FRANCE Law and Practice Contributed by: William Julié, Amélie Beauchemin and Camille Gosson, WJ Avocats
• entering into or continuing transactions with a third state, bodies of a third state, or entities or bodies directly or indirectly owned or controlled by a third state or by bodies of a third state, including the award or continued execution of public or conces - sion contracts where the prohibition or restric - tion of that conduct constitutes an EU restrictive measure; • trading, importing, exporting, selling, purchas - ing, transferring, transiting or transporting goods, as well as providing brokering services, techni - cal assistance or other services relating to those goods, where the prohibition or restriction of that conduct constitutes an EU restrictive measure, including where committed with serious negli - gence, and at least where that conduct relates to items included in the Common Military List of the European Union or to dual-use items listed in Annexes I and IV to Regulation (EU) 2021/821; • providing financial services or performing financial activities, where the prohibition or restriction of that conduct constitutes an EU restrictive measure; • providing services other than those referred to in the preceding bullet point, where the prohibition or restriction of that conduct constitutes an EU restrictive measure; • circumventing an EU restrictive measure by: (a) using, transferring to a third party, or otherwise disposing of funds or economic resources directly or indirectly owned, held or controlled by a designated person, entity or body, and which are to be frozen pursuant to an EU restrictive measure, in order to conceal those funds or economic resources; (b) providing false or misleading information to conceal the fact that a designated person, en - tity or body is the ultimate owner or beneficiary of funds or economic resources that are to be frozen pursuant to an EU restrictive measure; (c) failing by a designated natural person, or by a representative of a designated entity or body, to comply with an obligation that constitutes an EU restrictive measure to report to the competent administrative authorities funds or economic resources within the jurisdiction of a member state belonging to, owned, held or controlled by them; or (d) failing to comply with an obligation that consti -
tutes an EU restrictive measure to provide the competent administrative authorities with infor - mation on frozen funds or economic resources, or information held about funds or economic resources within the territory of member states, belonging to, owned, held or controlled by des - ignated persons, entities or bodies that have not been frozen, and where such information was obtained in the performance of a profes - sional duty; and (e) breaching or failing to fulfil conditions attached to authorisations granted by competent author - ities to conduct activities that, in the absence of such an authorisation, amount to a violation of a prohibition or restriction that constitutes an EU restrictive measure. Concerning penalties faced by natural persons, Article 5 of the Directive leaves some leeway to EU member states but provides several indications concerning minimum fines and terms of imprisonment (from one year to five years or a maximum term of three years, depending on the offence committed). It also provides for accessory criminal or non-criminal penalties or measures, which may include: • fines that are proportionate to the gravity of the conduct and to the individual, financial and other circumstances of the natural person concerned; • withdrawal of permits and authorisations to pursue activities that resulted in the criminal offence; • disqualification from holding, by a legal person, a leading position of the same type used for commit - ting the criminal offence; • temporary bans on running for public office; and • publication of all or part of the judicial decision. Concerning legal persons, Article 7 of the Directive provides for the following potential penalties: • exclusion from entitlement to public benefits or aid; • exclusion from access to public funding, including tender procedures, grants and concessions; • disqualification from the practice of business activities;
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