Federal Government presents Customs Finance Fairness Act to strengthen customs
The Federal Government has introduced into the Bundestag a draft act for greater fairness by strengthening the customs administration and combating financial crime. The draft bears the short title Zollfinanzgerechtigkeitsgesetz (ZFG, Customs Finance Fairness Act). According to the Bundesfinanzministerium (Federal Ministry of Finance), it was adopted by the Federal Cabinet on 12 August 2026 and is intended to enter into force on 1 January 2027.
With this initiative, the Federal Government is pursuing the objective of realigning customs as part of the state security structure and as a point of contact for business. The explanatory memorandum to the draft states that the proposed provisions are necessary in order to further strengthen Germany as a business and financial centre and to protect the democratic rule of law.
The ministerial draft had already entered interdepartmental coordination in February 2026. According to the Federal Ministry of Finance, the ZFG implements those elements of the Action Plan against Organised Crime that concern customs.
Reorganisation of the customs administration
Two specialist branches within the Generalzolldirektion
A central component of the draft is the organisational restructuring of the Generalzolldirektion (General Customs Directorate). It provides for an alignment into two specialist branches:
- “Customs duties and taxes”
- “Security and enforcement”
According to the draft, this internal bundling is to be reflected both at the level of the General Customs Directorate as the higher federal authority and at the local authorities. Investigation and enforcement units are to be merged in order to increase efficiency and operational capability.
Under the draft legislation, the central agency function of the Zollkriminalamt (Customs Criminal Investigation Office) is also to be transferred to the General Customs Directorate. It is to coordinate and direct the investigations of the future customs directorates.
Merger of local authorities
The current 41 Hauptzollämter (main customs offices) and eight Zollfahndungsämter (customs investigation offices) are to be merged. According to the Federal Government’s explanatory memorandum, the current 49 local authorities, some with overlapping responsibilities, are to become a total of 41 customs directorates. These are to be more clearly aligned and equipped with specialised task portfolios in the area of security and enforcement.
The main customs offices are to be renamed “customs directorates”. The new designation is not to become mandatory until 31 December 2027. In addition, tasks of the Zentralstelle für Sanktionsdurchsetzung (Central Office for Sanctions Enforcement) are also to be incorporated into the new directorates.
Finanzkontrolle Schwarzarbeit remains independent
No expansion of remit
According to the government draft, the Finanzkontrolle Schwarzarbeit (Financial Monitoring Unit to Combat Illicit Employment) is to be retained in its existing structure. It is to continue to exist as a separate organisational unit at the level of the higher federal authority and the local authorities.
The Federal Government announces that the staffing and budgetary strengthening planned for the Financial Monitoring Unit to Combat Illicit Employment will continue unchanged. Its central task remains combating undeclared work and illegal employment under the Schwarzarbeitsbekämpfungsgesetz (Act to Combat Undeclared Work and Unlawful Employment).
Under the draft, no new or additional tasks are to be assigned to the Financial Monitoring Unit to Combat Illicit Employment.
New powers relating to money laundering and assets of unclear origin
Specialised units at local customs authorities
The draft provides for specialised units to be established at the local customs authorities. These are to handle complex cases of international money laundering.
In addition, cooperation between the Zentralstelle für Finanztransaktionsuntersuchungen (Financial Intelligence Unit) and other actors is to be improved. Data exchange is also to be strengthened.
The draft assigns to the customs authorities police powers of criminal prosecution in significant money laundering cases with a foreign nexus. A case may be significant, among other things, where it is complex in structure, for example due to corporate networks or the commingling of legal and illegal cash flows. A threat to the standing and reputation of Germany as a financial and business centre is also to be capable of being used as a criterion for the significance of a case.
Administrative procedure outside criminal proceedings
The core of the reform is the Zollkriminalitätsbekämpfungsgesetz (Customs Crime Combating Act). It is intended to create a stand-alone administrative procedure for investigating and confiscating assets of unclear origin outside criminal proceedings.
Through § 5a of the Act, the customs administration is to be assigned the task of taking measures to protect confidence in the rule of law and in the economic and financial system. According to the Federal Government’s explanatory memorandum, clarifying risks that could arise from introducing significant assets into the legitimate economic and financial cycle is to become a preventive task of the customs administration. This is to apply irrespective of whether criminal proceedings are initiated or discontinued.
The draft builds on scenarios in which significant assets are seized by customs on the basis of different legal grounds. Even where there is no initial suspicion of a criminal offence, the Federal Government’s explanatory memorandum states that substantiated doubts may exist as to the lawful origin of such assets.
Thresholds for significant assets
An asset is generally considered significant from a value of more than EUR 100,000. For items subject to registration, the threshold is to be as low as EUR 50,000.
According to the explanatory memorandum, the Federal Government assumes that the holder of significant assets can generally demonstrate their lawful origin. By contrast, it is often difficult for the state to prove unlawful origin using proportionate means that comply with the rule of law.
In this context, the Federal Government refers to an “information deficit” on the part of the state. At the same time, it considers it reasonable for the holder of suspicious assets to disclose existing information that would prove lawful origin. Particularly in the case of significant assets with a value generally exceeding EUR 100,000, the explanatory memorandum states that virtually every law-abiding citizen will be able to explain where they come from or from what funds they were acquired.
Extended customs supervision
Valuables as a new area of application
Customs supervision is to be extended to valuables. These include, in particular, items such as jewellery, art or luxury goods.
Where money laundering or terrorist financing is suspected, a clearing procedure to establish origin is envisaged. This procedure is connected with the planned expansion of customs’ administrative powers in relation to assets of unclear origin.
Artificial intelligence as part of the reform
The Federal Ministry of Finance describes the reform as a modernisation programme for customs, which has just under 49,000 employees. In addition to administrative asset recovery, possible uses of artificial intelligence are also cited as key new powers.
In the further procedure, the Bundesrat (Federal Council) has called, among other things, for a data protection impact assessment, independent approval and regular reviews of quality and error rates for the use of AI.
Legislative procedure and parliamentary deliberation
Referral to the Bundesrat and Bundestag
According to the draft legislation, the initiative requires consent. It had previously been referred to the Bundesrat as printed paper 446/26 of 14 August 2026.
On 15 September 2026, the Bundesrat considered recommendations from its committees. On the recommendation of the committees on internal affairs, legal affairs and economic affairs, it called, among other things, for adjustments in cases where the origin of assets cannot be clarified under § 62(1) ZollKrimBG-E (draft Customs Crime Combating Act).
The first reading in the Bundestag took place on Friday, 9 October 2026. Parliamentary State Secretary at the Federal Ministry of Finance Michael Schrodi spoke on behalf of the Federal Government. The debate was scheduled for 30 minutes. The draft was then referred to the committees.
Public hearing in the Finance Committee
On Monday, 2 November 2026, from 2:00 p.m. to 3:30 p.m., the Bundestag Finance Committee will hold a public hearing in the Paul-Löbe-Haus on Bundestagsdrucksache 21/8282 (Bundestag printed paper 21/8282). The registration deadline is set for 1 November 2026.
An application by the Bündnis 90/Die Grünen parliamentary group on combating money laundering and organised tax evasion is also to be considered. The applicants named include Members of the Bundestag Max Lucks, Katharina Beck and Marcel Emmerich.
The legislative procedure was preceded by a Kleine Anfrage (minor interpellation) by the Bündnis 90/Die Grünen parliamentary group on the ministerial draft. This concerned, among other things, the definition of significant cases of financial crime.
Financial impact of the draft
Conversion and staffing expenditure
The government draft also contains information on the financial consequences of the reform. Under departmental budget 08, one-off conversion expenditure of around EUR 82 million is estimated for 2027 and around EUR 1 million for 2028.
One-off staffing expenditure of around EUR 9.7 million is planned for the customs administration. The additional requirements of the Bundeskriminalamt (BKA, Federal Criminal Police Office) and the Bundesministerium des Innern (Federal Ministry of the Interior) are to be offset under departmental budget 06.
For the Finanzgerichte (finance courts), the draft anticipates additional staffing costs of around EUR 3.1 million due to the new procedure under §§ 54 et seq. ZollKrimBG.
Criticism and constitutional-law assessment
Objections from associations and voices from practice
The draft has not only been met with approval. The Bundesrechtsanwaltskammer (Federal Bar) and the Deutsche Anwaltverein (German Bar Association) sharply criticise the initiative and speak of a “policisation of the customs authorities”. The Federal Bar also considers the timing of the reform, shortly before the EU anti-money laundering package becomes applicable, to be of little practical sense.
There are also differentiated assessments from among customs employees. The Gewerkschaft der Polizei, Bezirksgruppe Zoll (Police Trade Union, Customs District Group), welcomes the aim of the reform but considers the envisaged target structure for customs to be of limited suitability for police tasks. The chair of the Customs District Group is Frank Buckenhofer.
Debate on confiscation and threat prevention
Criticism is directed in particular at the planned instrument for confiscating assets of unclear origin. Critics continue to regard the legal fiction of a threat in cases of unclear origin under § 52b(6) ZollKrimBG-E as problematic and consider the government draft to be only partially toned down compared with the ministerial draft.
In the Verfassungsblog, contradictions are identified in the new confiscation instrument between threat prevention and criminal law, as well as considerable doubts as to constitutionality. This assessment concerns the legal classification of the planned administrative procedure outside criminal proceedings and its relationship to existing instruments under criminal procedure law.
Significance for companies, investors and asset holders
The Customs Finance Fairness Act concerns key interfaces between customs law, anti-money laundering, asset recovery and criminal prosecution. For companies, investors and high-net-worth individuals, the envisaged procedures for clarifying the origin of significant assets and the expanded powers of the customs authorities may in particular have considerable practical relevance.
As the legislative procedure is still under parliamentary deliberation, amendments to the draft remain possible. The relevant point of reference is the current status of the legislative procedure at any given time.
MTR Legal Rechtsanwälte advises clients on issues at the interface between corporate practice, criminal prosecution risks and official measures. Those affected by legal issues in connection with financial crime, allegations of money laundering or asset-related investigative measures can find further information at legal advice in white-collar criminal law.
