GERMANY Law and Practice Contributed by: Bettina Mertgen, Felix Siebler, Michael Herold and Sebastian Faust, GvW Graf von Westphalen
7.3 Investigative Powers and Procedures German authorities have broad investigative pow - ers in defence and export-control matters. The Fed - eral Office for Economic Affairs and Export Control, customs authorities and other agencies may require information and documents, inspect shipments, and investigate suspected export-control, sanctions or licensing violations. Where administrative or criminal offences are sus - pected, prosecutors may compel document produc - tion, conduct interviews, search premises and seize evidence. In foreign-investment and national-security reviews, authorities may require detailed transaction information. Asset-freezing measures are mainly imposed under EU and UN sanctions regimes. Classified informa - tion remains subject to strict security rules, with safe - guards to protect sensitive data during investigations. 7.4 Dawn Raids and Unannounced Inspections Under German law, defence sector entities may be subject to unannounced dawn raids by law enforce - ment authorities. In a criminal proceeding there must in general be a judicial warrant ordering the dawn- raid, but the requirements to obtain such judicial war - rant are not very high. In practice, a judicial warrant is issued based on the suspicion that a crime was committed and if it is likely that the search will lead to the discovery of evidence. Natural as well as legal persons must tolerate the search. They have the right to contact and have a legal counsel present during the search. Companies should establish an internal procedure by which a legal counsel is informed imme - diately after a law enforcement authority has arrived. Beyond criminal proceedings, some administrative authorities hold independent, preventive rights of entry into defence sector premises without a judicial warrant for purposes such as export control oversight, war-weapons inspections, weapons manufacturer supervision, general trade supervision and tax audits. In addition, antitrust authorities (in particular, the Fed - eral Cartel Office and the European Commission) can conduct dawn raids in case of suspected infringe -
authorities may conduct formal investigations, includ - ing searches, seizures, interviews, and other meas - ures available under German criminal procedure law. In national-security-related foreign investment reviews, the Federal Ministry for Economic Affairs and Energy may investigate acquisitions of defence or security-sensitive businesses, request informa - tion, and impose conditions where concerns arise. In defence procurement, the Federal Ministry of Defence and its procurement agency, BAAINBw, oversee com - pliance and may refer suspected irregularities to the appropriate enforcement authorities. 7.2 Triggers for Investigation Regulatory investigations in Germany’s defence sector are commonly triggered by suspected export-control, sanctions or procurement violations identified through customs checks, Federal Office for Economic Affairs and Export Control reviews, intelligence received from other authorities, licensing irregularities, inter - nal reports, whistle-blower complaints, or referrals from domestic or foreign enforcement agencies. The Federal Office for Economic Affairs and Export Con - trol works closely with customs and other investiga - tive authorities as part of Germany’s export control enforcement system. Investigations may also arise from routine compliance audits and inspections, as well as from information disclosed in the media or obtained during regulatory reviews. German law imposes various mandatory reporting and record-keeping obligations on companies dealing with controlled military and dual-use goods, includ - ing licensing, notification and documentation require - ments under export control legislation. Companies must provide accurate information to the authorities and comply with ongoing reporting obligations where applicable. While voluntary self-disclosure is not generally required, companies often choose to report potential breaches proactively as part of their compliance and remediation efforts, particularly in the export control and sanctions context.
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