Deal on penalties for EU sanctions violation

The draft law defines the conduct member states will need to criminalise. Actions which member states will label as criminal offences include: helping persons subject to Union restrictive measures to bypass an EU travel ban, trading sanctioned goods and running transactions with states or entities which are hit by EU restrictive measures.

Dissuasive penalties

The Council also wants member states to ensure that violating EU sanctions is punishable by effective, proportionate and dissuasive criminal penalties. The draft directive foresees penalties to vary depending on the offence.

Member states will also have to update their national laws so that aggravating circumstances are taken into account when determining the penalty. An aggravating circumstance for instance would be that the offence is committed in the framework of a criminal organisation or by a public official.

Stricter enforcement

Member states should also step up their efforts to make sure that EU sanctions are respected. For that they will be obliged to provide for a limitation period that allows for proper law enforcement. Member states also need to take measures to freeze and confiscate the proceeds from violating sanctions.

EU countries will furthermore be required to guarantee cooperation and coordination between its various law enforcement and judicial authorities. Cooperation on criminal investigations into sanction violation will also happen at European level – between member states, the Commission and EU agencies such as Europol or the European Public Prosecutor’s Office.

CJEU fines Poland €1 million per day for infringing the independence of judges

Background and next steps

Restrictive measures are an important component of the EU’s foreign and security policy toolbox. They can consist of for instance asset freezes, travel bans and import/export restrictions.

The enforcement of EU sanctions is a member state responsibility. But the types and levels of penalties in member states can vary because – so far – national systems that deal with the violation of EU sanctions differ significantly. Currently, member states are not required to criminalise violations and may thus apply administrative sanctions instead, and maximum criminal penalties range from 2 to 12 years of imprisonment.

In order to limit sanctions circumvention and tighten their enforcement, the Commission – on 5 December 2022 – proposed the present draft directive on the definition of criminal offences and penalties for the violation of Union restrictive measures.

More information: EU Council