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
13.10.2023
BR Document 506/23 (Draft Bill Federal Government)
06.12.2023
BT Document 20/9648 (Draft Bill Federal Government)
24.11.2023
BR Plenary Protocol 1038, p. 391-391, TOP 20
Sources:
https://www.bundestag.de/dokumente/textarchiv/2023/kw50-de-finanzkriminalitaet-980614
https://www.bundesrat.de/SharedDocs/beratungsvorgaenge/2023/0501-0600/0506-23.html