Proposal for a Council Regulation amending, as regards the exemptions to the freezing of funds and economic resources and for the tenth time, Regulation (EC) No 881/2002 imposing certain specific restrictive measures directed against certain persons and entities associated with Usama bin Laden, the Al-Qaida network and the Taliban
Date: 2003-02-03
Institutions: European Commission
Subjects: bank deposit, common foreign and security policy, international sanctions, terrorism

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 03.02.2003
COM(2003) 41 final

2003/0015 (CNS)

Proposal for a

COUNCIL REGULATION

amending, as regards the exemptions to the freezing of funds and economic resources
and for the tenth time, Regulation (EC) No 881/2002 imposing certain specific restrictive
measures directed against certain persons and entities associated with Usama bin Laden,
the Al-Qaida network and the Taliban

(presented by the Commission)

1.

2.

3.

EXPLANATORY MEMORANDUM

Council  Regulation  (EC)  No  881/2002  of  27  May,  inter  alia,  repeals  the  existing
measures in relation to Afghanistan (Regulation (EC) No 467/2001) and implements,
inter  alia,  the  freezing  of  funds  and  economic  resources  provided  for  by  Common
Position 2002/402/CFSP.

The  freezing  measures  were  imposed  in  conformity  with  Resolutions  1267(1999),
1333(2000)  and  1390(2002)  of  the  Security  Council  of  the  UN.  By  means  of
Resolution  1452(2002)  of  20  December  2002,  the  Security  Council  decided  that
provision  has  to  be  made  for  certain  exemptions  and  exceptions  to  the  freezing  of
funds  and  economic  resources.  The  Regulation  should,  therefore,  be  amended
accordingly.

The exemptions will facilitate the  application of  freezing  measures.  The exceptions
should be granted on  grounds  of  humanitarian need. Resolution 1452(2002), which
was adopted on the initiative of the EU members of the Security Council, addresses
the concerns about possible infringement of fundamental rights, as expressed by the
European  Parliament  in  its  Opinion  of  11  April  2002  (COM(2002)117  -  C5-
0132/2002 - 2002/0059(CNS)).

2

2003/0015 (CNS)

Proposal for a

COUNCIL REGULATION

amending, as regards the exemptions to the freezing of funds and economic resources
and for the tenth time, Regulation (EC) No 881/2002 imposing certain specific restrictive
measures directed against certain persons and entities associated with Usama bin Laden,
the Al-Qaida network and the Taliban

THE COUNCIL OF THE EUROPEAN UNION,

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

Having  regard  to  Common  Position  2002/402/CFSP  of  27  May  2002  concerning  restrictive
measures  against  Usama  bin  Laden,  members  of  the  Al-Qaida  organisation  and  the  Taliban
and  other  individuals,  groups,  undertakings  and  entities  associated  with  them  and  repealing
Common Positions 96/746/CFSP, 1999/727/CFSP, 2001/154/CFSP and 2001/771/CFSP,1

Having regard to the proposal from the Commission,2

Having regard to the opinion of the European Parliament,3

Whereas:

(1) 

(2) 

Common Position 2002/402/CFSP provides, inter alia, that the European Community
should  take  a  number  of  restrictive  measures,  including  the  freezing  of  funds  and
economic  resources,  in  accordance  with  Resolutions  1267(1999),  1333(2000)  and
1390(2001) of the Security Council of the United Nations.

The  freezing  of  funds  and  economic  resources  has  been  implemented  by  means  of
Council  Regulation  (EC)  No  881/2002  of  27  May  2002  imposing  certain  specific
restrictive  measures  directed  against  certain  persons  and  entities  associated  with
Usama  bin  Laden,  the  Al-Qaida  network  and  the  Taliban,  and  repealing  Council
Regulation (EC) No 467/2001 prohibiting the export of certain goods and services to
Afghanistan, strengthening the flight ban and extending the freeze of funds and other
financial  resources  in  respect  of  the  Taliban  of  Afghanistan4,  as  last  amended  by
Commission Regulation (EC) No ../2003.5

(3) 

By  means  of  its  Resolution  1452(2002)  of  20  December  2002,  the  Security  Council
made a number of exemptions and exceptions to the freezing of funds and economic

1

2

3

4

5

OJ L 139, 29.5.2002, p. 4.
OJ C […], […], p. .
OJ C […], […], p. .
OJ L 139, 29.5.2002, p. 9.
OJ L […], […], p. .

3

                                                
resources  under  Resolutions  1267(1999),  1333(2000)  and  1390(2002).  These
exceptions  should  be  granted  on  grounds  of  humanitarian  need  and  are  subject  to
approval by the Sanctions Committee.

(4) 

Consequently, Regulation (EC) No 881/2002 should be amended to bring it into line
with Common Position 2002/402/CFSP and the Resolutions to which it refers,

HAS ADOPTED THIS REGULATION:

The following Article 2a is inserted in Regulation (EC) No 881/2002:

Article 1

"Article 2a

1. 

Article 2 shall not apply to the use of funds or economic resources where

(a)

any of  the  competent authorities of  the Member  States, as listed  in  Annex  II,
has  determined,  upon  request  made  by  an  interested  natural  or  legal  person,
that the use of these funds or economic resources is:

(1)

(2)

(3)

(4)

necessary  to  cover  basic  expenses,  including  payments  for  foodstuffs,
rent  or  mortgage,  medicines  and  medical  treatment,  taxes,  insurance
premiums, and public utility charges;

intended  exclusively  for  payment  of  reasonable  professional  fees  and
reimbursement  of  incurred  expenses  associated  with  the  provision  of
legal services;

intended  exclusively  for  payment  of  fees  or  service  charges  for  routine
holding or maintenance of frozen funds or frozen economic resources; or

necessary  for  extraordinary  expenses,  where  sufficient  justification  for
incurring these expenses has been provided by the person, group or entity
whose funds and economic resources have been frozen; and

(b)

after notification of findings referred to at point (a), the Sanctions Committee
has not objected within 48 hours to findings made in respect of uses referred to
at points (1), (2) and (3) thereof, or has approved the intended use described at
point (4) thereof.

2. 

The  competent  authority  listed  in  Annex  II  shall  promptly  confirm,  in  writing,  the
decision made by the Sanctions Committee, to both the person that made the request
and any other person, body or entity known to be directly concerned.

Confirmation in writing issued by a competent authority listed in Annex  II shall be
valid throughout the Community.

3. 

Article 2(2) shall not apply to the addition to frozen accounts of

–  interest or other earnings due on frozen accounts;

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–  payments  due  under  contracts  and  agreements  which  became  effective,  or  due
pursuant to obligations which arose, prior to the earliest date on which the account
had to be frozen as a result of the entry into force of  either Regulation  (EC) No
337/2000,6 Regulation (EC) No 467/2001,7 or Regulation (EC) No 881/2002.

Like the account to which they are added, such interest, other earnings and payments
shall also be frozen."

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

Article 2

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

Done at Brussels,

For the Council
The President

6

7

OJ L 43, 16.2.2000, p. 1.
OJ L 67, 9.3.2001, p. 1.

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