EU Law and Practice Contributed by: Edward Borovikov, Laurens Engelen, Aurore Ancion and Semen Medvedkov, Dentons
working groups before adoption. The CFSP Coun - cil decision and the Council regulation are adopted simultaneously to ensure they are effective at the same time. The primary responsibility for implement - ing and enforcing EU sanctions lies with the compe - tent EU member state authorities, while the European 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 EU. Subsequently, in 2024, the Council adopted rules to ensure that the violation of restrictive measures is duly criminalised. Consequent - ly, certain actions are considered criminal offences in all member states, for example helping to bypass a travel ban, trading in sanctioned goods or perform - ing prohibited financial activities. Inciting, aiding 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 response has been provided in this jurisdiction. 2.2.4 Criminal Enforcement Action No response has been provided in 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 - gating potential exposure to sanctioned entities or individuals. Training employees on sanctions compliance is also vital, with a focus on regular and targeted training for staff in high-risk areas. Creating a culture of compli - ance within the organisation encourages staff to be vigilant and proactive in identifying and addressing potential issues. In instances where a breach occurs, voluntary self- disclosure to the relevant authorities can be a mitigat - ing factor. Demonstrating a commitment to rectifying the issue and co-operating fully with any investiga - tions can lead to more lenient treatment. 2.2.6 “Strict Liability” The sanctions regime within the EU is characterised by a nuanced approach to liability, which does not
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