NEW GERMAN DRAFT ACT TO COMBAT CORPORATE CRIME

On 6th September, Paul Hastings published an article about a new draft law that would allow for the prosecution of corporate crimes, in response to and consistent with the recommendations of the OECD Working Group on Bribery that Germany improve its prosecution of legal persons – the Corporate Sanctions Act (Verbandssanktionengesetz, or VerSanG-E).  This would enhance enforcement against corporations for business-related crimes, facilitate punishment of culpable companies, promote internal investigations, and incentivise investment in corporate compliance programmes.  The Act is expected to significantly change the compliance and investigation practice in Germany and beyond, and may also pose major risks on M&A deals, at least where the target is integrated into the buyer’s group.  The article outlines key takeaways, including creating incentives for investments in compliance, as a mitigating factor and that can lead to a substantial reduction of penalties.  It is also said to weaken privilege protection for documents.

https://www.paulhastings.com/publications-items/details/?id=2f72c86d-2334-6428-811c-ff00004cbded

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s