First Reading on the Financial Crime Combating Act (FKBG)

On December 14, 2023, the Bundestag held its first reading on the draft law for combating financial crime.

The law, proposed by the Federal Government, aims to establish a Money Laundering Investigation Center (EZG).

Finance Minister Christian Lindner emphasized that the draft addresses deficiencies in Germany’s financial crime fighting criticized by the FATF, particularly the inadequate cooperation between authorities and prioritization of money laundering investigations.

The draft was forwarded to the Finance Committee.

The CDU/CSU faction expressed disappointment with the draft and submitted their own proposal, which envisages consolidating various police services into a customs police to combat financial crime more effectively.

The SPD highlighted the social impacts of money laundering, while the AfD criticized the draft as an admission of failure in combating money laundering.

The Greens and the FDP supported the draft but called for stronger cooperation between federal and state governments.

The Bundesrat demands participation in the legislative process and suggests defining the jurisdiction of the Money Laundering Investigation Center (EZG) more clearly.

The Federal Government disagrees with the necessity of Bundesrat’s consent and rejects some proposals.

Both the Federal Government’s draft and the Union’s proposal aim to improve the fight against financial crime in Germany, but differ in their approaches and focal points.

Draft of a Law to Improve the Combat against Financial Crime (Financial Crime Combating Act – FKBG)

Article 1 FKBG – Law on the Establishment of the Federal Office for Combating Financial Crime (BBF Establishment Act)
Article 2 FKBG – Amendment of the BBF Establishment Act
Article 3 FKBG – Law on the Money Laundering Investigation Center (Money Laundering Investigation Act – GwEG)
Article 4 FKBG – Amendment of the Federal Budget Code
Article 5 FKBG – Amendment of the Law on Direct Force in the Exercise of Public Authority by Federal Enforcement Officers
Article 6 FKBG – Amendment of the Financial Administration Act
Article 7 FKBG – Amendment of the Customs Investigation Service Act
Article 8 FKBG – Amendment of the Motor Vehicle Tax Act
Article 9 FKBG – Amendment of the Customs Administration Act
Article 10 FKBG – Amendment of the Federal Civil Servants Act
Article 11 FKBG – Amendment of the Federal Salary Act
Article 12 FKBG – Further Amendment of the Federal Salary Act
Article 13 FKBG – Amendment of the Federal Criminal Police Office Act
Article 14 FKBG – Amendment of the Weapons Act
Article 15 FKBG – Amendment of the Sanctions Enforcement Act
Article 16 FKBG – Amendment of the Banking Act
Article 17 FKBG – Amendment of the Financial Services Supervision Act
Article 18 FKBG – Amendment of the Money Laundering Act
Article 19 FKBG – Amendment of the Insurance Supervision Act
Article 20 FKBG – Amendment of the Road Traffic Act
Article 21 FKBG – Amendment of the Road Traffic Regulations
Article 22 FKBG – Amendment of the Security Screening Determination Ordinance
Article 23 FKBG – Amendment of the Audit Report Ordinance
Article 24 FKBG – Amendment of the Financial Services Supervisory Fees Ordinance
Article 25 FKBG – Amendment of the Federal Career Ordinance
Article 26 FKBG – Enactment