Topic · Legal consequences
Penalties for sanctions violations
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A breach of sanctions and the making-available prohibition is a criminal offence under Section 18(1) of the German Foreign Trade Act (AWG), punishable by three months to five years in prison, or six months to ten years in particularly serious cases (Section 18(6a) AWG). Companies may additionally face a corporate fine of up to €40 million (Section 19(7) AWG). Managing directors who breach their supervisory duties face personal fines of up to €1 million (Section 130(3) of the German Administrative Offences Act, OWiG).
What changed with the 2026 AWG amendment?
The AWG amendment entered into force on 6 February 2026 and implements Directive (EU) 2024/1226. It tightens criminal sanctions law: the sentencing range extends to ten years in particularly serious cases (Section 18(6a) AWG), numerous former administrative offences are now criminal offences, and knowledge of a violation triggers a reporting duty backed by criminal penalties (Section 18(5a) AWG). The former exemption from punishment following voluntary disclosure has been abolished.
When do higher sentencing ranges apply?
Higher sentencing ranges apply only to aggravated offences. Anyone who acts on a commercial basis or as a member of a gang, works for a foreign intelligence service or establishes a connection with weapons of mass destruction faces a minimum sentence of one or two years respectively under Section 18(7) and (8) AWG. The upper limit is the general maximum of fifteen years under Section 38(2) of the German Criminal Code (StGB). On 2 March 2026, Würzburg Regional Court sentenced a car dealer to six years in prison for commercially motivated violations of the Russia Embargo Regulation and ordered the confiscation of approximately €20 million.
What penalties can the company face?
Legal persons and associations of persons may face fines of up to €40 million (Section 19(7) AWG). Section 30 OWiG also allows a corporate fine to be imposed on the company if a person in a management position commits a violation.
Is the managing director personally liable?
Yes. Under Section 130(1) OWiG, failing to provide the necessary supervision in a business and thereby enabling a violation constitutes an administrative offence. Managing directors and management board members may personally face fines of up to €1 million. Section 19(8) AWG also extends the €40 million framework to proceedings under Section 130(1) OWiG, covering the breach of supervisory duties itself. Missing or undocumented sanctions list screening may constitute precisely such a breach. An effective, documented screening system significantly reduces this risk.
What applies to transactions with a US nexus?
Transactions with a US nexus are additionally subject to the rules of OFAC, the US sanctions authority. Civil penalties can reach approximately US$377,700 per violation or twice the transaction value, regardless of fault (strict liability). Intentional violations can attract criminal penalties of up to US$1 million per violation and up to 20 years in prison.
Which laws form the legal basis?
The relevant laws are the German Foreign Trade Act (AWG) and Foreign Trade and Payments Ordinance (AWV), EU sanctions Regulations 269/2014 and 833/2014, Directive (EU) 2024/1226, and Sections 30 and 130 of the German Administrative Offences Act (OWiG). IEEPA and OFAC regulations additionally apply to transactions with a US nexus.
How can you reduce the risk?
Screen business partners before providing goods, services or payments, and document the check in a traceable way. Am I Compliant is built for this process: upload a document, screen against the sanctions lists held in the system, and receive the result as an audit-proof PDF with a verification URL for your records.
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Am I Compliant is an information and data processing service and does not provide legal advice. Results are research findings; the legal assessment and decision rest with the user.
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Am I Compliant is an information and data processing service and does not provide legal advice. Results are research findings; the legal assessment and decision rest with the user.