1. Corporate Criminal Liability in Germany – the draft Corporate Sanctions Act
Dr. Adrian Jung
Public Prosecutor
Federal Ministry of Justice and Consumer Protection

2. Current legal situation in Germany
Corporate offences may only be punished as „administrative offence“
Maximum fine: 10 Million Euros
„Excessive“ amounts are confiscation based
No concrete assessment rules for fines
Prosecution is in the discretion of responsible authorities

3. Objectives of the draft Corporate Sanctions Act
Sanctioning of all criminal offences committed by either
executive personnel or
other persons if executive personnel has violated its supervisory duties
Effective law enforcement throughout Germany
Extension of sanctions
Extension of procedural rights for companies
Establishing assessment rules for sanctions
No sentencing guidelines
Compliance and internal investigations are taken into account to mitigate sanctions
Options for procedure settings without a verdict

4. Effective law enforcement throughout Germany
Current situation:
Principle of Opportunity
Draft act:
Principle of Legality

5. Extension of sanctions
Maximum fine: 10 Million Euros
„Excessive“ amounts are confiscation based (only profit)
Current situation:
„Wandering“ sanction limit:
10 Million Euros
10% of the turnover for companies with a turnover over 100 Million Euros
Public announcement of the verdict
Liquidation of the company
In addition: confiscation of the proceeds (not only profit)
Draft Act:

6. Extension of procedural rights for companies
Company obtains the rights of a suspect or an accused person
Especially: Right to remain silent
Right to apply to court

7. Establishing assessment rules for sanctions
Dispensing with prosecution
Internal investigations
Compliance measures

8. Promotion of compliance measures
Effective compliance measures are taken into account to mitigate sanctions
An offence committed does not speak against an effective compliance
No window dressing

9. Incentives for internal investigations
Decrease of sanction framework by half
No public announcement of the verdict
No liquidation of the company
Written proceeding without public trial mandatory
Requirements
Unbiased internal investigation
unconditional and permanent cooperation with the public prosecutor´s office
Handover of all documents
Adherence to a “fair” procedure with regard to the interviewed employees

10. Dispensing with prosecution
Non-prosecution of petty offences
Significance of the offence committed is considered to be of a minor nature
Severity and extent of the failure of the company to take reasonable precautions to avoid any offences does also play a role for the “minor nature” of the offence
No public interest in the prosecution
Non-prosecution subject to imposition of conditions and directions
Public prosecution office may dispense with the preferment of public charges and concurrently impose conditions on and issue directions to the company if
these are of such a nature as to eliminate the public interest in prosecution and
if the significance of the offence committed and
also the severity and extent of the failure of the company to take reasonable precautions to avoid any offences does not present an obstacle thereto.

11. Thank YOU
for Your Attention!