The EU wants to see the violation of EU sanctions punished in a uniform way in the EU27. On Friday 2 December, the European Commission presented its directive to harmonise the types of offences and their penalties with regard to the violation of EU sanctions.
The text was, in fact, already ready, since it had been published by the Commission in May, when it proposed adding the violation of sanctions to the list of European offences (see EUROPE 12969/6). The EU Council approved the latter’s decision on 28 November and therefore paved the way for the continuation of the process (see EUROPE 13072/24).
The Directive details specific actions of violation or circumvention that constitute a European offence and sets minimum levels of penalties. This will “close existing legal loopholes and increase the deterrent effect”, according to the Commission.
Currently, only twelve Member States recognise the violation of sanctions as a criminal offence. In thirteen others, this may constitute a criminal offence, but also an administrative offence. For the remaining two, there is only an administrative offence available for qualifying a violation of sanctions. The maximum prison sentences varies between 2 and 12 years and maximum fines are between €1,200 and €5,000,000 across the member countries.
The offences
The European Commission therefore proposes that the following actions be deemed as offences under Article 83 TFEU: - making funds available to a sanctioned person or entity; - failure to freeze funds subject to sanctions; - allowing the entry or transit of an inadmissible person into the EU; - carrying out transactions with sanctioned third countries or goods and services that are subject to restrictive measures; - circumventing or attempting to circumvent a sanction by concealing funds or the identity of their owner. Attempting to do any of the above should also be an offence.
Inciting, aiding or abetting such offences is also covered by the Directive.
The penalties
Individuals who commit these offences may face up to 5 years in prison, according to the Directive. In some cases, which the European Commission considers to be less serious, the maximum penalty is one year.
However, these penalties only apply to offences that involve funds or economic resources of €100,000 or more.
As for companies, they may be fined at least 5% of their worldwide turnover, or at least 1% with regard to cases that are less serious.
The European Commission foresees a period of 6 months for the transposition of the Directive in the Member States.
See the directive: https://aeur.eu/f/4fx (Original version in French by Léa Marchal)