The Bundesregierung (German Federal Government) intends to expand the powers of the customs authorities and reorganise the fight against financial crime. At a public hearing of the Finanzausschuss (Finance Committee) of the Deutscher Bundestag (German Federal Parliament), the bill was met with broad approval. At the same time, concerns were raised regarding potential staff redeployments, the scope of the planned asset investigation procedure and remaining regulatory gaps.
Finanzausschuss Discusses Expanded Customs Powers
The public hearing took place on 2 November 2026. The deliberations focused in particular on the government bill for an Act to Promote Greater Fairness by Strengthening the Customs Administration and Combating Financial Crime, Bundestagsdrucksache 21/8282 (Bundestag printed paper 21/8282).
The Bundeskabinett (Federal Cabinet) had adopted the bill on 12 August 2026. According to the Bundesregierung’s plans, the Act is to enter into force on 1 January 2027. The legislative process has not yet been completed; therefore, no final decision has been made.
Trade Union Sees Important Step for the Customs Administration
The Deutsche Zoll- und Finanzgewerkschaft regarded the bill overall as a significant step towards further developing the role of the customs administration as a federal security and financial authority. It particularly welcomed the proposed combination of coercive investigative powers with administrative instruments for tracing and recovering assets.
In the trade union’s assessment, this approach takes account of the changing security and financial policy environment. It highlighted as progress the fact that customs authorities would in future be able to take action against significant assets of unclear origin even outside conventional criminal proceedings.
However, the trade union warned against implementing organisational changes through mandatory staff redeployments. It argued that strengthening the customs administration must not come at the expense of existing areas of responsibility.
Organisational Restructuring and Greater Consolidation
At the hearing, the Generalzolldirektion (General Customs Directorate) referred to the increasing professionalisation of internationally operating criminal organisations. In its view, this development requires organisational changes within the customs administration.
Larger Units and More Flexible Staff Deployment
The reform is intended to consolidate responsibilities, create larger organisational units and enable staff to be deployed more flexibly. The customs administration expects this to result in a stronger focus on combating money laundering and financial crime.
Customs representatives also welcomed the planned additional powers of the Finanzkontrolle Schwarzarbeit (Financial Control of Undeclared Work unit). The key organisational objectives can be summarised as follows:
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Law enforcement responsibilities are to be consolidated to a greater extent within the Generalzolldirektion.
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Expertise is to be pooled and larger units are to be formed.
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Existing staff are to be deployed more flexibly.
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Greater emphasis is to be placed on combating money laundering within the customs administration.
The Bund Deutscher Finanzrichterinnen und Finanzrichter supported assigning jurisdiction over the new procedures to the Finanzgerichte (German fiscal courts). In its assessment, the courts have sufficient capacity. The government bill estimates that the additional staffing requirements of the fiscal courts resulting from the new procedure under §§ 54 ff. of the Zollkriminalitätsbekämpfungsgesetz (German Act on Combating Customs Crime) will cost approximately EUR 3.1 million.
Focus on Assets of Unclear Origin
One focus of the hearing was the planned administrative asset investigation procedure. It is also being publicly discussed in terms of a potential reversal of the burden of proof. It is intended to enable the state to deal with significant assets where there are doubts as to their lawful origin.
Bundesregierung Cites the State’s Information Deficit
The Bundesregierung justifies the new provisions by citing the difficulties involved in proving the unlawful origin of significant assets using proportionate means that comply with the rule of law. By contrast, the holder generally has access to the information needed to demonstrate lawful origin.
According to the explanatory memorandum to the bill, significant assets should generally have a value exceeding EUR 100,000. The Bundesregierung assumes that holders acting lawfully will generally be able to explain where such assets came from or the funds used to acquire them.
The procedure concerns the investigation of potential risks that may arise when substantial assets of unclear origin enter the legitimate economic and financial system. It does not constitute a final determination that the asset in question constitutes proceeds of a criminal offence.
Criticism of Classification as Preventive Policing
A university professor participating in the hearing pointed out that protecting confidence in the binding nature of the legal order is generally a matter for criminal law and criminal confiscation. In his view, the bill still does not adequately explain why this task should be assigned to preventive policing in the area concerned.
Nevertheless, he described the proposed provision as a workable compromise. The Deutsche Zoll- und Finanzgewerkschaft had long considered such an instrument necessary, particularly for taking action against organised crime and concealed asset structures.
Bundesrat Deliberations on the Bill
The Bundesrat (German Federal Council) considered the proposal at its 1068th session on 25 September 2026. Prior to this, the lead Finanzausschuss as well as the committees on internal affairs, legal affairs and economic affairs had recommended issuing an opinion on the bill pursuant to Art. 76 Abs. 2 GG (German Basic Law).
Call for More Extensive Provisions
According to the Bundesrat’s opinion, a reversal of the burden of proof in the confiscation of assets should be implemented during the further legislative process. The Bundesrat also requests an examination of whether § 59 of the planned Zollkriminalitätsbekämpfungsgesetz should be supplemented by a notification requirement.
This examination concerns cases in which the administrative asset investigation procedure is terminated because the unlawful origin of an asset has been admitted. The further parliamentary deliberations therefore concern not only the organisational strengthening of the customs authorities but also the specific design of the new procedure.
Criticism of Remaining Regulatory Gaps
In addition to broad approval, several objections to the scope of the bill were raised at the hearing. The organisation Finanzwende considered the proposed measures insufficient to effectively address certain forms of financial crime, such as Cum-Cum arrangements. It was also criticised at the hearing that the new instruments would not reach the actors behind Cum-Ex and Cum-Cum schemes.
The organisation Mafianeindanke criticised the absence of a provision allowing confiscated real estate or other assets to be transferred to non-profit organisations. It referred to corresponding provisions in Italy and their significance in combating organised crime.
Practical Implementation of the Geldwäschegesetz
In connection with the documentation and verification burden on businesses, the importance of the Geldwäschegesetz (German Anti-Money Laundering Act) for obtaining relevant information was emphasised. At the same time, reference was made to criticism of potential overregulation.
According to the view expressed at the hearing, the response should not be to remove requirements without replacement. Instead, the crucial factor is to ensure that statutory requirements are designed so that they can be implemented in practice.
Significance for Businesses and Asset Holders
The planned powers affect the interface between customs administration, preventive policing, asset recovery and tax-related matters. For businesses, investors and high-net-worth individuals, this may raise questions concerning documentation of the origin of significant assets as well as official investigation and audit procedures. MTR Legal Rechtsanwälte advises clients on related tax law matters; further information is available from its tax law advisory practice.
