Proposal for a Council Regulation on specific restrictive measures directed against certain persons and entities with a view to combating international terrorism
Date: 2001-10-02
Institutions: European Commission
Subjects: account, administrative sanction, natural person, terrorism

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Official Journal of the European Communities

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Proposal for a Council Regulation on specific restrictive measures directed against certain persons
and entities with a view to combating international terrorism

(2002/C 25 E/05)

COM(2001) 569 final (cid:151) 2001/0228(CNS)

(Submitted by the Commission on 4 October 2001)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 308 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas:

(1) The European Council at its extraordinary meeting on
21 September 2001 declared that
terrorism is a real
challenge to the world and to Europe and that the fight
against
the
European Union.

terrorism will be a priority objective of

(2) The European Council declared that combating the
the fight
terrorism is a decisive aspect of
funding of
against terrorism and called upon the Council to take
the necessary measures to combat any form of financing
for terrorist activities.

(3) The European Council asked the Council

to evaluate
systematically the European Union’s relations with third
countries in the light of support which those countries
might give to terrorism.

(4) The measures provided for in this Regulation, when taken
at the level of the European Union, will ensure a rapid
and more coherent application, and optimal effectiveness
of these measures throughout the Community, while at
the same time preventing a distortion of competition or
negative effects on the functioning of
the common
market.

(5) For

the
the purpose of preventing circumvention of
provisions of this Regulation, restrictions should also be
imposed on intra-Community payments and movements
of capital.

(6) The measures provided for in this Regulation should not
lead to disproportionate damage to the interests of the
Community and,
therefore, provision should be made
for decisions on exceptions to be taken in accordance
to the
with procedures which minimise
interests of the Community.

risks

the

(7) A procedure should also be provided for amending the

annexes to this Regulation.

(8) Since the measures necessary for the implementation of
this Regulation are management measures within the
meaning of Article 2 of Council Decision 1999/468/EC
of 28 June 1999 laying down the procedures for the

implementing powers

conferred on the
exercise of
Commission (1), they should be adopted by use of the
management procedure provided for in Article 4 of that
Decision.

(9) Circumvention of this Regulation should be countered by
information, and where appro-
additional

remedial measures,

including

an adequate system of
priate,
Community legislation.

(10) The competent authorities of the Member States should,
where necessary, be empowered to ensure compliance
with this Regulation.

(11) The Member States should lay down rules on sanctions
applicable to infringements of the provisions of this Regu-
lation and ensure that
they are implemented. Those
penalties must be effective, proportionate and dissuasive.
It is desirable that those sanctions can be imposed as from
the date of entry into force of this Regulation.

(12) The Commission and the Member States should inform
each other of the measures taken under this Regulation
in
and of other relevant
connection with this Regulation.

information at

their disposal

(13) It is necessary for this Regulation to enter into force as a

matter of urgency.

(14) The Treaty does not provide, for the adoption of this
Regulation, powers other than those under Article 308,

HAS ADOPTED THIS REGULATION:

Article 1

For the purpose of this Regulation, the following definitions
shall apply:

1.

and

traded

privately

(cid:145)Funds(cid:146) means financial assets and economic benefits of any
kind, including, but not necessarily limited to, cash, cheques,
claims on money, drafts, money orders and other payment
instruments; deposits with financial
institutions or other
entities, balances on accounts, debts and debt obligations;
publicly
debt
instruments, including stocks and shares, certificates repre-
senting securities, bonds, notes, warrants, debentures,
derivatives contracts;
interest, dividends or other income
on or value accruing from or generated by assets; credit,
right of set-off, guarantees, performance bonds or other
financial commitments;
lading,
bills of sale; documents evidencing an interest in funds or
financial resources, and any other instrument of export-
financing.

letters of credit, bills of

securities

and

(1) OJ L 184, 17.7.1999, p. 23.

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2.

(cid:145)Freezing of funds(cid:146) means preventing any move, transfer,
alteration, use of or dealing with funds in any way that
would result
in any change in their volume, amount,
location, ownership, possession, character, destination or
the funds,
other change that would enable the use of
including portfolio management.

Article 2

1.

Except as permitted under Articles 7 and 8:

(a) all funds held by a natural or legal person, entity or body

listed in Annex I shall be frozen;

(b) no funds shall be made available, directly or indirectly, to
or for the benefit of a natural or legal person, entity or
body listed in Annex I.

The Council, acting by qualified majority on a proposal

2.
from the Commission, shall adopt amendments to Annex I.

institution or entity shall be deemed not to be
undertaking,
acting on behalf or for the benefit of a natural or legal person,
entity or body listed in Annex I.

Article 7

Article 2 shall not apply to:

1. payments for essential human needs for be fulfilled within

the Community;

2. addition to frozen accounts of

interest due on those

accounts;

3. payments of funds due under contracts, agreements or obli-
gations which were concluded or arose prior to the entry
into force of this Regulation provided that those payments
are made into a frozen account within the Community.

Article 8

Article 3

It shall be prohibited to engage in or to continue the provision
of financial services to or for the benefit of a natural or legal
person, entity or body listed in Annex I.

Specific or general authorisations to unfreeze funds or to
1.
make funds available with a view to the protection of the
interests of
the Community may be granted in accordance
with the procedure referred to in Article 9(2).

Article 4

Annex II may be amended in accordance with the same
procedure.

1.
The participation, knowingly and intentionally, in related
activities, the object or effect of which is, directly or indirectly,
to circumvent Articles 2 and 3 shall be prohibited.

2.
Any information that the provisions of this Regulation
are being, or have been, circumvented shall be notified to the
competent authorities of the Member States listed in Annex II
and/or to the Commission.

2.
Any request by a legal or natural person for an author-
isation referred to in paragraph 1 shall be made to the
Commission directly or through the appropriate competent
authorities of the Member States listed in Annex II.

Article 9

Article 5

The Commission shall be assisted by the committee

1.
instituted by Regulation (EC) No 2271/96.

Without prejudice to the Community rules concerning confi-
dentiality and to Article 284 of
the Treaty, the competent
authorities of
the Member States shall have the power to
require banks, other financial institutions, insurance companies,
and other bodies, entities and persons to provide all relevant
information necessary for ensuring compliance with this Regu-
lation.

reference

2. Where
the
management procedure laid down in Articles 4 and 7 of
Decision 1999/468/EC shall apply.

to this paragraph,

is made

The period laid down in Article 4(3) of Decision 1999/468/EC
shall be 10 working days.

Article 6

Article 10

In cases where there exists a reasonable expectation that a
person, company, undertaking,
institution or entity is acting
on behalf or for the benefit of a natural or legal person,
entity or body listed in Annex I, but does not appear on
list, any natural or legal person shall, before entering
that
into activities otherwise prohibited by this Regulation, obtain
written confirmation from the relevant competent authorities
of the Member States listed in Annex II that such a person,
company, undertaking,
institution or entity is not acting on
behalf or for the benefit of a natural or legal person, entity
or body listed in Annex I.

If
the competent authorities do not provide such written
conformation within 10 working days, the person, company,

The committee referred to in Article 9 may examine any
question concerning the
this Regulation
referred to it by the Chairman either on his own initiative or
at the request of a Member State.

application of

Article 11

The Commission and the Member States shall immediately and
fully inform each other of the measures taken under this Regu-
lation and supply each other with the relevant information at
their disposal
in connection with this Regulation, notably
information received in accordance with Articles 4, 5 and 6,
and in respect of violation and enforcement problems or
judgments handed down by national courts.

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Article 12

(cid:151) on board any aircraft or any vessel under the jurisdiction of

Each Member State shall determine the sanctions
to be
imposed where the provisions of the Regulation are infringed.
Such sanctions shall be effective, proportionate and dissuasive.

Pending the adoption, where necessary, of any legislation to
this end, the sanctions to be imposed where the provisions
of this Regulation are infringed shall be those determined by
the Member States in accordance with Article 13 of Regulation
(EC)
(EC) No
(EC)
No
No 1081/2000 (3), whichever may be more severe.

467/2001 (1), Article
or Article

of Regulation
of Regulation

2488/2000 (2)

8
7

Article 13

This Regulation shall apply:

a Member State,

(cid:151) to any person elsewhere who is a national of a Member

State,

(cid:151) to any legal person, entity or body which is incorporated or

constituted under the law of a Member State,

(cid:151) to any legal person, entity or body doing business within

the Community.

Article 14

This Regulation shall enter into force on the day of its publi-
cation in the Official Journal of the European Communities.

(cid:151) within the territory of

the Community including its

airspace,

This Regulation shall be binding in its entirety and directly
applicable in all Member States.

(1) OJ L 67, 9.3.2001, p. 1.
(2) OJ L 287, 14.11.2000, p. 19.
(3) OJ L 122, 24.5.2000, p. 29.

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LIST OF NATURAL OR LEGAL PERSONS, ENTITIES AND BODIES REFERRED TO IN ARTICLE 2

ANNEX I

1. Al Qaida/Islamic Army

2. Abu Sayyaf Group

3. Armed Islamic Group (GIA)

4. Harakat ul-Mujahidin (HUM)

5. Al-Jihad (Egyptian Islamic Jihad)

6. Islamic Movement of Uzbekistan (IMU)

7. Asbat al-Ansar

8. Salafist group for Call and Combat (GSPC)

9. Libyan Islamic Fighting Group

10. Al-Itihaad al-Islamiya (AIAI)

11. Islamic Army of Aden

12. Usama Bin laden

13. Muhammad Atif (a.k.a. Subhi Abu Sitta, Abu Hafs Al Masri)

14. Sayf al-Adl

15. Shaykh Sai’id (a.k.a. Mustafa Muhammad Ahmad)

16. Abu Hafs the Mauritanian (aka, Mahfouz Ould al-Walid, Khalid Al-Shanqiti)

17. Ibn Al-Shaykh al-Libi

18. Abu Zubaydah (a.k.a. Zayn al-Abidin Muhammad Hussayn, Tariq)

19. Abd al-Hadi al-Iraqi (a.k.a. Abu Abdallah)

20. Ayman al-Zawahiri

21. Thirwat Salah Shihata

22. Tariq Anwar al-Sayyid Ahmad (a.k.a. Fathi, Amr al-Fatih)

23. Muhammad Salah (a.k.a. Nasr Fahmi Nasr Hasanayn)

24. Makhtab Al-Khidamat/Al Kifah

25. Wafa Humanitarian Organization

26. Al Rashid Trust

27. Mamoun Darkazanli Import-Export Company

LIST OF COMPETENT AUTHORITIES REFERRED TO IN ARTICLES 4, 6 AND 8

ANNEX II