Banking and Capital Market Criminal Law

Banks and financial services firms, executives and market participants are often in the focus of investigative and supervisory authorities regarding the banking and capital market criminal law. Investigations are often caused by checks of the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin), the German Federal Bank or the stock market supervisions of the German state as well as the trade monitoring bodies of the exchanges. International companies related to the US additionally are subject to the supervision by the American supervisory and investigative authorities SEC, the DOJ or district attorneys, particularly if they are listed on US Stock Exchanges.

 

Relevant offences under the German Criminal Code (StGB) are

 

  • breach of trust pursuant to Section 266 StGB,
  • fraud to the detriment of customers pursuant to Section 263 StGB and
  • capital investment fraud according to Section 264a StGB.

 

Criminal and regulatory offences can also be found in special laws, such as the Investment Tax Act (InvStG) and the Securities Trading Act (WpHG). The so-called insider trading, i.e. the use of internal information for trading, market manipulation and the prospectus fraud are often subject to these procedures. Furthermore, the violation of the provisions of the German Banking Act (KWG) stating regulatory as well as criminal offences (e.g. Section 54a KWG) can result in high monetary and custodial sentences.

 

A defense in the banking and capital market criminal law requires profound knowledge regarding the international special legal provisions. Juergen Klengel advises numerous individuals, members of the executive and supervisory board, employees of financial institutions as well as national and international companies in dealing with authorities in connection with the threat of coercive measures. This includes not only extra-judicial conflict resolution but also the defense in violations against the German Securities Trading Act and the Investment Tax Act by the BaFin, German public prosecutor’s offices and international authorities. As a defender of companies, business managers and executives of banks and financial institutions, Juergen Klengel has advised numerous clients and dealt with various issues in the field of banking and capital market criminal issues.