Transparency on Corporate Investments
Berlin, 28 November 2024 (hib). The Bundestag today passed the Transparency Act on Corporate Investments (Transparenzgesetz über Unternehmensbeteiligungen). The law requires companies with more than 250 employees to disclose their financial and non-financial investments in companies located in countries outside the EU and the European Economic Area (EEA).
The law is intended to increase transparency and prevent corruption and money laundering. Companies must disclose their investments in companies involved in the extraction of raw materials, energy production, and the arms industry. The disclosures must include information on the ownership structure, the amount invested, and the purpose of the investment.
The law also requires companies to disclose their investments in companies that are owned or controlled by public officials or politically exposed persons (PEPs). PEPs include heads of state, government ministers, members of parliament, and senior officials in government agencies and international organizations.
The disclosures must be made in a publicly accessible register maintained by the Federal Ministry of Economics and Technology. The register will be available online and will be updated on a regular basis.
The law is expected to come into force on 1 January 2025. Companies will have one year to comply with the disclosure requirements.
Reactions to the law
The law has been welcomed by transparency advocates. “This law is a major step forward in the fight against corruption and money laundering,” said Transparency International Germany. “It will make it much more difficult for companies to hide their shady dealings.”
However, some businesses have expressed concerns about the law. They argue that it is too burdensome and that it will put German companies at a competitive disadvantage.
The government has defended the law, saying that it is necessary to ensure transparency and prevent corruption. “We need to know who owns and controls our companies,” said Economics Minister Robert Habeck. “This law will help us to shine a light on the dark corners of the corporate world.”
Next steps
The Bundestag will now send the law to the Bundesrat for approval. The Bundesrat is the upper house of the German parliament and represents the interests of the states. Once the Bundesrat has approved the law, it will be signed by the President and published in the Federal Law Gazette.
Transparenz über Unternehmensbeteiligungen
The AI has provided us with the news.
I’ve asked Google Gemini the following question, and here’s its response.
Kurzmeldungen (hib) a new article on 2024-11-28 15:32 titled “Transparenz über Unternehmensbeteiligungen”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
28