Second Sanctions Enforcement Act: Draft Law Increases Pressure On Companies

On Friday, 11 November 2022, the Bundestag factions of the traffic light coalition introduced a draft for a so-called second Sanctions Enforcement Act (Sanktionsdurchsetzungsgesetz II; SDG II) into the Bundestag. The new regulations are to supplement the Sanctions Enforcement Act I (SDG I) already passed by the Bundestag in May 2022. If the legislative process proceeds swiftly, the legislative package could still enter into force this year. For companies, the new Act primarily means that public pressure to comply with sanctions is increasing further. Sanctions and business partner screenings therefore remain indispensable tools for avoiding legal violations and official investigations.