EU Law and Practice Contributed by: Edward Borovikov, Laurens Engelen, Xiaoyi Tang and Semen Medvedkov, Dentons
2. Overview of Regulatory Field 2.1 Primary Regulators
violation of restrictive measures is duly criminalised. Consequently, certain actions are considered criminal offences in all member states – for example, helping to bypass a travel ban, trading in sanctioned goods or performing prohibited financial activities. Inciting, aid - ing and abetting these offences can also be penalised. These penalties are subject to variation depending on the nature and severity of the specific offence. Never - theless, it is a prerequisite that intentional violations of sanctions are met with a maximum penalty, which includes imprisonment. Depending on the governing member state law, cor - porate entities are not exempt from these regulations. In instances where an offence is perpetrated by an individual occupying a senior role within a company, the company itself can be held liable. The repercus - sions for such infringements can be severe, poten - tially leading to disqualification from conducting cer - tain business operations as well as the withdrawal of licences, permits and authorisations essential for carrying out economic activities. It is important to note that the intricacies of sanctions enforcement, and the corresponding penalties, are deeply rooted in the legislative environment of each member state. As such, the exact nature of the pen - alties and the processes for their enforcement can only be fully understood within the context of each jurisdiction’s legal system. 2.2.3 Civil Enforcement Action No information has been provided for this jurisdiction. 2.2.4 Criminal Enforcement Action No information has been provided for this jurisdiction. 2.2.5 Mitigation Organisations can adopt a variety of measures to avoid or lessen the penalties for sanctions breaches. Depending on the business activities and geographi - cal footprint, establishing a comprehensive policy framework that is duly and regularly updated may be highly recommended. In its daily operations, organisa - tions will want to ensure that they conduct thorough risk assessments and implement robust due diligence processes, which are critical for identifying and miti -
Sanctions are adopted at EU level. They are generally agreed by consensus within the Council of the EU, following proposals from the High Representative of the Union for Foreign Affairs and Security Policy. Dis - cussions take place in the relevant Council working groups. Restrictive measures are specified in Com - mon Foreign and Security Policy (CFSP) Council deci - sions. If these decisions involve economic or finan - cial measures, they must be implemented through a Council regulation. The High Representative and the Commission, primar - ily led by the Directorate-General for Financial Stabil - ity, Financial Services and Capital Markets Union (DG FISMA), then present a joint proposal for a regulation. This joint proposal is reviewed and discussed by the appropriate Council working groups before adoption. The CFSP Council decision and the Council regula - tion are adopted simultaneously to ensure they are effective at the same time. The primary responsibility for implementing and enforcing EU sanctions lies with the competent EU member state authorities, while the Commission, as the guardian of the treaties, oversees their proper implementation and enforcement across member states. 2.2 Enforcement 2.2.1 Enforcement Responsibilities The primary responsibility for implementing and enforcing EU sanctions rests with member states, while the Commission oversees their proper imple - mentation and enforcement. The competent national authorities are tasked with assessing whether there has been a breach of legislation and with taking the necessary measures. 2.2.2 Breaching Sanctions Under EU law, member states are competent to uphold EU sanctions through the implementation of effective and proportionate criminal penalties. In 2022, the Council added violation of the sanctions to the list of “EU crimes” included in the Treaty on the Functioning of the European Union. Subsequently, in 2024, the Council adopted rules to ensure that the
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