The EU officially proposes the criminalization of sanctions violations

The EU officially proposes the criminalization of sanctions violations

The European Commission proposed to introduce criminal liability for violation of EU sanctions, according to the message of the Euro Institute.

 

 "Today, the European Commission puts forward a proposal to harmonize criminal offenses and punishment for violations of EU restrictive measures. As long as Russian aggression against Ukraine continues, it is very important that EU restrictive measures are fully implemented, and that violations of these measures do not pay off. The European Commission's proposal sets out general EU rules, which will facilitate the investigation, prosecution and punishment for violations of restrictive measures in all EU member states," the message reads.

 

 The Euroinstitute pointed out that the implementation of EU sanctions after Russia's attack on Ukraine shows the difficulty of identifying assets belonging to oligarchs who hide them in different jurisdictions with the help of complex legal and financial structures. "The proposed Directive will establish the same level of punishment in all member states. Thus, it will close existing legal loopholes and, first of all, increase the deterrent effect of violating EU sanctions," the EC noted.

 

 The main elements of the proposal include:

 

 List of criminal offenses that violate EU sanctions, such as:

 

 provision of funds or economic resources at the disposal or benefit of an authorized person, organization or body;

 

 inability to freeze these funds;

 

 providing the opportunity for authorized persons to enter the territory of the member state or their transit through the territory of the member state;

 

 conclusion of agreements with third countries, which are prohibited or restricted by EU restrictive measures;

 

 trade in goods or services, the import, export, sale, purchase, transfer, transit or transportation of which is prohibited or restricted;

 

provision of financial activities that are prohibited or restricted;

 

 provision of other prohibited or restricted services, such as legal advice, trust services and tax advisory services.

 

 Offenses will cover circumvention of EU restrictive measures: this means circumventing or attempting to circumvent restrictive measures by concealing funds or concealing the fact that a person is the ultimate owner of funds.

 

 General basic standards of punishment: depending on the offense, an individual may be subject to the maximum punishment in the form of deprivation of liberty for a term of not less than five years; Enterprises may be fined in the amount of at least 5% of the total turnover of the legal entity (enterprise) in the financial year preceding the decision on the fine.

 

 The proposal will now be discussed by the European Parliament and the Council of the EU as part of the normal legislative procedure.



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The European Commission proposed to introduce criminal liability for violation of EU sanctions, according to the message of the Euro Institute.

 

 "Today, the European Commission puts forward a proposal to harmonize criminal offenses and punishment for violations of EU restrictive measures. As long as Russian aggression against Ukraine continues, it is very important that EU restrictive measures are fully implemented, and that violations of these measures do not pay off. The European Commission's proposal sets out general EU rules, which will facilitate the investigation, prosecution and punishment for violations of restrictive measures in all EU member states," the message reads.

 

 The Euroinstitute pointed out that the implementation of EU sanctions after Russia's attack on Ukraine shows the difficulty of identifying assets belonging to oligarchs who hide them in different jurisdictions with the help of complex legal and financial structures. "The proposed Directive will establish the same level of punishment in all member states. Thus, it will close existing legal loopholes and, first of all, increase the deterrent effect of violating EU sanctions," the EC noted.

 

 The main elements of the proposal include:

 

 List of criminal offenses that violate EU sanctions, such as:

 

 provision of funds or economic resources at the disposal or benefit of an authorized person, organization or body;

 

 inability to freeze these funds;

 

 providing the opportunity for authorized persons to enter the territory of the member state or their transit through the territory of the member state;

 

 conclusion of agreements with third countries, which are prohibited or restricted by EU restrictive measures;

 

 trade in goods or services, the import, export, sale, purchase, transfer, transit or transportation of which is prohibited or restricted;

 

provision of financial activities that are prohibited or restricted;

 

 provision of other prohibited or restricted services, such as legal advice, trust services and tax advisory services.

 

 Offenses will cover circumvention of EU restrictive measures: this means circumventing or attempting to circumvent restrictive measures by concealing funds or concealing the fact that a person is the ultimate owner of funds.

 

 General basic standards of punishment: depending on the offense, an individual may be subject to the maximum punishment in the form of deprivation of liberty for a term of not less than five years; Enterprises may be fined in the amount of at least 5% of the total turnover of the legal entity (enterprise) in the financial year preceding the decision on the fine.

 

 The proposal will now be discussed by the European Parliament and the Council of the EU as part of the normal legislative procedure.