By Maya Lester KC & Michael O’Kane

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By Maya Lester KC & Michael O’Kane

EU Enforcement

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Overview

Breaches of EU sanctions are investigated and penalised by EU member states, subject to some requirements laid down by the EU. The enforcement mechanisms and penalties used by Member States are on the Sanctioning State pages and there is a table of relevant legislation and authorities below.

 

EU Whistleblower tool

The EU Commission in 2022 introduced the EU Sanctions Whistleblower Tool, a platform for anonymously reporting past, ongoing or planned sanctions violations, or attempted violations, to the European Commission.

When a report is made, the Commission will:

  1. examine the report
  2. conduct a preliminary inquiry
  3. may contact the whistleblower for clarifications
  4. share an anonymised report of the violation with the national competent authority in the relevant Member State(s) if the Commission considers that there is a basis for enforcement action.

Enforcement action is then the responsibility of Member States’ competent authorities, which may initiate further former investigations in line with their own sanctions laws.

 

EU requirements for member state sanctions enforcement

Member States must make sure penalties are ‘effective, proportionate and dissuasive’ (e.g. Article 12 of Council Regulation (EU) No 753/2011 – Afghanistan sanctions). E.g. Article 8 of the EU’s Russia Regulations – 833/2024 requires Member States to lay down rules in national legislation for penalties for infringements of the EU’s Russia sanctions.

Member States have a duty within each sanctions regulation (e.g. under Article 6 of the EU’s Russia Regulations – 833/2024) to exchange information on enforcement between each other’s competent authorities and the EU Commission.

If a Member State does not implement EU sanctions into domestic law, including provisions to enforce them, the European Commission could, under Article 258 of the Treaty on the Functioning of the European Union:

  1. Deliver a reasoned opinion on the matter (having given the Member State an opportunity to submit observations)
  2. If the Member State does not comply with the opinion, bring proceedings against the Member State before the Court of Justice of the European Union for failure to fulfil an obligation, which can result in confirmation that the state has failed to fulfil its obligations and a financial penalty.

EU Directive 2024/1126 (adopted in May 2024) aims to harmonise sanctions enforcement laws across the EU. Member States have 12 months (until 20 May 2025) to incorporate its provisions into domestic law.  The directive requires member states to include:

  • definitions for sanctions violations
  • maximum penalties for sanctions measures
  • additional enforcement obligations for Member States

 

Definitions of sanctions violations

The Directive establishes “common minimum rules concerning the definitions of offences” related to sanctions violations. Member States must ensure that, where intentional, the following conduct constitutes a criminal offence under the State’s national implementation of EU sanctions:

  • making funds available for the benefit of a designation person (DP), failing to freeze funds belonging to a DP, or enabling a DP to transit through a Member State
  • entering into transactions with third states, importing and exporting goods, and providing connected brokering services or technical assistance where this is prohibited by EU sanctions
  • providing financial and other services prohibited by EU sanctions
  • breaching or failing to fulfil conditions under authorisations (i.e. licences) granted by competent authorities
  • circumvention of sanctions, which includes concealing funds owned by a DP by using third parties to make transactions, providing misleading information to conceal that a DP is the beneficiary of certain funds, and failure by a DP to comply with reporting obligations

Maximum penalties for sanctions breaches

Member States must take necessary measures to ensure that the criminal offences for sanctions breaches are punishable by a maximum penalty of imprisonment.

For individuals:

  • a maximum term of imprisonment of at least 1, 3, or 5 years depending on the offence
  • a discretion for Member States to issue fines, withdraw licences, disqualify individuals from holding certain positions
  • where there is a public interest, all or part of the judicial decision relating to the offence committed and the penalties imposed may be published – this may include personal data in exceptional cases.

For companies: a maximum fine of not less than 1% or 5% of turnover or €8 million or €40 million depending on the offence.

Aggravating and Mitigating Circumstances

The Directive also requires Member States to take necessary measures to ensure that one or more of the following circumstances can, in accordance with national law, be regarded as an aggravating circumstance:

  • the offence was committed in the framework of a criminal organisation
  • the offender used false/forged documents
  • the offence was committed by a professional service provider in violation of professional obligations of such a provider, or by a public official when performing their duties
  • the offence generated substantial financial benefits or avoided substantial expenses
  • the offender destroyed evidence/intimidated witnesses or complainants
  • previous convictions for sanctions offences

Member States must also take the necessary measures to ensure that one or more of the following circumstances can, in accordance with national law, be regarded as a mitigating circumstance:

  • the offender provides information to the competent authorities to help identify other offenders
  • the offender provides competent authorities with information the competent authorities would not otherwise have been able to obtain

Additional Obligations

The Directive also requires Member States to:

  • take necessary measures to enable the freezing and confiscation of assets from certain sanctions criminal offences
  • take necessary measures to ensure that inciting, aiding, and abetting sanctions criminal offences is also punishable as a criminal offence and attempting to commit certain of the offences is punishable as a criminal offence
  • take necessary measures to ensure that effective and proportionate investigative tools are available and to ensure the protection of persons reporting sanctions violations
  • designate a unit or body for ensuring coordination between law enforcement authorities and authorities implementing sanctions
  • cooperate with other Member States, Europol, Eurojust, the European Public Prosecutor’s Office and the Commission and requires member states to consider sharing information with other member states where the offence is suspected to be of a cross-border nature

 

EU organisations supporting enforcement

Some EU enforcement bodies support Member States with sanctions enforcement:

  • The ‘Freeze and Seize’ Task Force (established in March 2022), helps ensure the implementation of EU Russia & Belarus sanctions. The Task Force coordinates actions by Member States to seize and, where appropriate, confiscate assets of the listed people, and is composed of representatives of the European Commission, contact points from each EU Member State, Europol, Eurojust, and other EU agencies and bodies as necessary.
  • European Union Agency for Criminal Justice Cooperation (Eurojust) – works with national authorities to tackle cross-border crimes (including sanctions violations) involving 2 or more countries.
  • Europol supports Member States in preventing and combating all forms of serious international and organised crime, cybercrime and terrorism.

 

Member States Competent Authorities

National Competent Authorities for the enforcement of EU sanctions

 

Member States enforcement legislation

Member State Criminal/Civil Offence Legislation
Austria Criminal & Civil Foreign Trade Act 2011

 
Belgium Criminal & Civil Law of 2 May 2019

 

Law of 13 May 2003
Bulgaria Criminal & Civil Bulgarian Penal Code
Croatia Criminal Law on International Restrictive Measures
Cyprus Criminal Law No 58 (I) / 2016
Czech Republic Criminal & Civil Section 410 of the Criminal Code

Law No 69/2006 Coll
Denmark Criminal Danish Penal Code, Section 110C
Estonia Criminal & Civil International Sanctions Act
Finland Criminal Act on the Enforcement of Certain Obligations of Finland as a member of the United Nations and of the European Union

Chapter 46, section 1 (11) of the Finnish Penal Code
France Criminal Article 459 of the French Customs Code

Article L2335-2 and Article L2339-11-1 of the French Defence Code
Germany Criminal & Civil Außenwirtschaftsgesetz (Foreign Trade and Payments Act)
Greece Criminal & Civil Violation of EU sanctions is regulated by specific pieces of legislation transposing such sanctions, which may impose criminal or administrative sanctions for the breach of specific rules
Hungary Criminal Act C of 2012 on the Hungarian Criminal Code 2001 CIV. Act Law on Criminal Measures Applicable to Legal Persons
Ireland Criminal & Civil Violation of EU sanctions is regulated by specific pieces of legislation transposing such sanctions, which may impose criminal or civil sanctions for the breach of specific rules
Italy Criminal & Civil Article 2 of Law-decree No 369 of 12 October 2001

Article 55-58 of Legislative Decree No 231 of 21 November 2007
Latvia Criminal Criminal Law of the Republic of Latvia
Lithuania Criminal & Civil Article 123(1) of the Criminal Code of the Republic of Lithuania

Article 515 of the Code of Administrative Law Violations of the Republic of Lithuania

Law of the Republic of Lithuania on Implementation of Economic and other International Sanctions
Luxembourg Criminal Article 58 of Section 2 ‘Penal Sanctions’ of the Law regarding export control of 27 June 2018
Malta Criminal National Interest (Enabling Powers) Act, Cap 365 of the Laws of Malta
Netherlands Criminal Wet op de economische delicten (WED, Law on Economic Offences)

Sanctions Act 1977
Poland Criminal & Civil Act of 29 November 2000 on the Trading of Goods, Technology and Services of Strategic Importance to State Security

Anti-Money Laundering and Anti-Terrorist Financing Act

Maintenance of International Peace and Security Act

Trading of Goods, Technology and Services of Strategic Importance to State Security Act
Portugal Criminal Law establishing the penalties applicable in cases of non-compliance with international sanctions regimes imposed by the EU
Romania Criminal & Civil Government Emergency Ordinance No 202 of December 2008 on the implementation of international sanctions
Slovakia Civil Act No 289/2016 Coll
Slovenia Criminal & Civil Restrictive Measures Act introduced or implemented by the Republic of Slovenia in accordance with legal acts and decisions adopted within the framework of international organisations

Criminal Code of Slovenia
Spain Civil Act 12/03 of 21 May for the prevention and blocking of terrorism financing

Criminal Code
Sweden Criminal Act on Certain International Sanctions (1996:95)

 

EU Member State enforcement actions in 2025

Further enforcement actions by European countries are reported on the European Sanctions Enforcement blog.

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