FRANCE Law and Practice Contributed by: William Julié, Amélie Beauchemin and Camille Gosson, WJ Avocats
• a fine at least equal to, and at most twice, the amount associated with the offence or attempted offence. Incitement to breach sanctions is punished by five years’ imprisonment and a fine of EUR225,000. Legal persons risk: • dissolution; • a permanent ban, or a ban for a maximum of five years, on directly or indirectly exercising one or more professional or social activities; • placement, for a maximum of five years, under judicial supervision; • permanent closure, or closure for a maximum of five years, of one or more of the establishments of the company used to commit the offence; • permanent exclusion from public contracts or exclusion for a maximum of five years; • a ban, either permanently or for a maximum of five years, on making a public offer of financial securi - ties or on having their financial securities admitted to trading on a regulated market; • a ban, for a maximum of five years, on issuing cheques other than those enabling the drawer to withdraw funds from the drawee or those who are certified, or on using payment cards; • publication of the decision either in the written press or by any electronic means of communica - tion to the public; • a ban, for a period of up to five years, on receiving any public aid allocated by the state, local authori - ties, their establishments or groupings, as well as on any financial aid paid by a private person entrusted with a public service mission; and • confiscations. For legal persons, the maximum financial penalty is ten times the value of the product of the transaction (Article L. 542-4 of the Customs Code, in conjunction with Article 131-38 of the Criminal Code). Article L. 542-3 of the Customs Code specifies that: “When the property and assets referred to in para - graphs 1 through 3 of Article L. 542-1 cannot be seized or are not produced by the defendant, or when the Minister of the Budget so requests, the court hear -
ing the case may order the defendant to pay a sum equal to the value of such property and assets”. There are no civil penalties for violating economic sanctions laws or regulations in France. In addition to applicable criminal penalties, breaches of sanctions can give rise to administrative sanctions under Article L. 612-39 of the Monetary and Financial Code. These sanctions include: • a warning; • a reprimand; • prohibition of conducting certain transactions or other restrictions on business activities; • temporary suspension of one or more executives; • compulsory dismissal of one or more executives; • partial withdrawal of authorisation to operate; and • full withdrawal of authorisation or removal from the register of authorised entities. Furthermore, under Article L. 561-36-1 IV of the Mon - etary and Financial Code, the Autorité de contrôle pru- dentiel et de résolution (ACPR) may impose adminis - trative financial penalties of up to EUR100 million or 10% of the entity’s annual turnover, whichever amount is greater. At EU Level In April 2024, the EU adopted Directive (EU) 2024/1226, which created the European criminal offence of viola - tion of sanctions. In particular, Article 3 of the Directive provides for the following punishable behaviours: • making funds or economic resources available, directly or indirectly, to or for the benefit of a desig - nated person, entity or body in violation of a prohi - bition that constitutes an EU restrictive measure; • failing to freeze funds or economic resources belonging to, or owned, held or controlled by, a designated person, entity or body in violation of an obligation that constitutes an EU restrictive meas - ure; • enabling designated natural persons to enter into, or transit through, the territory of a member state in violation of a prohibition that constitutes an EU restrictive measure;
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