Out-Law News Lesedauer: 2 Min.
11 Jul 2025, 3:05 pm
The new German government has laid out a series of measures to crack down on white-collar crime and intends to rewrite the Act on Corporate Due Diligence Obligations in Supply Chains as part of its common legislative goals for the next four years.
Dr. Andreas Schöberle of Pinsent Masons said companies should monitor the development of the new legislation and review their compliance guidelines for updates.
The newly formed coalition government unveiled ambitious plans to address five types of white-collar crime in a comprehensive agreement, as well as the adjustment of the Act on Corporate Due Diligence Obligations in Supply Chains. Although tangible changes have yet to materialise, the coalition agreement remains a “key indicator” for understanding the coalition’s intentions and priorities for the current legislative period, said Schöberle. This has an impact on companies as compliance guidelines should be implemented or reviewed for updates.
The German government is planning to abolish the Act on Corporate Due Diligence Obligations in Supply Chains. It will be replaced by a new law on international corporate responsibility, designed to implement the EU Corporate Sustainability Due Diligence Directive (CS3D) in a streamlined and enforcement-friendly manner. The existing reporting obligations of the current Act will be immediately abolished and will no longer apply. Until the new law comes into force, the current legal due diligence obligations will not be subject to sanctions – except in cases involving severe human rights violations.
Regarding white collar crime, the government is planning to take decisive action against money laundering and financial crimes. It is seeking to strengthen cooperation and information exchange between federal and state authorities, as well as with national and international organisations, the EU, and the newly established European Anti-Money Laundering Authority.
Efforts are also being made to close existing gaps in the transparency register. Where one or more beneficial owners cannot be identified, legal entities will be prohibited from conducting transactions exceeding €10,000 net. In addition, a constitutionally compliant administrative procedure for asset tracing is to be introduced. Its purpose is to enable the seizure of high-value assets where there are unresolved doubts about their lawful origin. Existing instruments for asset confiscation will be further developed and expanded to include a procedure for seizing property of unexplained origin.
In addition, the agreement highlighted the government’s commitment to crack down on illicit tax practices. This includes the introduction of new initiatives aimed at curbing undue advantages in dividend taxation, particularly in relation to “cum-cum” schemes, which involve shareholders moving stock to someone in another country in order to avoid paying a dividend tax.
Tax havens are also targeted. As well as advocating for the consistent inclusion of non-cooperative jurisdictions on the EU’s blacklist, the government plans to expand the use of telephone surveillance in cases of serious organised tax evasion.
In the field of cyber crime, there are plans for reform to address existing legal gaps. This includes the introduction of provisions to cover the creation and distribution of ‘deepfakes’, especially where such content is made accessible to third parties. Sanctions against online platforms will be tightened, particularly in cases where there are systemic failures to remove illegal content.
Another priority area is environmental crime, which remains one of the most significant areas of activity for organised criminal networks. While efforts are already being made to enhance cooperation at both the European and international levels, the government also proposes to develop a “national action plan” to define clear objectives and measures aimed at strengthening the country’s fight against environmental offences.
The new government also plans to strengthen criminal asset recovery mechanisms and intensify measures against organised crime networks by introducing a full reversal of the burden of proof in cases involving the confiscation of assets with unclear origin.
Dr. Andreas Schöberle said businesses should monitor the government’s white-collar crime policies as they develop ahead of any new legislation coming into force. “Companies should closely watch which specific measures the new government will implement in order to avoid any compliance risks and prevent companies from having to deal with any short-term adjustments,” he said.
Out-Law News
14 Apr 2025