Financial Crime World

Title: White-collar Crime and Finance in Germany: A Legal and Enforcement Overview

Last Updated: October 24, 2023

Germany’s strong economy and intricate financial sector make it a vital player in the global business scene. However, this advantage comes with risks, as Germany has experienced its fair share of white-collar crime. This article offers a media-style overview of white-collar crime and finance in Germany, covering the legal framework, prominent cases, and enforcement authorities.

  • German law distinguishes between criminal offenses and administrative offenses
  • White-collar crimes, including fraud, tax evasion, and bribery, are typically misdemeanors
  • To prosecute white-collar crimes, German law mandates satisfying the objective and subjective elements of a criminal statute, no justification, and perpetrator’s culpability

German Criminal Law and White-collar Crimes

Specific Conditions for Prosecution

  • Objective elements: facts constituting the crime
  • Subjective elements: the perpetrator’s state of mind
  • No justification: absence of valid reasons to excuse the crime
  • Culpability: intent, negligence, or strict liability

Attempted Crimes

  • Depending on the statute, attempted white-collar offenses can lead to criminal liability

Long Statute of Limitations

  • In Germany, penalties dictate the length of the statute (ranging from 3 to 5 years)
  • Exceptions exist for specific crimes like aggravated tax evasion

Jurisdiction over White-collar Crimes

  • German criminal law follows the principle of territoriality
  • Certain white-collar offenses may fall under German jurisdiction if German nationals, foreign citizens harming German interests, or offenses with a domestic connection are involved
  • European Public Prosecutor’s Office (EPPO) prosecuting EU’s financial interest crimes

Collaborative Approach in Combating White-collar Crime

Domestic Efforts

  • Criminal investigations led by Public Prosecutor’s offices, supported by police
  • Specialized units and economic and accounting experts

Initiation of White-collar Investigations

  • Criminal complaints
  • Whistleblowers
  • Regulatory audits

Investigative Measures

  • Document and data requests
  • Seizures
  • Employee or suspect questioning

Cooperating with Law Enforcement

  • Share internal investigation results
  • Conduct interviews in line with the prosecutor’s process
  • Potential for reduced fines or more favorable outcomes