Netherlands proposes major overhaul of EU sanctions enforcement system
The Netherlands has circulated a non-paper – an informal discussion document – proposing to strengthen European cooperation on sanctions implementation and enforcement, calling for new EU-wide risk assessments, minimum enforcement standards and enhanced compliance rules for high-risk businesses.
‘The effectiveness of EU sanctions are highly dependent on the effective and consistent implementation and enforcement across the Union,’ the document states, proposing seven key reforms including ‘implementation by design’ principles for new sanctions and an EU-wide assessment of circumvention risks.
The Dutch proposal, dated 22 November, calls for expanding the EU Commission’s Sanctions Information Exchange Repository to better analyse ownership structures and sanctions evasion patterns, while creating a database of relevant case law and enforcement actions.
‘One of the challenges is to bring the right sorts of data together to get a better insight into circumvention patterns,’ it states. ‘For instance, information on frozen assets and self-reporting can be most effectively cross-checked at EU-level to verify whether all frozen assets were properly identified.’
The paper suggests establishing baseline compliance rules for companies at high risk of sanctions violations, noting that current guidance ‘lacks enforceability’ as authorities can only intervene after breaches occur. It recommends using the Internal Security Fund to strengthen Member States’ enforcement capabilities.
The non-paper comes as the EU approaches the third anniversary of its Russia sanctions regime in February, with the Netherlands inviting Member States to ‘support these ideas and sponsor this paper.’
