Sections 30, 130 German Administrative Offences Act (OWiG): Effective compliance shifts into focus

In recent years, compliance has already become a central component of responsible corporate governance. Responsibility for compliance stems from the duty of management and companies to act in accordance with the law. The management is required to monitor employees and sources of risk, and to structure the organisation in such a way that no legal violations are committed within or by companies. 

The planned reform of sections 30 and 130 German Administrative Offences Act (OWiG) reaffirms this responsibility and emphasises the importance of compliance measures in preventing misconduct. It is intended to provide an incentive for companies to implement, further develop or improve their compliance structures. This blog post looks at the added value of compliance for companies and their management – using risk analysis as an example – and demonstrates that effective compliance can be key to mitigating penalties should misconduct occur nonetheless.

Status of the planned reform of the German Administrative Offences Act (OWiG) and point of contention

The process of implementing Directive (EU) 2024/1203 has not yet been finalised. A particular point of contention is how specifically compliance measures will be enshrined in law. Regardless of the outcome of the debate, however, the requirements for a compliance management system continue to grow in importance.

The bill introduced by the German government on 26 May 2026 increases the maximum level of fines imposed on companies and, for the first time, establishes a general standard for determining their amount. Compliance measures are also taken into account here even though they are not explicitly mentioned. Section 30 Draft German Administrative Offences Act (OWiG-E) sets out, among others, the following criterion for deciding on the appropriate penalty: 

"When determining the fine in accordance with the basic principles set out in sentence 1, the circumstances supporting and those opposing the legal person or association of persons must be weighed against one another. In particular, the following factors must be taken into account: 

[…]

5. measures taken by the legal person or association of persons, either before or after the offence or administrative offence, to prevent and detect offences and administrative offences for which it would be liable under paragraph 1"

(Source: BT-Drs. 21/6133, p. 15 f.)

In its opinion dated 12 June 2026, the German Federal Council calls for specific compliance measures to be explicitly enshrined in law – as a benchmark for necessary supervisory measures and for determining the amount of administrative fines. Section 130 Draft German Administrative Offences Act (OWiG-E), to which section 30 Draft German Administrative Offences Act (OWiG-E) is intended to refer, provides in particular for the following key elements of a compliance management system:

"Supervisory measures are required which are appropriate and reasonable, taking into account the size, nature and organisation of the business or company and the hazards it poses." Appropriate measures include, in particular,

1. the careful selection, instruction and monitoring of employees and supervisors,

2. the regular identification and assessment of risks arising from the business or company that could lead to criminal offences and administrative offences being committed, 

3. the adoption and ongoing development of guidelines and instructions, as well as the training of employees, with the aim of preventing corporate criminal offences and administrative offences, 

4. a procedure enabling employees, while maintaining confidentiality, to report indications of possible corporate offences or administrative offences to an appropriate authority, and 

5. the investigation of circumstances giving rise to suspicion of corporate offences or administrative offences, and the punishment of such misconduct”

(Source: BR Drs 266/26, p. 19.)

Compliance creates added value for companies and management – risk analysis as an example

Compliance measures do not merely serve to meet legal requirements; they also create significant added value for companies themselves. This is particularly evident in risk analysis, which the German Federal Council also explicitly mentions (no. 2). 

The purpose of risk analysis is to carefully identify and assess company-specific risks in relation to unlawful conduct. This requires that it be tailored to the company in question. The following factors are decisive in this regard:

• size and organisational structure
• field of business
• The structure of key processes in finance, procurement, production, sales and, where applicable, in overseas subsidiaries

This applies both to preventive risk analyses and to risk analyses conducted in response to incidents of misconduct within companies.

On the one hand, the results of the risk analysis form the foundation of the compliance management system. This can only be effective if it is based on the company's specific risk profile and includes measures that are precisely tailored to its needs. Furthermore, the compliance management system is not a static model. Risk analyses need to be carried out regularly to review the rules and business processes for efficiency, practicality and acceptance.

On the other hand, risk analyses give concrete form to the management's duty of supervision. Only those who are aware of the specific risks can take effective measures and prevent company-related violations of the law. 

Effective compliance can reduce fines

Compliance measures are not only effective preventative tools, but also an important factor in mitigating penalties. Investments in compliance measures will pay off even more in the future. According to the German government and the German Federal Council, both preventive and reactive compliance measures should help to reduce fines. The decisive factor is whether companies make serious, comprehensive and effective efforts to act in accordance with the law.

Conversely, fines may be increased if the compliance management system exists only on paper, serves as a cover for misconduct, is deliberately circumvented by management, or has significant deficiencies.

Planned reform of the German Administrative Offences Act (OWiG) as an incentive for companies

Compliance pays off! It remains to be seen whether the German Administrative Offences Act (OWiG) will enshrine specific compliance measures. One thing is already clear: The importance of compliance continues to grow. This also presents an opportunity to view compliance not merely as an obligation, but as a strategic advantage.

Companies should use the planned reform as an opportunity to critically review their compliance management system. It is crucial that the measures are based on the company's own risk profile, are embedded in its mission statement, and not only work in practice but are also put into action.