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Anti-Bribery Legislation and Enforcement Procedures in Germany

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Hospitality and Gifts

In the public sector, hospitality is treated more restrictively than in the private sector. When it comes to invitations to business lunches or other forms of hospitality, there are certain guidelines that need to be followed.

  • Appropriate Business Purposes: Invitations are admissible if they are related to business purposes.
  • Public Officials’ Diligence: Public officials require specific diligence to avoid any indication of potential bribery.

Self-Reporting

German law does not provide for an obligation of individuals or corporates to self-report possible bribery offences to the investigation authorities. However, tax laws do require the filing of a correction notification with the competent tax authority if bribery payments have been included as expenses in tax declarations.

  • Correction Notification: Filing a correction notification can lead to the initiation of criminal proceedings.
  • Tax Laws: Tax laws require individuals and corporates to report any bribery payments that may have been included as expenses in tax declarations.

Discretionary Termination and Settlements

In cases where the offender’s guilt is considered minor, criminal proceedings can be terminated. The public prosecutors’ office and/or the criminal court have discretion to terminate proceedings or settle with the defendant.

  • Sec. 153 of the German Code of Criminal Procedure: This section allows for the termination of criminal proceedings in cases where the offender’s guilt is considered minor.
  • Informal Agreement: Corporates can conclude an informal agreement on the amount to be paid as a fine and on the commitment not to file an appeal against the fine order.

Whistleblowing

In 2019, the EU adopted the Whistleblowing Directive, which aims to strengthen the protection of whistleblowers reporting infringements of EU law. The German Whistleblower Protection Act (Hinweisgeberschutzgesetz) transposed the EU directive into national law in July 2023.

  • Internal Reporting Channels: Companies with more than 50 employees must have internal reporting channels available and comply with prescribed processes to protect whistleblowers.
  • Whistleblower Protection Act: The German Whistleblower Protection Act aims to provide strong protection for whistleblowers who report infringements of EU law.

Cross-Border Issues

Investigation authorities of Member States cooperate closely on cross-border investigations, particularly within the EU. National investigation authorities are increasingly willing to cooperate with foreign counterparts, as seen in high-profile cases like the diesel emissions matter.

  • EU Cooperation: Investigation authorities of Member States cooperate closely on cross-border investigations.
  • National Cooperation: National investigation authorities are increasingly willing to cooperate with foreign counterparts.