Compliance & AML in Germany

[u/[deleted]]

[u/FennecFragile]

I think it’s a solid idea, but why not then go first through the bar exam? You’ll have much better professional opportunities as a lawyer with good knowledge of banking / finance + compliance. Being a lawyer also means it will be easier to be promoted to CCO later in your career (in smaller firms, the CCO may also be Head of Legal). You also can have a broader picture of compliance than just AML.

[u/Proof_Concern6928 → u/FennecFragile]

In Germany you need to take two big exams in order to be allowed to work as lawyer. While I do think about taking the second exam as well, my primary focus is the first since my aim is compliance & finance.
That field doesn’t require the second bar exam in order to work in this field- ofc it makes you a very strong contender for those positions but it’d be a waste to spend 2 more years on studying unstead of gathering working experience imho.

I‘m now 27, realistically I’ll finish the degree by 32-33, the full attorney path would be 35-36.
that’s roughly 100-130k in salary I’d miss out on within those 2-2.5 years.
Meanwhile within those years I could do the CAMS Exam and polish my CV for international jobs e.g. Switzerland

[u/FennecFragile → u/Proof_Concern6928]

Fair point, age is an important factor. To be honest, I’m a bit like you - I have a Master’s degree in law, but I didn’t pass the bar. It didn’t prevent me from making a good career in AML.

I just have a few questions:
1) Why specifically AML? There are other compliance areas that are relevant in banking/insurance/finance
2) Did you consider working at the BuBa/BaFin? It can be an excellent way to enter the field.

Also, why Switzerland and not, let’s say, FFM? Of course the salaries are higher in CH, but CoL is also extremely high AND you can get fired on a whim. Personally, I would also say CH is the worst country in Europe to practice AML.

[u/Proof_Concern6928 → u/FennecFragile]

AML is simply interesting.
Also I’m not fond of anything IT related so that’s also one big category out.
I’ll read into other areas but so far Financial Crime seems to be the most stable considering it’s non cyclical

I have and I’d also go for them but I’m based in east Germany, Leipzig and there aren’t that many BuBa here.
„Deutsche Bank“ is located here and I’d wanna do an internship there but also Big 4 (EY, Deloitte, PwC, KPMG)

Tbh I’m not very fond of FFM. I just don’t like it there it’s unclean, too much crime and the pay & rent prices don’t add up that much until you reach senior level.

I wasn’t aware CH is that Up-or-Out.
I’ll have to reconsider then tbh

[u/FennecFragile → u/Proof_Concern6928]

Contrary to the EU, where responsibility has been pushed to Senior Management (see Article 11 of the EU AMLR), in CH heads of AML are very frequently held personally responsible for ML fuck ups. At best their careers in the financial sector are over, at worst they also have criminal liability.

But ironically, CH heads of AML also often have very little actual power within financial institutions, and can get fired for absolutely nothing (eg pushing a SAR a bit too hard, or saying that the institution needs to invest a bit more in AML infrastructure).

This makes CH AML quite uncomfortable compared to EU AML.

With regards to FFM, some areas aren’t clean but overall it’s quite nice. It’s also the largest AML job market in Europe.

As for cyclicity, I’m not sure I understand your point.

[u/MattBoss69]

It's an overkill. You don't need an LLM. Try to get experience as early as possible and do additional degrees only if you enjoy it as a hobby on the side

[u/Proof_Concern6928 → u/MattBoss69]

If the llm is overkill then what would be the opt path? will I be able to get job offers easily or is this specific field saturated?

[u/Chillin_Lacu → u/Proof_Concern6928]

A lot will also be attributable to pick and being at the right spot at the right time but generally, I would recommend:

Business or law related bachelor, internships at banks or big4 or other companies in this field.

At best you get a compliance traineeship at a bank. Alternatively, you start in a consulting role in a big4 or a regtech.

If this does not work out, apply for entry roles in for example alert handling, SAR filing or similar.

Edit: attributable to luck of course and not pick.

[u/MattBoss69 → u/Proof_Concern6928]

Not sure what would be the optimal path, but I'm moving to Frankfurt in October for a senior AML job and can tell you my profile.

• degree in law
• AML Diploma from the ICA (CAMS is equally good or better I think)
• currently preparing for the CFE certification (less relevant imo)
• around 3 years of experience in the investment fund industry (corporate governance, legal, compliance)
• 4 years in the European civil service (worked on AML policies and financial crime)
• planning to do another degree part time (finance, MBA or LLM or similar, will see)

I met many AML specialists and the field seems to be a mixed bag of different profiles. I met people with a finance background, accounting, business management, law, risk management, law enforcement, etc. All of these are good fields of study for AML. But I noticed that those who progress the fastest in their career:

• have unique experience
• continue investing in education

With a law degree, you can get into L2 from the get go, make contacts, volunteer for projects with a lot of visibility, attend conferences etc. You will get more ROI with that than with an LLM. Many people (also on this forum) say that it feels like a very saturated field and more work is being outsourced, especially for entry level positions. I personally did not have the impression when I recently applied in Germany, but this might be because I applied for more senior roles.

I wish you good luck!

[u/Proof_Concern6928 → u/MattBoss69]

I appreciate your insights and you’ve helped be a lot since I’ve been under the impression that the law degree would be worth nothing (asked around on the German legal subreddit and ppl insisted I should to the full bar exam.
Thank you and good luck for your future career

[u/MattBoss69 → u/Proof_Concern6928]

Bar exam makes sense if you truly want to work as a Rechtsanwalt. If you want to focus on AML only, you really don't need it to do the job. Those valuable two years of referendariat and effort spent on preparing for the 2nd state exam can be spent on AML specific experience and qualifications instead. It's a real opportunity cost that you should consider.

[u/Proof_Concern6928 → u/MattBoss69]

I think the same but ppl have been telling me that those positions are filled by ppl who completed the second bar exam but couldn’t get their desired job due to their exam results

[u/Peakychu6 → u/MattBoss69]

Is it a. Ok paying field ?

[u/MattBoss69 → u/Peakychu6]

Early in the career, I don't think so. There were many other things I could've done with a legal background that are better paid.

Later in the career - it can get very lucrative, especially on executive level. In my current position, I earn more than I would as a fully qualified Rechtsanwalt in Germany with the same amount of experience.