European sanctions: European definition of criminal offences

On April 12, 2024, the European Council adopted the directive, which sets out minimum rules for EU-wide prosecution of member states for violations or circumvention of EU sanctions. The directive was passed in the first reading by the European Parliament on March 12.

The bill was published in the Official Journal of the European Union on 29 April and May 19Its provisions still need to be implemented by member states no later than May 20, 2025.

The following deliberate violations of Union restrictive measures or national regulations will constitute a criminal offence: directly or indirectly providing funds or economic resources to persons, entities or designated institutions that violate the prohibitions that constitute Union restrictive measures… etc. In addition, Gross negligence If the violation of restrictions is permitted, it must constitute a criminal offence.

Member States must ensure that these criminal offences are Effective, proportional and Dissuasive Criminal penalties.

In addition, the Sanctions Directive also applies to natural persons. For certain crimes, natural persons may be sentenced to a maximum Five years in prison and a €100,000 fine.

Member States should ensure that Legal person According to the directive, people in leadership positions within relevant organizations may be held criminally liable if they commit crimes for profit. Depending on the type of violation, the following penalties may be imposed: Up to 5% of the legal entity’s total worldwide turnoverNon-criminal sanctions may also be imposed, such as the revocation of entitlement to public benefits or assistance, disqualification from engaging in commercial activities, and prohibition from receiving public funds (including tenders, subsidies and concessions).

Implementation must be monitored!

These provisions are intended to replace the restrictive measures currently applicable in France for the same conduct in respect of goods (Article 459 of the French Customs Code: up to five years’ imprisonment, confiscation of the fraudulent goods and means of transport, and a fine of one to two times the value of the fraudulent goods).

Inevitably, two issues arise: proof of the intention to circumvent, on the one hand, and the treatment of facts relating to the service, on the other.

Therefore, this transposition must be followed very carefully in all cases.

We will continue to help any company that wishes to defend its rights and interests with respect to sanctions.

Instruction Links: Directive (EU) 2024/1226 of the European Parliament and of the Council of 24 April 2024 on the definition of criminal offences and penalties for infringements of Union restrictive measures and amending Directive (EU) 2018/1673

For more information, please contact our team: dscustomsdouane@dsavocats.com.