Council Regulation (EC) No 2580/2001 of 27 December 2001 on specific restrictive measures directed against certain persons and entities with a view to combating terrorism
Date: 2001-12-27
Institutions: Council of the European Union
Subjects: EU financial instrument, administrative sanction, economic sanctions, financial institution, international sanctions, natural person, terrorism

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COUNCIL REGULATION (EC) No 2580/2001

of 27 December 2001

on specific restrictive measures directed against certain persons and entities with a view to
combating terrorism

THE COUNCIL OF THE EUROPEAN UNION,

procedures regarding terrorist organisations in the Euro-
pean Union and third countries.

Having regard to the Treaty establishing the European
Community, and in particular Articles 60, 301 and 308
thereof,

Having regard to Common Position 2001/931/CFSP on the
terrorism (1),
application of
specific measures
adopted by the Council on 27 December 2001,

to combat

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (2),

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

At its extraordinary meeting on 21 September 2001, the
European Council declared that terrorism is a real chal-
lenge to the world and to Europe and that the fight
against terrorism will be a priority objective of the Euro-
pean Union.

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

In its Resolution 1373(2001),
the United Nations
Security Council decided on 28 September 2001 that all
States should implement a freezing of funds and other
financial assets or economic resources as against persons
who commit, or attempt to commit, terrorist acts or
who participate in or facilitate the commission of such
acts.

In addition, the Security Council decided that measures
should be taken to prohibit funds and other financial
assets or economic resources from being made available
for the benefit of such persons, and to prohibit financial
or other related services from being rendered for the
benefit of such persons.

Action by the Community is necessary in order to
implement the CFSP aspects of Common Position 2001/
931/CFSP.

This Regulation is a measure needed at Community level
and judicial
and complementary to administrative

(1) See page 93 of this Official Journal.
(2) Opinion delivered on 13 December 2001 (not yet published in the

Official Journal).

(7)

Community territory is deemed to encompass, for the
purposes of this Regulation, all the territories of the
Member States to which the Treaty is applicable, under
the conditions laid down in that Treaty.

(8) With a view to protecting the

interests of
Community, certain exceptions may be granted.

the

(9)

(10)

As regards the procedure for establishing and amending
the list referred to in Article 2(3) of this Regulation, the
Council should exercise the corresponding implementing
powers itself in view of the specific means available to
its members for that purpose.

Circumvention of this Regulation should be prevented
by an adequate system of information and, where appro-
priate,
additional
Community legislation.

remedial measures,

including

(11)

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

(12) Member States should lay down rules on sanctions
applicable to infringements of the provisions of this
Regulation and ensure that they are implemented. Those
sanctions must be effective, proportionate and dissua-
sive.

(13)

(14)

(15)

The Commission and the Member States should inform
each other of the measures taken under this Regulation
and of other relevant information at their disposal in
connection with this Regulation.

The list referred to in Article 2(3) of this Regulation may
include persons and entities linked or related to third
countries as well as those who otherwise are the focus of
the CFSP aspects of Common Position 2001/931/CFSP.
For
in this Regulation
the Treaty does not provide
concerning the latter,
powers other than those under Article 308.

the adoption of provisions

The European Community has already implemented
UNSCR 1267(1999) and 1333(2000) by adopting Regu-
lation (EC) No 467/2001 (3) freezing the assets of certain
persons and groups and therefore those persons and
groups are not covered by this Regulation,

(3) OJ L 67, 9.3.2001, p. 1.

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HAS ADOPTED THIS REGULATION:

Article 1

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

1.

2.

‘Funds, other
financial assets and economic resources’
means assets of every kind, whether tangible or intangible,
movable or immovable, however acquired, and legal docu-
ments or instruments in any form, including electronic or
in, such assets,
digital, evidencing title to, or
including, but not
travellers'
cheques, bank cheques, money orders, shares, securities,
bonds, drafts and letters of credit.

limited to, bank credits,

interest

funds, other financial assets and economic
‘Freezing of
resources’ means the prevention of any move,
transfer,
alteration, use of or dealing with funds in any way that
would result in any change in their volume, amount, loca-
tion, ownership, possession, character, destination or other
change that would enable the funds to be used, including
portfolio management.

3.

‘Financial services’ means any service of a financial nature,
including all insurance and insurance-related services, and
all banking and other financial services (excluding insur-
ance) as follows:

Insurance and insurance-related services

(i) Direct insurance (including co-insurance):

(A) life assurance;

(B) non-life;

(ii) Reinsurance and retrocession;

(iii) Insurance
agency;

intermediation,

such as brokerage

and

(iv) Services auxiliary to insurance, such as consultancy,
actuarial, risk assessment and claim settlement services.

Banking and other financial services (excluding insurance)

(v) Acceptance of deposits and other repayable funds;

(vi) Lending of all types, including consumer credit, mort-
factoring and financing of commercial

gage credit,
transaction;

(vii) Financial

leasing;

(viii) All payment

and money
including credit, charge and debit cards,
cheques and bankers' drafts;

transmission services,
travellers'

(A) money market

instruments (including cheques,

bills, certificates of deposits);

(B) foreign exchange;

(C) derivative products including, but not limited to,

futures and options;

(D) exchange

rate and interest

instruments,
including products such as swaps and forward
rate agreements;

rate

(E) transferable securities;

(F) other negotiable instruments and financial assets,

including bullion;

securities,
(xi) Participation in issues of all kinds of
including underwriting and placement
agent
as
(whether publicly or privately) and provision of
services related to such issues;

(xii) Money brokering;

(xiii) Asset management, such as cash or portfolio manage-
ment, all forms of collective investment management,
pension fund management, custodial, depository and
trust services;

(xiv) Settlement and clearing services for financial assets,
including securities, derivative products, and other
negotiable instruments;

(xv) Provision and transfer of financial

information, and
financial data processing and related software by
suppliers of other financial services;

(xvi) Advisory, intermediation and other auxiliary financial
services on all the activities listed in subparagraphs (v)
to (xv), including credit reference and analysis, invest-
ment and portfolio research and advice, advice on
acquisitions
restructuring and
strategy.

and on corporate

4. For the purposes of

the definition of
‘terrorist act’ shall be the one contained in Article 1(3) of
Common Position 2001/931/CFSP.

this Regulation,

5.

‘Owning a legal person, group or entity’ means being in
possession of 50 % or more of the proprietary rights of a
legal person, group or entity, or having a majority interest
therein.

6.

‘Controlling a legal person, group or entity’ means any of
the following:

(a) having the right to appoint or remove a majority of the
members of the administrative, management or super-
visory body of such legal person, group or entity;

(ix) Guarantees and commitments;

(x) Trading for own account or for account of customers,
in an over-the-counter

whether on an exchange,
market or otherwise, the following:

(b) having appointed solely as a result of the exercise of
one's voting rights a majority of the members of the
administrative, management or supervisory bodies of a
legal person, group or entity who have held office
during the present and previous financial year;

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(c) controlling alone, pursuant to an agreement with other
shareholders in or members of a legal person, group or
entity, a majority of shareholders' or members' voting
rights in that legal person, group or entity;

(d) having the right to exercise a dominant influence over a
legal person, group or entity, pursuant to an agreement
entered into with that legal person, group or entity, or
to a provision in its Memorandum or Articles of Asso-
legal person,
ciation, where the law governing that
group or entity permits its being subject to such agree-
ment or provision;

(e) having the power to exercise the right to exercise a
dominant influence referred to in point (d), without
being the holder of that right;

(f) having the right to use all or part of the assets of a legal

person, group or entity;

(g) managing the business of a legal person, group or entity
on a unified basis, while publishing consolidated
accounts;

(h) sharing jointly and severally the financial liabilities of a
legal person, group or entity, or guaranteeing them.

Article 2

1.

Except as permitted under Articles 5 and 6:

(a) all funds, other financial assets and economic resources
belonging to, or owned or held by, a natural or legal
person, group or entity included in the list referred to in
paragraph 3 shall be frozen;

(b) no funds, other financial assets and economic resources
shall be made available, directly or indirectly, to, or for the
benefit of, a natural or legal person, group or entity
included in the list referred to in paragraph 3.

2.
Except as permitted under Articles 5 and 6, it shall be
prohibited to provide financial services to, or for the benefit of,
a natural or legal person, group or entity included in the list
referred to in paragraph 3.

The Council, acting by unanimity, shall establish, review
3.
and amend the list of persons, groups and entities to which this
Regulation applies,
in accordance with the provisions laid
down in Article 1(4), (5) and (6) of Common Position 2001/
931/CFSP; such list shall consist of:

(i) natural persons committing, or attempting to commit,
participating in or facilitating the commission of any act of
terrorism;

(ii) legal persons, groups or entities committing, or attempting
to commit, participating in or facilitating the commission
of any act of terrorism;

(iii) legal persons, groups or entities owned or controlled by
one or more natural or legal persons, groups or entities
referred to in points (i) and (ii); or

(iv) natural legal persons, groups or entities acting on behalf of
or at the direction of one or more natural or legal persons,
groups or entities referred to in points (i) and (ii).

Article 3

1.
The participation, knowingly and intentionally, in activi-
ties, the object or effect of which is, directly or indirectly, to
circumvent Article 2 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 the Annex
and to the Commission.

Article 4

1. Without prejudice to the applicable rules concerning
reporting, confidentiality and professional secrecy and to the
provisions of Article 284 of the Treaty, banks, other financial
insurance companies, and other bodies and
institutions,
persons shall:

— provide immediately any information which would facili-
tate compliance with this Regulation, such as accounts and
amounts frozen in accordance with Article 2 and trans-
actions executed pursuant to Articles 5 and 6:

— to the competent authorities of the Member States listed
in the Annex where they are resident or located, and

— through these competent authorities, to the Commis-

sion,

— cooperate with the competent authorities listed in the

Annex in any verification of this information.

2.
Any information provided or received in accordance with
this Article shall be used only for the purposes for which it was
provided or received.

3.
Any information directly received by the Commission
shall be made available to the competent authorities of the
Member States concerned and to the Council.

Article 5

1.
Article 2(1)(b) shall not apply to the addition to frozen
accounts of interest due on those accounts. Such interest shall
also be frozen.

2.
The competent authorities of the Member States listed in
the Annex may grant specific authorisations, under such condi-
tions as they deem appropriate,
the
financing of acts of terrorism, for

in order to prevent

1. the use of frozen funds for essential human needs of a
natural person included in the list referred to in Article 2(3)
or a member of his family, including in particular payments
for foodstuffs, medicines,
the rent or mortgage for the
family residence and fees and charges concerning medical
treatment of members of that family, to be fulfilled within
the Community;

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2. payments from frozen accounts for the following purposes:

(a) payment of taxes, compulsory insurance premiums and
fees for public utility services such as gas, water, elec-
tricity and telecommunications
to be paid in the
Community; and

(b) payment of charges due to a financial institution in the

Community for the maintenance of accounts;

3. payments to a person, entity or body person included in the
list referred to in Article 2(3), due under contracts, agree-
ments or obligations which were concluded or arose before
the entry into force of this Regulation provided that those
payments are made into a frozen account within the
Community.

Requests

for authorisations

3.
to the
competent authority of the Member State in whose territory
the funds, other financial assets or other economic resources
have been frozen.

shall be made

Article 6

1.
Notwithstanding the provisions of Article 2 and with a
view to the protection of the interests of the Community,
which include the interests of its citizens and residents, the
competent authorities of a Member State may grant specific
authorisations:
— to unfreeze funds, other financial assets or other economic

resources,

— to make funds, other financial assets or other economic
resources available to a person, entity or body included in
the list referred to in Article 2(3), or

— to render financial services to such person, entity or body,

after consultation with the other Member States, the Council
and the Commission in accordance with paragraph 2.

2.
A competent authority which receives a request for an
authorisation referred to in paragraph 1 shall notify the
competent authorities of the other Member States, the Council
and the Commission, as listed in the Annex, of the grounds on
which it intends to either reject the request or grant a specific
authorisation,
it
considers necessary in order to prevent the financing of acts of
terrorism.

informing them of

the conditions

that

The competent authority which intends to grant a specific
authorisation shall take due account of comments made within

two weeks by other Member States,
Commission.

the Council and the

Article 7

The Commission shall be empowered, on the basis of informa-
tion supplied by Member States, to amend the Annex.

Article 8

The Member States, the Council and the Commission shall
inform each other of the measures taken under this Regulation
and supply each other with the relevant information at their
disposal in connection with this Regulation, notably informa-
tion received in accordance with Articles 3 and 4, and in
respect of violation and enforcement problems or judgments
handed down by national courts.

Article 9

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

This Regulation shall apply:

Article 10

1. within the territory of

the Community,

including its

airspace,

2. on board any aircraft or any vessel under the jurisdiction of

a Member State,

3. to any person elsewhere who is a national of a Member

State,

4. to any legal person, group or entity incorporated or consti-

tuted under the law of a Member State,

5. to any legal person, group or entity doing business within

the Community.

Article 11

1.
This Regulation shall enter into force on the day of its
publication in the Official Journal of the European Communities.

2. Within a period of one year from the entry into force of
this Regulation, the Commission shall present a report on the
impact of this Regulation and, if necessary, make proposals to
amend it.

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

Done at Brussels, 27 December 2001.

For the Council

The President

L. MICHEL

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LIST OF COMPETENT AUTHORITIES REFERRED TO IN ARTICLES 3, 4 AND 5

ANNEX

BELGIUM
Ministère des finances
Trésorerie
avenue des Arts 30
B-1040 Bruxelles
Fax (32-2) 233 75 18

DENMARK
Erhvervsfremmestyrelsen
Dahlerups Pakhus
Langelinie Alle 17
DK-2100 København Ø
Tel. (45) 35 46 60 00
Fax (45) 35 46 60 01

GERMANY
— concerning freeze of funds:
Deutsche Bundesbank
Wilhelm Eppsteinstr. 14
D-60431 Frankfurt/Main
Tel. (00-49-69) 95 66

— concerning insurances:

Bundesaufsichtsamt für das Versicherungswesen (BAV)
Graurheindorfer Str. 108
D-53117 Bonn
Tel. (00-49-228) 42 28

GREECE
Ministry of National Economy
General Directorate of Economic Policy
5 Nikis str.
GR-105 63 Athens
Tel. (00-30-1) 333 27 81-2
Fax (00-30-1) 333 27 93

Yπουργείο Εθνικήs Οικονοµίαs
Γενική ∆ιεύθυνση Οικονοµικήs Πολιτικήs
Νίκηs 5, 10562 ΑΘΗΝΑ
Τηλ.: (00-30-1) 333 27 81-2
Φαξ: (00-30-1) 333 27 93

SPAIN
Dirección General de Comercio e Inversiones
Subdirección General de Inversiores Exteriores
Ministerio de Economía
Paseo de la Castellana, 162
E-28046 Madrid
Tel. (00-34) 91 349 39 83
Fax (00-34) 91 349 35 62

Dirección General del Tesoro y Política Financiera
Subdirección General de Inspección y Control de Movimientos de Capi-
tales
Ministerio de Economía
Paseo del Prado, 6
E-28014 Madrid
Tel. (00-34) 91 209 95 11
Fax (00-34) 91 209 96 56

FRANCE
Ministère de l'économie, des finances et de l'industrie
Direction du Trésor
Service des affaires européennes et internationales
Sous-direction E
139, rue du Bercy
F-75572 Paris Cedex 12
Tel. (33-1) 44 87 17 17
Fax (33-1) 53 18 36 15

IRLAND

Central Bank of Ireland
Financial Markets Department
PO Box 559
Dame Street
Dublin 2
Tel. (353-1) 671 66 66

Department of Foreign Affairs
Bilateral Economic Relations Division
76-78 Harcourt Street
Dublin 2
Tel. (353-1) 408 24 92

ITALY

Ministero dell'Economia e delle Finanze
…

LUXEMBOURG

Ministère des affaires étrangères, du commerce extérieur, de la coopér-
ation, de l'action humanitaire et de la défense
Direction des relations économiques internationales
BP 1602
L-1016 Luxembourg
Tel. (352) 478-1 ou 478-2350
Fax (352) 22 20 48

Ministère des Finances
3 rue de la Congrégation
L-1352 Luxembourg
Tel. (352) 478-2712
Fax (352) 47 52 41

NETHERLANDS

Ministerie van Financiën
Directie Wetgeving, Juridische en Bestuurlijke Zaken
Postbus 20201
2500 EE Den Haag
Nederland
Tel. (31-70) 342 82 27
Fax (31-70) 342 79 05

AUSTRIA

— Article 3

Bundesministerium für Inneres — Bundeskriminalamt
A-1090 Wien
Josef-Holaubek-Platz 1
Tel. (+ 431) 313 45-0
Fax ( 431) 313 45-85 290

— Article 4

Oestereichische Nationalbank
A-1090 Wien
Otto-Wagner-Platz 3
Tel. + 431) 404 20-0
Fax ( 431) 404 20-73 99

Bundesministerium für Inneres — Bundeskriminalamt
A-1090 Wien
Josef-Holaubek-Platz 1
Tel. (+ 431) 313 45-0
Fax ( 431) 313 45-85 290

— Article 5

Oestereichische Nationalbank
A-1090 Wien
Otto-Wagner-Platz 3
Tel. + 431) 404 20-0
Fax ( 431) 404 20-73 99

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PORTUGAL

Ministério das Finanças
Direcção Geral dos Assuntos Europeus e Relações Internacionais
Avenida Infante D. Henrique, n.o 1, C 2.o
P-1100 Lisboa
Tel.: (351-1) 882 32 40/47
Fax: (351-1) 882 32 49

Ministério dos Negócios Estrangeiros
Direcção Geral dos Assuntos Multilaterias/Direcção dos Serviços das
Organizações Políticas Internacionais
Largo do Rilvas
P-1350-179 Lisboa
Tel.: (351 21) 394 60 72
Fax: (351 21) 394 60 73

FINLAND

Ulkoasiainministeriö/Utrikesministeriet
PL 176
SF-00161 Helsinki
Tel. (358-9) 13 41 51
Fax. (358-9) 13 41 57 07 and (358-9) 62 98 40

SWEDEN

— Article 3

Rikspolisstyrelsen (RPS)
Box 12256
102 26 Stockholm
tfn 08-401 90 00
fax 08-401 99 00

— Articles 4 and 6

Finanzinspektionen
Box 7831
103 98 Stockholm

tfn 08-787 80 00
fax 08-24 13 35

— Article 5

Riksförsäkringsverket (RFV)
103 51 Stockholm
tfn 08-786 90 00
fax 08-411 27 89

UNITED KINGDOM

HM Treasury
International Financial Services Team
19 Allington Towers
London SW1E 5EB
United Kingdom
Tel: (44-207) 270 55 50
Fax: (44-207) 270 43 65

Bank of England
Financial Sanctions Unit
Threadneedle Street
London EC2R 8AH
United Kingdom
Tel. (44-207) 601 46 07
Fax (44-207) 601 43 09

EUROPEAN COMMUNITY

Commission of the European Communities
Directorate-General for External Relations
Directorate CFSP
Unit A.2/Mr A. de Vries
Rue de la Loi/Wetstraat 200
B-1049 Bruxelles/Brussel
Tel.: (32-2) 295 68 80
Fax: (32-2) 296 75 63
E-mail: anthonius-de-vries@cec.eu.int