Corporate Criminal Law in Germany: Framework, Risks, and Practice

Corporate criminal liability in Germany regularly presents international companies, their legal departments, and advisers with particular challenges. The legal framework differs in key respects from Anglo-American systems and requires a precise understanding of German procedural principles, liability concepts, and sanctioning practices. At the same time, issues such as compliance, internal investigations, and strategic crisis management are becoming increasingly important.

The handbook Corporate Criminal Liability in Germany addresses these challenges directly. It provides concise, practice-oriented guidance and bridges the gap between German legal doctrine and the demands of international practice. In the following interview, the editors offer insights into core aspects of German corporate criminal liability, typical risk scenarios, and effective strategies for dealing with critical situations.

1. What gave you the idea to compile an English-language handbook on corporate criminal law?

The idea grew out of our day-to-day practice. From the very beginning of our work as lawyers in white-collar criminal law, we have been dealing with English-speaking clients and colleagues, and we noticed that whilst there is an abundance of excellent German-language works on corporate criminal law, there are very few compact, systematic treatments of the subject in English.

Yet for international companies, in-house counsel and foreign advisers, it is essential to understand the particularities of the German system quickly. Therefore, our aim was to bridge this gap and connect German legal doctrine with the practical needs of globally operating businesses whose working language is regularly English.

2. What key features of German criminal procedure should international companies be aware of?

One essential feature is the principle of official investigation (Amtsermittlungsgrundsatz): Public Prosecutor's Offices are obliged to investigate upon initial suspicion and to consider both incriminating and exculpatory circumstances. It is also worth highlighting that Germany does not have genuine plea bargaining or non-prosecution agreements in the Anglo-American sense, even though negotiated agreements on the outcome of criminal trials are possible.

Companies should further be aware that searches and seizures are a very effective and frequently used tool of the investigative authorities – including in criminal proceedings in which a company may be merely an uninvolved “third party”. The legal protection afforded

to the results of internal investigations and to attorney-client communications is more complex in Germany than in many common law jurisdictions.

Finally, the individual liability of natural persons plays a central role. The German system does not recognise genuine corporate criminal liability in the classical sense; instead, it relies primarily on administrative fines under the law on regulatory offences (Ordnungswidrigkeitengesetz or OWiG). That said, a precise knowledge of the criminal provisions directed at natural persons remains indispensable, since any fines and confiscation measures imposed on the company are tied to the individual criminal liability of those persons. 

3. What strategic options are available to companies facing criminal investigations?

The first and most important step is to promptly review and, if necessary and possible, discontinue the business practices under investigation . All available information should be used for this purpose. This does not immediately have to be labelled an internal investigation, though in individual cases it may well amount to one.

Within the context of criminal proceedings, the following options should be considered, although their advisability should be carefully assessed in the individual case:

conducting internal investigations, actively cooperating with the investigative authorities or adopting a passive approach, pursuing a targeted defence strategy for corporate officers, and implementing or improving compliance measures. All of these steps can have a significant influence on any subsequent sanction imposed on the company.

A well-coordinated overall strategy – legal, communicative and organisational – is crucial for minimising risks and protecting the company's reputation. 

4. What are the fundamental principles governing corporate liability in Germany?

German law follows the principle of separation between natural persons and legal entities. In principle, only natural persons can be criminally liable.

Companies themselves may, however, be subject to substantial administrative fines under the law on regulatory offences (OWiG), in particular where members of senior management commit criminal offences or supervisory duties are breached.

A central element in this regard is the so-called failure to supervise (§ 130 OWiG), which in practice obliges companies to implement adequate organisational and control measures.

In this context, it is worth mentioning that Germany has for years been engaged in a legislative debate about the introduction of genuine corporate criminal liability. However,

corresponding legislation (e.g. the so-called Verbandssanktionengesetz) has not yet been enacted. For international companies coming from legal systems with genuine corporate criminal liability – such as those in the Anglo-American legal tradition – this absence of corporate criminal liability in the strict sense represents a significant difference.

That said, it would be wrong to conclude that criminal liability for companies operating in Germany is of lesser importance: precisely because fines and confiscation measures against a company are tied to the individual criminal liability of its senior personnel, a thorough knowledge of the applicable criminal provisions is indispensable for every company active in Germany.

5. How can companies build an effective compliance system to minimise liability risks?

An effective compliance system is founded on a risk-based approach. The starting point is a thorough risk analysis that takes into account the company's specific business activities and markets.

Essential elements include clear codes of conduct and processes, effective training, a functioning whistleblower system, and consistent sanctioning of violations.

Equally decisive is the “tone from the top”: compliance must be actively embodied and supported by senior management.

Dr Pedram Karami’s chapter gives a comprehensive overview on compliance management systems, whereas the no less important details concerning whistleblower systems are addressed by Laura Hainlein in her chapter ‘Whistleblower systems as part of the CMS’.

6. What sanctions do companies face in the areas of corruption and fraud? Can you cite cases in which particularly severe penalties were imposed?

In these areas, both prison sentences for responsible individuals and substantial fines against companies are at stake. These are frequently accompanied by confiscation measures, which can be particularly severe in economic terms.

A particularly prominent example is provided by the so-called ‘Diesel cases’, which have been keeping the investigative authorities and courts busy for well over a decade. In their chapter on fraud and subsidy fraud, Dr Max Schwerdtfeger and Dr Lucas Jürss illustrate the criminal risks for companies in the context of fraud, drawing especially on this example.

The practice and legal particularities of corruption proceedings are examined by Dr Jeanie Henn and Timm Sperber in their chapter on corruption offences. They also highlight the vital importance of prevention through adequate compliance in this area — not least given the risks companies face from a combination of fines and confiscation.

In addition to sanctions arising directly from corruption and fraud proceedings, companies are regularly exposed to substantial reputational damage that accompanies such cases – making prevention, or remediation at the earliest possible stage, all the more important.

7. How can companies lawfully address misconduct by their own employees?

This requires a close interplay between employment law and criminal law. Companies must ensure that internal investigations meet standards of due process whilst also being usable in subsequent employment law proceedings.

Of particular importance are transparent and fair investigative processes, compliance with data protection requirements, and thorough documentation.

The many pitfalls of internal investigations – and how to avoid them – are set out by Dr Laura Harandt-Wüst in her chapter on internal investigations.

8. What environmental violations regularly give rise to sanctions against companies?

Typical cases involve unlawful emissions, breaches of waste or water protection regulations, and failures in the handling of hazardous substances.

Sanctions range from administrative fines and criminal consequences for responsible individuals to the closure of operations. The confiscation of economic gains is also playing an increasingly important role in this area.

For international companies, it is particularly important to realise that environmental violations can often trigger cross-border investigations.

In this regard, we can refer to the chapter by Dr Manuel Lorenz on environmental criminal law, product criminal law, and food criminal law.

9. What risks arise in foreign trade law, particularly in relation to export controls?

Risks relating to export control have increased considerably in recent years. Companies must ensure that they do not supply sanctioned goods, technologies or services to prohibited countries or to listed persons.

Violations can result in substantial administrative fines, criminal consequences, and exclusion from public procurement.

Particularly challenging is the dynamic nature of this field of law: sanctions lists and embargo regulations change frequently and require continuous monitoring.

Tillmann Gessert and Dr Tony Rostalski have addressed these topics in their chapter on foreign trade law.

10. How should companies in a crisis respond appropriately – both strategically and in terms of communications?

In a crisis, a coordinated overall strategy is paramount. Legal defence, internal investigation and external communication must be closely aligned.

Companies should define clear lines of responsibility at an early stage and establish a consistent communication strategy. Transparency towards the authorities may well be advisable, whilst external communication must be carefully managed so as not to increase legal exposure.

Professional crisis management can make a decisive contribution to preserving trust and limiting long-term damage.

Dr Krause-Ablaß and Dr Bernd Groß discuss strategic questions in their chapter on principles of corporate responsibility and strategies, making clear that corporate responsibility and the proper handling of criminal law issues are two sides of the same coin.

We hope that our English-language handbook on corporate criminal law will serve as a reliable guide for international companies, their in-house counsel, and advisers operating in this field — particularly when it matters most.

The handbook by Kruse/Tute explains clearly and concisely when and how companies can be held criminally or administratively liable in Germany. It offers an overview of key procedural steps, highlights typical risks – ranging from compliance to white-collar criminal law – and also addresses specialist topics such as data protection, IT, employment, or capital markets law. Written by experienced practitioners from both private practice and public prosecution, this English-language book serves as a helpful guide for anyone seeking to gain a quick yet well-grounded understanding of this area of law – in Germany as well as internationally.

Björn Kruse is a specialist lawyer in criminal law (Fachanwalt für Strafrecht) and partner at ARKTIK Legal in Frankfurt. He advises on complex national and international criminal cases, with a particular focus on tax criminal law, cybercrime, money laundering, corruption and corporate criminal liability. His practice also includes representation in INTERPOL Red Notice cases and extradition proceedings, where he regularly acts in cross-border contexts. At ARKTIK Legal, he is also working on complex commercial disputes involving criminal law particularly those concerning fraud, insolvency-related offences, or shareholder conflicts that call for parallel civil and criminal defence strategies. He studied law at Goethe University Frankfurt, where he also earned his doctorate in criminal law. He also accomplished an LL.M. in international criminal law at the University Campus of the United Nations in Turin (Italy).

Christoph Tute is a specialist lawyer for criminal law and partner at the Frankfurt-based law firm schilling tute. He advises and defends corporations and individuals in all areas of white-collar criminal law and criminal tax law, with his practice focusing particularly on breach of trust, as well as corruption, money laundering, tax evasion, environmental offences, and confiscation of assets. He studied law with a focus on criminal law in Munich and Lisbon and completed his legal clerkship in Berlin. He serves as treasurer on the board of the Wirtschaftsstrafrechtliche Vereinigung e.V. (WisteV) and regularly publishes articles and holds lectures on German and international white-collar criminal law and corporate compliance topics.

C.H.Beck publishes a wide range of English‑language titles on German law. Written by experienced practitioners and experts, these books combine legal depth with a strong focus on practical applicability, supporting you in your day‑to‑day work. Explore these selected highlights or browse the full range under: Beck International - German Law.

As of: May 2026