bulgari Pink diamond by Christie's on November 10, a 24.00 carat Fancy Intense Pink diamond held by the same European noble family for over seventy years, will be scrutinized under the new rules. According to family tradition, the rough stone was bought in India in the 1950s. However, the auction house does not mention an invoice, which would be sufficient for a sale in Geneva, where provenance is a selling point. In Germany, after January 1, 2027, the same stone would be considered a case with open questions.
Jonah Azar, founder of Azar Wealth and a member of the Dubai Diamond Exchange, explains the new requirements.
Azar Wealth, a house for wealth preservation based in Dubai, has been following the legislative process closely. The company sources physical gold, silver, and GIA certified colored diamonds for private clients from German-speaking countries directly at the trading centers, arranges custody in high security vaults outside the banking system, and works with law firm partners on three continents on structures, relocation, and succession.
Azar Wealth has been providing its clients and readers with weekly briefings on the legislative process. The current German language issue, "Können Sie es beweisen?" is freely available. The company emphasizes the importance of having the four documents that make gold and diamonds audit-proof: an invoice, proof of payment, a grading report, and a custody certificate. Each of these documents is crucial in proving the provenance of the asset.
For assets bought in cash years ago or inherited, the invoice is often missing for good. In such cases, the chain of ownership matters. Estate inventories, certificates of inheritance, deeds of gift, old insurance policies, repair receipts, dated photographs, and current appraisals that describe the item unambiguously are all part of the process. Each of these papers shows that the asset was in the family long before any present-day suspicion.
Azar Wealth has been tracking the legislative process for weeks and has been providing its clients and readers with detailed briefings. The current German language issue, "Können Sie es beweisen?" is freely available on the company's website.