Overview
Under the Sanctions Act 1977, the Netherlands implements national and international sanctions. Generally, these follow sanctions imposed by the UN and EU. EU sanctions have direct effect in the Netherlands. The Minister of Foreign Affairs is responsible for implementation and enforcement of sanctions measures. & co-operates with other relevant ministers when appropriate.
The Netherlands also has The National Terrorism List which has designations and asset freezes implemented by autonomous sanctions legislation for those involved in terrorist activities.
National Competent Authorities
The Ministry of Foreign Affairs is responsible for sanctions in the Netherlands and the national terrorist asset freeze list. The Central Import and Export Service in the Ministry of Finance issues licences in consultation with the Ministry of Foreign Affairs.
The Precursors, Strategic Goods and Sanctions Law team, part of Dutch Customs, supervises compliance with sanctions. Sanctions compliance duties imposed on financial institutions are enforced by the Dutch Central Bank and the Dutch Authority for Financial Markets.
The Human Environment and Transport Inspectorate under the Ministry of Infrastructure and Water Management oversees compliance with transport sanctions. It is authorised to audit aircraft and vessels.
Under the Supervisory Officials Order Sanctions Act 1977, the following are also responsible for overseeing compliance:
- The Fiscal Information and Investigation Service, which is the body responsible for criminal investigations (alongside Dutch Customs),
- The Netherlands Food and Consumer Product Safety Authority,
- The Cultural Heritage Inspectorate of the Ministry of Education, Culture and Science, and
- the commanders of naval vessels.
Legislation
Sanctiewet 1977 (Sanctions Act 1977)
Regeling Geavanceerde Productieapparatuur voor Halfgeleiders (Regulation of the Minister for Foreign Trade and Development Cooperation of 23 June 2023, introducing a license obligation for the export of advanced production equipment)
Dutch Economic Offences Act provides for the penalties for violations of the Sanctions Act.
Sanctions Lists
Guidance
Licensing
The Central Import and Export Office (CDIU) is the agency that grants licences.
The following licences are available to apply for:
Licence for the export or transit of strategic goods or goods subject to sanctions
Authorisation for export or re-export sanctions goods to Russia
Authorisation for export or re-export sanctions goods to Belarus
Licence for the import of sanctioned goods from Russia
Licence for the import of sanctioned goods from Belarus
Licence for the export or transit of strategic goods or goods subject to sanctions
Enforcement
Sanctions violations are a criminal offence under the Dutch Economic Offences Act.
Where there is intention to breach sanctions, the breach constitutes a felony in Dutch law. Those convicted of a felony can have imposed:
- a prison sentence of up to 6 years;
- a community service order; or
- a fine of up to €103k.
Where the breach was not intentional, it constitutes a misdemeanour. The possible penalties for a misdemeanour are:
- a prison sentence of up to 1 year;
- community service; or
- a fine of up to €25,750.
Additional measures may also be taken, including:
- deprivation of certain rights (holding offices/certain offices, serving in the army, the right to elect members of general representative bodies and be elected to such bodies, being a counsellor/judicial administrator, the exercise of certain professions);
- complete or partial closure of a business;
- confiscation of certain objects;
- confiscation of objects belonging to a business;
- denial of certain benefits in connection with the convicted person’s business for up to 2 years; and
- publication of the judicial decision.
Reporting
Individuals and organisations on the Russia, Belarus, Haiti and Iran sanctions lists are required to report any assets and property they have in EU countries within six weeks of being added to the list.
Individuals and organisations must use this form to declare their assets and property. This form and all other relevant information should be sent by email to one or more of the following addresses, depending on the nature of the assets/property:
- Financial assets: [email protected]
- Real estate, including commercial properties: [email protected]
- Non-listed enterprises: [email protected]
- Art and cultural objects: [email protected]
- Vessels and aircraft: [email protected].
Reporting requirement for individuals and organisations on the sanctions list
Export controls
Legislation
Legislation, treaties and international agreements on the export of strategic goods
Strategic Services Implementation Regulations
Guidance
Export controls on strategic goods and services
Control policy for strategic goods and services
Reporting practices with regard to military and dual-use goods
De-listing
Persons added to the National Terrorism Sanctions List can lodge an administrative appeal against the decision to list them.
Judgments
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ECLI:NL:RBAMS:2024:8567 Dutch company fined €120k for exporting machinery to Crimea
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ECLI:NL:RBROT:2024:11674 (Dutch conviction for sending aviation parts to Russia via 3rd countries)
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ECLI:NL:RBAMS:2024:8568 employee of Dutch company acquitted for violations of Sanctions Act
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ECLI:NL:RBROT:2024:11106 (Dutch conviction for exports of sanctioned computer goods and software that breach EU Russia sanctions)
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ECLI:NL:RBROT:2024:11107 (Dutch confiscation order for exports of sanctioned computer goods and software that breach EU Russia sanctions)
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ECLI:NL:RBROT:2024:10320 (Dutch fine for failure to conduct an audit required by sanctions law)
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ECLI:NL:RBROT:2024:9673 (criminal conviction for breaches of Russia sanctions)
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ECLI: NL: GHDHA: 2024:1568
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ECLI:NL:HR:2024:642 (Re DP shareholder voting rights)
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ECLI:NL:RBGEL:2024:2151 (winding up of entity convicted of violating sanctions)
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ECLI:NL:RBROT:2023:10072
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Paraseven Ltd ECLI:NL:GHAMS:2023:1058
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Fortenova Group STAK Stichting en Open Pass Limited v SBK Art Limited Liability Company
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Paraseven Limited
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Preliminary relief (Netherlands) no. KG ZA 22-388
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Payesh Gostaran Pishro Ltd. v Pipe Survey International C.V. en P & L Pipe Survey B. V.
