Finance: Schufa bets on combating money laundering with new takeover

German credit bureau Schufa is expanding into a new business area by acquiring the consulting firm Strateco. This strategic move aims to establish the fight against money laundering as a second core business alongside its existing consumer credit scoring services.

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These lead to more complexity in data and processes as well as higher audit frequency.

Strateco, based in Bad Homburg, specializes in advising major banks on regulatory matters and has a long-standing working relationship with Schufa. The acquisition is a direct response to escalating European requirements for combating money laundering and the establishment of new structures, such as the EU's anti-money laundering authority AMLA, which began operations in Frankfurt about a year ago. Schufa noted that these developments lead to greater complexity in data and processes, alongside increased audit frequencies.

With this acquisition, Schufa will enhance its compliance solutions business, creating a second pillar alongside its established creditworthiness checks for consumers, used in contexts like rental agreements and mobile phone contracts. The company intends to integrate its subsidiary ClariLab, which focuses on identity verification and serves approximately 400 banks, with Strateco under the umbrella of the new "Schufa Compliance Suite." The purchase price for Strateco, which employs around 160 people, was not disclosed.

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According to estimates, more than 100 billion euros are illegally funneled into the money circulation in Germany every year.

Money laundering is a significant issue, particularly in Germany, partly due to the country's traditional reliance on cash payments. Schufa CEO Tanja Birkholz stated that estimates suggest over 100 billion euros are illegally funneled into the financial system annually in Germany. Banks are legally obligated to promptly report suspicious cases of money laundering and terrorist financing. Through this acquisition, Schufa aims to position itself as a national provider, supporting German branches of international banks in navigating European markets.

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If we now bundle our activities, we have the potential for market leadership.