The Act implementing Directive (EU) 2024/1260 on asset recovery and the confiscation of assets was signed into law on October 22, 2026, and promulgated in the Bundesgesetzblatt (Federal Law Gazette) on October 27, 2026. It is published as BGBl. 2026 I No. 320. The European Directive must be transposed into national law by November 23, 2026.
Implementation of European asset recovery requirements
The Bundeskabinett (Federal Cabinet) had adopted the bill in order to transpose the requirements of Directive (EU) 2024/1260 into German law on a one-to-one basis, according to the Bundesministerium der Justiz und für Verbraucherschutz (Federal Ministry of Justice and Consumer Protection). Federal Minister of Justice Stefanie Hubig stated that the purpose of the initiative was to deprive organized crime of its financial foundations.
The Directive concerns asset recovery and confiscation. Its particular focus is on cross-border cooperation and the provisional freezing of assets.
Jurisdiction of the public prosecution offices of the Länder
In the future, the Staatsanwaltschaften der Länder (public prosecution offices of the German federal states) are to act as judicial asset recovery offices. In this capacity, they may provisionally freeze assets across borders.
The provision thus strengthens cooperation in cases involving assets or competent authorities in multiple Member States. A reversal of the burden of proof does not form part of this Act.
Course of the legislative process
The Deutsche Bundestag (German Federal Parliament) considered the Federal Government’s bill, published as Bundestagsdrucksache 21/5869 (Bundestag Printed Paper 21/5869), for the first time on May 21, 2026. The bill was then referred to the competent committees for further deliberation.
The Rechtsausschuss (Committee on Legal Affairs) adopted its decision on September 23, 2026. The amendment made in this context did not concern asset recovery as such but resolved a conflict of statutory provisions in the Finanzdienstleistungsaufsichtsgesetz (German Financial Services Supervision Act).
The key stages of the process can be summarized as follows:
- The Federal Cabinet adopted the bill implementing the European Directive.
- The Bundestag held its first reading on May 21, 2026, and referred the bill to the committees.
- The Committee on Legal Affairs considered the legislation and amended a provision of the German Financial Services Supervision Act.
- The Bundestag passed the Act on September 24, 2026.
- The Bundesrat (Federal Council) considered the legislative resolution under the agenda item “Recovery of assets in the fight against organized crime.”
- After being signed into law on October 22, 2026, the Act was promulgated on October 27, 2026.
Financial impact of the new legislation
Additional federal expenditure
Annual additional expenditure of approximately EUR 339,000 is envisaged for the Federal Government. This expenditure is allocated to departmental budget 06 of the Bundesministerium des Innern (Federal Ministry of the Interior).
No compliance costs for businesses
According to the Federal Government’s bill, the Act does not give rise to any compliance costs for businesses. Based on the official cost calculation, the direct financial consequences therefore affect the federal budget, but not businesses.
Significance for cross-border proceedings
The new legislation establishes the domestic framework for implementing Directive (EU) 2024/1260. For companies, investors and high-net-worth individuals, issues relating to the freezing and confiscation of assets may become particularly relevant where business activities or assets have links to multiple Member States.
MTR Legal Rechtsanwälte advises clients on criminal law risks in a business context and on asset recovery measures. Further information is available from our white-collar criminal law advisory practice.
