DENMARK Law and Practice Contributed by: Anders Amstrup Fournais and Sarah Bisgaard Møller, Hafnia Law Firm LLP
concerned will not be used by or be for the benefit of that listed person or entity. The latest guidance on asset freezes and designations can be found in the Council Publication titled “EU Best Practices for the effective implementation of restric - tive measures”, dated 3 July 2024. 7.3 Circumvention 7.3.1 Prohibiting Provisions The EU Council Regulations that set out the EU’s sanctions contain the following provision: “It shall be prohibited to participate, knowingly and intentionally, in activities the object or effect of which is to circum - vent”. This provision has been addressed in guidelines such as the European Commission’s FAQs; see Chapter A.2 on “Circumvention and due diligence”.
Several other notes or guidelines have been issued, such as the European Commission’s “Guidance for EU operators: Implementing enhanced due diligence to shield against Russia sanctions circumvention”. In practice, businesses will need to understand the rules in order to be able to make a general risk assess - ment. Once this is done, businesses can implement due diligence procedures that take into consideration any signs of sanctions circumvention. 7.3.2 Criminal Penalties Circumventing sanctions is a breach of sanctions, and any breach of EU sanctions is a criminal offence under Danish law that can lead to fines, imprisonment and confiscation.
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