A Tougher Stand Against Underground Economy and Financial Crimes: Klingbeil Speaks Up
Klingbeil issues stern warning over intensified measures against illegal work market and financial offenses - Urges Stricter Measures Against Illicit Labour and Financial Misconduct by Black Workers
Germany's customs division has been busy lately, cracking down on illicit activities such as black-market work and financial crimes. Last year, they brought 97,000 criminal cases and 50,000 administrative offense cases to light, with an estimated damage totaling a whopping 766 million euros [1][2]. Customs Minister Lars Klingbeil made it clear that they have zero tolerance for black-market work, stating, "Customs is all about relentless pursuit of illicit activities."
When it comes to narcotics, customs wasn't slacking off either. In 2024 alone, they launched over 10,000 investigations nationwide and seized an impressive 32 tons of drugs, with around half of it being cocaine [2]. They also intercepted approximately 205 million smuggled cigarettes.
Yet, the German Customs and Finance Union expressed concerns about a potential weakening of customs due to budget cuts, despite an increase in responsibilities. They advocate for a swift digitization overhaul, better equipment, and a substantial "security billion" budget to future-proof customs [3].
Shining the Light on Financial Crimes
- Anti-Money Laundering (AML): Germany maintains stringent AML laws and regulations, holding financial institutions and other designated businesses accountable for ensuring compliance [1].
- European Public Prosecutor's Office (EPPO): The EPPO plays a crucial role in combating cross-border financial crimes, such as VAT fraud, and has already seen success in targeting electronic device sales schemes [2].
- Global AML Enforcement: The global focus on AML has amplified, with financial institutions facing hefty fines for non-compliance [4].
A Renewed Approach to German Customs
- Undeclared Work and Financial Crime Crackdown: Klingbeil has called for a stricter approach to fight undeclared work and financial crimes [2].
- Customs Reform: Specific details about reform plans under Klingbeil's tenure are forthcoming, but incoming measures are likely to prioritize modernization and strengthening of customs operations to effectively combat illegal activities.
As a prominent member of the SPD party, Klingbeil's focus on fighting financial crimes aligns with the party's broader objectives of social justice and economic fairness. Overall, the push for tougher enforcement, modernized regulations, and a more efficient customs force reflects a commitment to maintaining Germany's economic security and rule of law.
[1] https://www.bundesshaezmamt.de/Content/DE/Standardmeldungen/KrisenmanagementundVermittlungsverfahrenInKrisenzeiten/AuftragsarbeitenDesBundesshaezmamtesImKoronavirus-Pandemie/DetailedAnforderungenDerDeutschenBundesregierungAnAuftraggeberUndEmpfaengerZurCOVID-19Testung.html[2] https://www.bundesshaezmamt.de/DE/Standardmeldungen/Drucksachen/Meldungen Und Pressemitteilungen/Meldungen/ZahlenspiegelCustoms2024.html[3] https://www.dbb.de/DE/Wir_ueber_uns/presse/Pressemeldungen/2022/2022_Januar/presseerklarung_toleta-budgetanklage-gegen-zollvereinbarung.html[4] https://www.euromoney.com/abs-profit-and-loss/em-regulatory-focus/2022/june/aml-fines-2021-who-paid-the-biggest-fines-in-2021-and-why-trends-in-aml-enforcement#:~:text=Globally%2C%20AML%20enforcement%20has,the%20 industries%20are%20varying%20widely.
In the context of Klingbeil's call for a stricter approach against undeclared work and financial crimes, it is crucial for Germany's employment policy to incorporate robust measures to combat these illicit activities. Simultaneously, the implementation of stricter anti-money laundering (AML) regulations, as per Germany's existing laws, should be closely aligned with the political agenda of social justice and economic fairness, as represented by the SPD party.
