Sanctions violations become criminal offence in the EU
New EU laws came into force in the European Union this week, criminalising sanctions violations and ordering that Member States ‘must ensure that violating EU sanctions is punishable by effective and proportionate criminal penalties.’
The European Commission said in a notice that the new rules that entered into force, 19 May ‘include a list of criminal offences related to the violation and circumvention of EU sanctions, such as for example: failing to freeze assets; breaching travel bans and arms embargoes; providing prohibited or restricted economic and financial services, transferring funds that should be frozen to a third party or providing false information to conceal funds that should be frozen.
‘The new rules also establish common basic standards for penalties for both natural and legal persons in all Member States, closing existing legal loopholes and increasing the deterrent effect of violating EU sanctions in the first place. They will also include enhanced rules on freezing and confiscation of proceeds and assets subject to EU sanctions,’ it said.
Member States have 12 months to incorporate the new regulations into their national legislation.
