There has been a major shift in the European Union (“EU”) in recent years around Environment, Social and Governance (“ESG“), from voluntary corporate social responsibility initiatives to a much more regulated and legislation-driven ESG regime. A key component driving this shift is the Corporate Sustainability Due Diligence Directive of June 13, 2024 (“CS3D”),[1] which established … Continue Reading
In our previous article on this topic (which you can read here), we analyzed recent enforcement activity by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) related to the maritime transport of Russian-origin crude oil and Russian-origin petroleum products above price caps agreed by the “Price Cap Coalition,” comprising Australia, Canada, … Continue Reading
In June 2022, the Group of Seven (“G7”) countries—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States—decided to pursue a policy to cap the price of Russian oil. In December 2022, the G7 countries, joined by Australia and the supranational European Union (together, the “Price Cap Coalition”) officially implemented measures to ban … Continue Reading
The second half of 2023 saw eight enforcement actions from the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”). These actions reflect a range of penalties, industries, sanctions programs, conduct, and lessons learned. Below are some highlights from OFAC’s enforcement releases and settlement agreements. Penalties OFAC imposed a total of $984,851,289.90 in penalties … Continue Reading
It is said that the history of tax avoidance is as long as the history of tax. One of the latest tax avoidance strategies, which has seemingly crossed the line to illegal tax evasion, is that of “Cum-Ex” share trading, sometimes referred to as “dividend stripping.” For the past few years, German authorities have led … Continue Reading
The Public Contacts Directive (2014/24/EC – the “2014 Directive”)[1] sets out the legal framework for public procurement when contracting authorities seek to acquire supplies, services, or works (e.g. civil engineering or building). The intention is that procurement rules become simpler and more flexible. Despite the 2014 Directive not requiring transposition into Member States’[2] law until … Continue Reading
Anti-bribery and corruption has been a hot topic in the US for almost 40 years. The topic has historically however received much less attention within Europe. That is now changing as Europe is beginning to catch up and many European countries have already implemented anti-bribery laws much stricter than those in the US. Recent events … Continue Reading
Criminal proceedings against entities under German law only are possible under provisions of the Code of Administrative Offences (Gesetz über Ordnungswidrigkeiten). The applicable provisions have recently been tightened and now provide the imposition of a fine of up to ten million Euros upon an entity that has failed to perform its duties regarding the prevention … Continue Reading
Many thanks to Dr. Andreas Fillmann and Nina K. Hesse from Squire Sanders’ Frankfurt Office for preparing the following article. Criminal liability in the public sector Generally, bribery and corruption are regulated under the German Criminal Code (Strafgesetzbuch). On hand corruption of public officials is unlawful in circumstances where an individual person offers, promises or … Continue Reading
Introduction Since the bribery scandals of international magnitude involving German multinational companies like Siemens as well as the local scandals among public officials and politicians, Germany’s enforcement of anti-bribery and corruption law has increased steadily and resulted in significant number of prosecutions and sanctions imposed in domestic as well as in foreign anti-bribery and corruption … Continue Reading
For years there has been a public debate in Germany about corruption in the healthcare sector – not least because of the huge economical detriments. Experts estimate that corruption in the health care system causes damages of up to EUR 18 billion, which corresponds to ten percent of the entire healthcare expenditure. Of particular interest … Continue Reading
On December 17 2012 Allianz SE, a major German insurance and asset management company, reached a settlement with the Securities and Exchange Commission (SEC) on charges of violating the Foreign Corrupt Practices Act (FCPA). In return for a payment of $12.3M SEC committed to abstain from further inquiries regarding the subject of the procedure – … Continue Reading
Mannheim Public Prosecutor’s office announced they are currently reviewing whether official preliminary proceedings against Germany based company Energie Baden-Wuerttemberg (EnBW) will be initiated. Possible charges comprise embezzlement, tax evasion and bribery. Mannheim prosecutors, specialized in white-collar crime, took over the case from Karlsruhe Public Prosecutor’s office where the proceedings were investigated since September 2011. EnBW, … Continue Reading
Magyar Telekom Plc and its majority owner Deutsche Telekom AG have agreed to pay a total of approximately $95 million in penalties arising from alleged violations of the anti-bribery and books and records provisions of the Foreign Corrupt Practices Act (“FCPA”) stemming from conduct in Macedonia and Montenegro. Conduct Between 2005 and 2006, former executives … Continue Reading
According to German newspaper Münchner Merkur Munich-based media group Constantin Medien AG sued Formula One boss Bernie Ecclestone, his holding company Bambino and former board member of the Bavarian Regional Bank (BayernLB) Gerhard Gribkowsky for $ 171 million in damages. Reportedly the legal action has been filed at London’s High Court of Justice. The plaintiff … Continue Reading
On Monday, July 18th, Munich prosecutors indicted Gerhard Gribkowsky, former board member of the Bavarian Regional Bank (Bayerische Landesbank, also known as BayernLB), for tax evasion, breach of trust and receipt of corrupt payments. The accusations include failing to pay taxes in Germany trying to conceal payments of bribery money. The defendant has been in … Continue Reading
Second former Siemens board member charged According to reports in several newspapers, Munich prosecutors indicted a former Siemens Manager in connection with the Siemens bribery scandal. Multiple sources allege the affected person to be former Siemens board member Uriel Sharef. He would be the second Siemens Manager within a few months having to stand trial. … Continue Reading
The following blog post has been contributed by SSD’s Andreas Fillmann. The attorneys of a former member of Siemens AG’s management board, Thomas Ganswindt, have won a first victory in Mr. Ganswindt’s recently opened criminal trial. The trial, taking place in a Munich regional court to determine his involvement in a Siemens corruption scandal, was … Continue Reading
Four Russian officials appointed by the Russian Economic Development Industry to the European Bank for Reconstruction and Development (EBRD) are being investigated by the City of London and Russian police for charges that include accepting bribes and doling out false credits to various projects. According to an EBRD spokesman, it is not clear what spurred … Continue Reading
