Business crime in the new German coalition agreement
Following intense negotiations, the Christian Democratic Union (CDU), its Bavarian sister party (CSU) and the Social Democrats (SPD) presented their coalition agreement for the new legislative period in Germany, outlining the so-called Grand Coalition’s political goals and plans for the coming years. While it is still subject to approval by a party committee of the CDU and the members of the SPD, it is already worth looking at what the agreement has in store for business crime.
Key plans
Unlike its predecessors, the coalition agreement does not envisage a general reform of corporate criminal law, but rather targeted measures aiming at various areas of business crime:
Sanctions
Unsurprisingly, the coalition commits to previous policies and pledges effective implementation of EU sanctions following the Ukraine war. Similarly, it shows commitment to sanctions against Iran and the global violation of human rights.
Although not explicitly mentioned, attention will likely be on implementing the EU Directive on the definition of criminal offences and penalties for the violation of EU restrictive measures, expected to be incorporated into national law by May 2025 (read more here). Additionally, the 17th EU sanctions package will be in the spotlight.
Anti-money laundering
Combating money laundering remains a priority. The coalition aims to avoid another lacklustre rating from the Financial Action Task Force (FATF). Building on earlier efforts (read more here) that failed in the last legislative period and EU law (read more here), the Grand Coalition
- plans to centralise competences in financial crime,
- wants to enhance collaboration between national and international entities, notably the new EU Anti-Money Laundering Authority (AMLA),
- aims at closing gaps related to the transparency register,
- signals a tighter grip on identifying beneficial ownership by specifying that obliged entities may not conduct transactions over €10,000 if beneficial owners cannot be identified, and
- offers investigators the flexibility necessary to efficiently probe and prosecute money laundering cases by no longer requiring predicate offences for phone surveillance and online searches in money laundering cases.
Asset seizure
In line with those ambitious plans, the coalition agreement also includes significant measures concerning the seizure and confiscation of assets. Efforts are underway to establish administrative processes for identifying and seizing suspicious assets of substantial value, reflecting regulations in other jurisdictions (so-called suspicious wealth order). Moreover, seizure procedures for assets of unclear origin will undergo further reforms, seeking a complete reversal of the burden of proof to address practical shortcomings of the current rules. Finally, the coalition charts uncertain territory by proposing further adaptations based on extensive recommendations from a dedicated working group.
Tax evasion
The Grand Coalition vows to fight tax evasion. Its plans for additional measures to prevent unjustified benefits in dividend taxation (cum-cum transactions) are specifically relevant to business crime.
Cybercrime
As cybercrime continues to rise, the Grand Coalition acknowledges the need for action in this area.
On the one hand, the coalition aims to close gaps in prosecution, particularly by tightening sanctions for platforms with systematic shortcomings in removing illegal content. They also seek to strengthen the Federal Criminal Police Office to effectively combat cybercrime.
On the other hand, the coalition agreement focuses on general cybersecurity enhancement. The Grand Coalition aims to bolster awareness and support for cybersecurity measures as well as for the implementation of the Cyber Resilience Act. Other priorities are the development of a national cyber security strategy and the implementation of the NIS 2 Directive, including in the area of critical energy infrastructure.
Environmental crime
Environmental crime is identified as a focus area, advocating stronger European and international cooperation for combatting such crimes. This aligns with obligations to implement the EU Environmental Crime Directive by May 2026 (read more here).
Conclusion
While the coalition agreement does not offer sweeping reforms in the realm of business crime, the envisaged targeted measures signal an intention to tackle key issues with precision. This applies, in particular, to the ambitious plans for reforms of anti-money laundering laws and asset confiscation rules, which have the potential for significant implications for companies.
Companies active in Germany should stay informed to prepare for new risks and compliance with the evolving regulations. Understanding the nuances of these initiatives will be critical for companies striving to operate within the legal framework set forth by this coalition agreement.
