EU approves criminal penalties for violation or circumvention of sanctions

The European Union has approved the inclusion of assistance in circumventing sanctions, in particular, the ban on travel to the EU, in the list of criminal offenses, the EU Council said on Friday, UNN reports.

Details

"Today the Council adopted a law covering EU-wide minimum rules for the prosecution of violation or circumvention of EU sanctions in member states," the European institution said.

"Certain actions will now be considered criminal offences in all member states, for example helping to bypass a travel ban, trading in sanctioned goods or performing prohibited financial activities. Inciting, aiding and abetting these offences can also be penalised," the EU Council said.

As noted, the bloc's member states must ensure that violating EU sanctions is "punishable by effective and proportionate criminal penalties, which vary depending on the offence." "However, intentional violation of sanctions must give rise to a prison sentence as the maximum penalty. Those who have violated EU restrictive measures may additionally be subject to fines," the EU Council said.

Legal entities (i.e., companies) may also be held liable "when an offence has been committed by a person with a leading position in the organisation". In such cases, sanctions may include the disqualification of business activities and the withdrawal of permits and authorisations to pursue economic activities, the report notes.

It is reported that the directive will enter into force on the twentieth day after publication in the Official Journal of the EU. Member States have 12 months to transpose the provisions of the directive into their national law.

Addendum

The European Commission proposed this directive in December 2022 to limit sanctions circumvention and strengthen enforcement. In response to Russia's aggression against Ukraine, the EU has taken an unprecedented number of restrictive measures to weaken Russia's economic base and limit its ability to wage war.