NETHERLANDS Law and Practice Contributed by: Sebastiaan Bennink, Daniel Webb, Charlotte Loomans and Siqi Zhao, Bennink Dunin-Wasowicz
compliance with sanctions in relation to financial transactions; and • the Dutch Public Prosecution Service ( Open- baar Ministerie , or OM) is responsible for criminal enforcement of sanctions, and is assisted in its investigations, where necessary, by the POSS and the Fiscal Information and Investigation Service ( Fiscale inlichtingen - en opsporingsdienst , or FIOD). Other authorities with competence in specific areas (as listed in 2.1 Primary Regulators ) are responsible for the enforcement of sanctions within their respec - tive domains. In the Netherlands, interministerial col - laboration is essential for the implementation and enforcement of sanctions. It is important to note that the bill on the Internation - al Sanctions Act is proposing to establish a central reporting point for sanctions notifications. 2.2.2 Breaching Sanctions A National Sanctions Regulation ( Sanctieregeling ), created under the powers provided for in the Sanc - tions Act 1977 ( Sanctiewet 1977), is always enacted in relation to sanctions regimes, and prohibits violations of sanctions regulations. A violation of the relevant National Sanctions Regulation constitutes a violation of the Sanctions Act 1977, which in turn is considered a crime under the Economic Offences Act ( Wet op de economische delicten ). Under the Economic Offences Act, breaches of sanc - tions may give rise to the following penalties. • For individuals: up to six years’ imprison - ment, community service or a maximum fine of EUR110,000. If the value involved in the offence exceeds one quarter of the maximum fine, a maxi - mum fine of EUR1.1 million may apply. • For legal entities: a maximum fine of EUR 1.1 mil - lion or, if the maximum fine is considered insuffi - cient, a fine of up to 10% of turnover in the finan - cial year preceding the judgment or settlement. Additional measures may also be imposed, including:
• deprivation of certain rights, including exclusion from public procurement; • complete or partial closure of the business; • confiscation of unlawfully obtained benefits; • forfeiture of objects; and • public disclosure of the sentence. 2.2.3 Civil Enforcement Action At present, the Netherlands does not provide for a civil enforcement mechanism in cases of sanctions violations. Enforcement is almost exclusively pursued through criminal law. However, the bill on the International Sanction Act, proposed by the Dutch government to reform and modernise the Dutch sanctions system, suggests more possibilities for administrative enforcement in addition to criminal law and improved foundations for information exchange. 2.2.4 Criminal Enforcement Action Key criminal enforcement actions in the Netherlands in the last three years include the following. • 17 October 2024 Rotterdam Case (ECLI:NL:RBROT:2024:11106) – the District Court of Rotterdam convicted a Russian national resid - ing in the Netherlands for supplying and exporting dual-use goods and technology, restricted luxury goods and goods capable of enhancing Russia’s industrial capacity to companies in Russia. The court imposed a custodial sentence of 450 days, 344 days of which were suspended, with credit for time spent in pre-trial detention. The sentence also included a probation period of two years and a community service order of 240 hours or, alterna - tively, 120 days’ imprisonment. • 22 November 2024 Rotterdam Case (ECLI:NL:RBROT:2024:11674) – the District Court of Rotterdam convicted a natural person for sup - plying aviation components to a company in Rus - sia through circumvention routes through Turkey, Serbia, the United Arab Emirates and Kyrgyzstan. The court imposed a prison sentence of 300 days, 195 days of which were conditional, with credit for time spent in pre-trial detention. The sentence also included a probation period of two years and
211 CHAMBERS.COM
Powered by FlippingBook