Internal Investigations – Corporate Defence and Compliance in Germany

Internal investigations have become an integral element of responsible corporate governance in Germany. Beyond identifying and remediating misconduct, they demonstrate integrity to the public and key stakeholders. This article outlines the evolution, purpose and process of internal investigations, highlights benefits and risks, and explains who should conduct them. For immediate advice, please contact our English-speaking criminal lawyers in Frankfurt or see our criminal defence practice.

Background and Development

Internal investigations originated in the United States, where the SEC encouraged companies to examine accounting scandals and report results. Over time, such inquiries influenced charging and sentencing decisions, creating incentives for thorough internal reviews. As German companies entered US markets, they adopted these practices. In Germany, risk-management duties arise from corporate and financial-market rules, but there is no general legal obligation to mandate external experts. High-profile cases and European governance initiatives helped establish internal investigations as part of modern Compliance & Corporate Governance. To set up compliant reporting channels, see our page on ombudspersons and whistleblowing.

Definition and Purpose

In the absence of a statutory definition, internal investigations can be understood as company-initiated fact-finding measures, often with neutral external specialists, to clarify suspected misconduct comprehensively. They are the repressive counterpart to compliance: while compliance prevents violations, internal investigations uncover and document them. For procedural context, see our overview of German criminal procedure.

How Internal Investigations Arise and Proceed

Investigations typically begin with a report or whistleblower tip made to a compliance officer or an ombudsperson. After triage, the compliance function initiates the inquiry and sets out a plan defining scope, measures and timeline.

• • Planning – define objectives, legal basis, roles and milestones; preserve evidence and implement legal holds.
• • Data collection – secure, review and structure internal and external data; maintain chain of custody and authenticity, with professional e-discovery where needed.
• • Interviews – conduct context interviews, then subject-matter interviews; document rights notices and representation issues.
• • Reporting – compile a clear investigation report with findings, remediation steps and recommendations.
• • Documentation – keep a verifiable record of steps and decisions to support later use by regulators or courts.

Benefits of Internal Investigations

• • Early detection and remediation of misconduct; prevention of further violations.
• • Damage mitigation and protection of corporate value and reputation.
• • Information advantage for dialogue with authorities and avoidance of disruptive public searches.

Legal Risks and How to Manage Them

With professional, lawful conduct, risks are manageable. Pitfalls may include overstepping public-authority functions, breaches of confidentiality or communications secrecy, coercive practices or conflicts of interest. Clear protocols, legal oversight and training help prevent errors. Our criminal defence team supports design and execution to minimise exposure.

Who Should Conduct Internal Investigations?

Investigators should be qualified lawyers with strong experience in criminal and criminal-procedure law, plus labour and data-protection expertise and industry familiarity. Skills should include corporate-forensic methods, secure interviewing, and coordination with public authorities. Availability, clear replacement arrangements and high social competence are essential. Specialist criminal lawyers are particularly well suited — meet our attorneys.

Conclusion

When conducted carefully, internal investigations deliver significant value and are now a fixed component of effective corporate governance in Germany. Although primarily reactive, they end ongoing misconduct, prevent new incidents and reduce harm. For a tailored plan, please contact us.

FAQ: Internal Investigations

What are internal investigations and when are they useful?
Company-led inquiries into potential rule breaches. They are appropriate when concrete indications arise, after compliance incidents or where regulatory action is imminent. Set up secure reporting via our ombudspersons.

What does a typical investigation look like?
Planning, evidence preservation and data review, interviews, and a documented report — always with defensible processes; see also procedure essentials.

What are the key advantages of starting early?
Damage limitation, prevention of further offences, informed dialogue with authorities and reduced risk of public searches.

What risks exist for investigators?
If handled improperly: confidentiality breaches, coercion risks or conflicts. Professional, legally robust execution minimises exposure. Our defence team can help.

Who should carry out investigations?
Experienced investigators — ideally specialist criminal lawyers with corporate and forensic experience and interfaces to employment and data-protection law. Meet our team.

How do investigations fit into compliance and governance?
They are the repressive counterpart to compliance, strengthening governance and external perception. For immediate support, contact us.

Contact Our Criminal Defence Lawyers in Frankfurt and Nationwide

Buchert Jacob Peter conducts and supervises internal investigations and defends companies and executives across Germany.

• • Dr Caroline Jacob – Specialist Lawyer for Criminal Law
• • Frank M. Peter – Specialist Lawyer for Criminal Law
• • Of Counsel: Prof. Dr Frank Peter Schuster
• • Cooperation Partner: Frank Wehrheim – Tax Advisor and former Tax Investigator

📞 Telephone: +49 69 710 33 330
✉️ Email: kanzlei@dr-buchert.de

Further reading: Ombudspersons & Whistleblowing | Criminal Defence | Criminal Defence in Germany | Our Attorneys | Contact

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