Proposal for a Council Regulation concerning the freezing of funds of the former Liberian President Charles Taylor and certain persons and entities associated with him
Date: 2004-04-07
Institutions: European Commission
Subjects: Liberia, economic resources, foreign capital, head of State, international sanctions

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 7.4.2004 
COM(2004) 264 final 

2004/0081 (CNS) 

Proposal for a 

COUNCIL REGULATION 

concerning the freezing of funds of the former Liberian President Charles Taylor and 
certain persons and entities associated with him  

(presented by the Commission) 

EN 

   EN 

 
 
 
  
EXPLANATORY MEMORANDUM 

(1) 
By  means  of  its  Resolution  1532  (2004)  of  12  March  2004  the  United  Nations 
Security  Council  decided  that  funds  and  economic  resources  belonging  to  former  Liberian 
President Charles Taylor and his immediate family members, and to close allies or associates 
as designated by the Committee of the Security Council established pursuant to paragraph 21 
of Resolution 1521 (2003), should be frozen. 

Accordingly, Common Position 2004/…./CFSP provides for the freezing of funds and 
(2) 
economic resources of the former Liberian President Charles Taylor and his immediate family 
members, close allies or associates. 

It is proposed to implement these measures, which fall within the scope of the Treaty, 

(3) 
by means of a Council Regulation. 

2 

 
 
  
 
2004/0081 (CNS) 

Proposal for a 

COUNCIL REGULATION 

concerning the freezing of funds of the former Liberian President Charles Taylor and 
certain persons and entities associated with him  

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  2004/…/CFSP  concerning  the  freezing  of  funds  of  the 
former Liberian President Charles Taylor and those persons and entities associated with him,1 

Having regard to the proposal from the Commission,2 

Having regard to the opinion of the European Parliament,3 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

United Nations Security Council Resolution 1532 (2004) of 12 March 2004 provides 
that  funds  and  economic  resources  belonging  to  former  Liberian  President  Charles 
Taylor  and  his  immediate  family  members,  and  to  close  allies  and  associates  as 
designated  by  the  Committee  of  the  Security  Council  established  pursuant  to 
paragraph 21 of Resolution 1521 (2003) should be frozen. 

The  actions  and  policies  of  former  Liberian  President  Charles  Taylor  and  other 
persons,  in  particular  their  depletion  of  Liberian  resources  and  their  removal  from 
Liberia  and  secreting  of  Liberian  funds  and  property  from  that  country,  have 
undermined  Liberia’s  transition  to  democracy  and  the  orderly  development  of  its 
political, administrative, and economic institutions and resources. 

In  view  of  the  negative  impact  on  Liberia  of  the  transfer  abroad  of  misappropriated 
funds and assets, the return of such funds and assets to Liberia is needed. 

Common Position 2004/…./CFSP provides for the implementation of the freezing of 
funds and economic resources of the former Liberian President Charles Taylor and his 
immediate family members, close allies and associates. 

These measures fall within the scope of the Treaty and, therefore, in order to avoid any 
distortion  of  competition,  Community  legislation  is  necessary  to  implement  them  as 
far as the Community is concerned. For the purpose of this Regulation, the territory of 

1 
2 
3 

OJ L , , p. . 
OJ C , , p. . 
Opinion delivered on…. 

3 

 
 
  
 
                                                 
the Community should be deemed to encompass the territories of the Member States 
to which the Treaty is applicable, under the conditions laid down in that Treaty. 

(6) 

(7) 

The  Common  Position  also  provides  that  certain  exemptions  from  the  freezing 
requirement  can  be  granted  for  humanitarian  purposes  or  the  satisfaction  of  liens  or 
judgments entered prior to the date of Resolution 1532 (2004). 

As  regards  the  obligations  of  a  credit  or  financial  institution  that  receives  funds 
transferred  by  third  parties  to  the  account  of  a  listed  person  or  entity,  it  should  be 
noted that the prohibition against making funds or economic resources available shall 
not  prevent  the  provisional  crediting  of  the  frozen  account  until  the  competent 
authorities  have  made  a  decision  whether  they  approve  the  crediting  or  whether  the 
funds should be the object of enforcement action against the third party that transferred 
them. Pending such decision the crediting should not be disclosed to the listed person 
or entity concerned. 

(8) 

In order to ensure that the measures provided for in this Regulation are effective, this 
Regulation should enter into force on the day of its publication, 

HAS ADOPTED THIS REGULATION: 

Article 1 

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

(1) 

(2) 

“Sanctions Committee” means: the Committee of the Security Council of the United 
Nations which was established pursuant to paragraph 21 of Resolution 1521 (2003); 

"funds" means financial assets and benefits of every kind, including but not limited 
to: 

(a) 

cash,  cheques,  claims  on  money,  drafts,  money  orders  and  other  payment 
instruments;  

(b)  deposits with financial institutions or other entities, balances on accounts, debts 

and debt obligations;  

(c) 

(d) 

(e) 

publicly and privately traded securities and debt instruments, including stocks 
and  shares,  certificates  representing  securities,  bonds,  notes,  warrants, 
debentures and 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;  

(f) 

letters of credit, bills of lading, bills of sale;  

(g)  documents evidencing an interest in funds or financial resources; 

(h) 

any other instrument of export-financing; 

4 

 
 
  
 
(3) 

(4) 

(5) 

1. 

2. 

3. 

1. 

"freezing of funds" means preventing any move, transfer, alteration, use of, access to, 
or  dealing  with  funds  in  any  way  that  would  result  in  any  change  in  their  volume, 
amount, location, ownership, possession, character, destination or other change that 
would enable the funds to be used, including portfolio management; 

"economic  resources"  means  assets  of  every  kind,  whether  tangible  or  intangible, 
movable or immovable, which are not funds but can be used to obtain funds, goods 
or services; 

"freezing of economic resources" means preventing their use to obtain funds, goods 
or services in any way, including, but not limited to, the selling, hiring or mortgaging 
of them. 

Article 2 

All funds and economic resources belonging to, or owned or held by the following 
persons and entities, designated by the Sanctions Committee and listed in Annex I, 
shall be frozen: 

(a) 

former Liberian President Charles Taylor and his immediate family members; 

(b) 

(c) 

(d) 

senior  officials  of  the  former  Taylor  regime,  and  other  close  allies  and 
associates; 

legal persons, bodies or entities owned or controlled, directly or indirectly by 
the persons referred to in subparagraphs (a) and (b); and  

any natural or legal person acting on behalf or at the direction of the persons 
referred to in subparagraphs (a) and (b). 

No funds or economic resources shall be made available, directly or indirectly, to or 
for the benefit of natural or legal persons, entities or bodies listed in Annex I. 

The  participation,  knowingly  and  intentionally,  in  activities  the  object  or  effect  of 
which is, directly or indirectly, to promote the transactions referred to at 1 and 2 shall 
be prohibited. 

Article 3  

By way of derogation from Article 2, the competent authorities of the Member States 
as listed in Annex II may authorise the release of certain frozen funds or economic 
resources or the making available of certain frozen funds or economic resources, if 
the  competent  authority  has  determined  that  the  funds  or  economic  resources 
concerned are: 

(a) 

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

5 

 
 
  
 
(b) 

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

(c) 

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

provided it has notified the intention to authorise access to such funds and economic resources 
to  the  Sanctions  Committee  and  has  not  received  a  negative  decision  by  the  Sanctions 
Committee within two working days of such notification. 

2. 
By way of derogation from Article 2, the competent authorities of the Member States 
as listed in Annex II may authorise the release of certain frozen funds or economic resources 
or  the  making  available  of  certain  frozen  funds  or  economic  resources,  if  the  competent 
authority has determined that the funds or economic resources are necessary for extraordinary 
expenses,  and  provided  that  competent  authority  has  notified  that  determination  to  the 
Sanctions Committee and that the determination has been approved by the Committee. 

Article 4 

By way of derogation from Article 2, the competent authorities of the Member States as listed 
in  Annex  II  may  authorise  the  release  of  certain  frozen  funds  or  economic  resources,  if  the 
following conditions are met: 

(a) 

the  funds  or  economic  resources  are  subject  of  a  judicial,  administrative  or 
arbitral lien established prior to 12 March 2004 or of a judicial, administrative 
or arbitral judgment rendered prior to that date; 

(b)  The  funds  or  economic  resources  will  be  used  exclusively  to  satisfy  claims 
secured  by  such  a  lien  or  recognised  as  valid  in  such  a  judgment,  within  the 
limits  set  by  applicable  laws  and  regulations  governing  the  rights  of  persons 
having such claims; 

(c)  The lien or judgment is not for the benefit of a person, entity or body referred 

to in Article 2; 

(d)  Recognising  the  lien  or  judgment  is  not  contrary  to  public  policy  in  the 

Member State concerned; 

(e)  The  competent  authority  has  notified  the  lien  or  judgment  to  the  Sanctions 

Committee. 

The relevant competent authority shall inform the competent authorities of the other Member 
States and the Commission of any authorisation granted under Articles 3 and 4. 

Article 5 

6 

 
 
  
 
Article 6 

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

(a) 

interest or other earnings on those accounts; or 

(b)  payments due under contracts, agreements or obligations that were concluded 
or  arose  prior  to  the  date  on  which  those  accounts  became  subject  to  this 
Regulation, 

provided that any such interest, other earnings and payments continue to be subject to Article 
2 (1). 

Article 7 

1. 

Without  prejudice  to  the  applicable  rules  concerning  reporting,  confidentiality  and 
professional secrecy and to the provisions of Article  284  of the Treaty, natural and 
legal persons, entities and bodies shall: 

(a) 

supply  immediately  any  information  which  would  facilitate  compliance  with 
this  Regulation,  such  as  accounts  and  amounts  frozen  in  accordance  with 
Article 2, to the competent authorities of the Member States listed in Annex II 
where they are resident or located, and shall transmit such information, directly 
or through these competent authorities, to the Commission; 

(b) 

cooperate with the competent authorities listed in Annex II in any verification 
of this information. 

Any  additional  information  directly  received  by  the  Commission  shall  be  made 
available to the competent authorities of the Member State concerned. 

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

2. 

3. 

Article 8 

The  freezing  of  funds  and  economic  resources  or  the  refusal  to  make  funds  or  economic 
resources  available,  carried  out  in  good  faith  on  the  basis  that  such  action  is  in  accordance 
with this Regulation, shall not give rise to liability of any kind on the part of the natural or 
legal person or entity implementing it, or its directors or employees, unless it is proved that 
the funds and economic resources were frozen as result of negligence. 

Article 9 

The  Commission  and  Member  States  shall  immediately  inform  each  other  of  the  measures 
taken under this Regulation and shall supply each other with any other relevant information at 
their  disposal  in  connection  with  this  Regulation,  in  particular  information  in  respect  of 
violation and enforcement problems and judgements handed down by national courts. 

7 

 
 
  
 
The Commission shall be empowered to: 

Article 10 

(a) 

amend  Annex  I  on  the  basis  of  determinations  made  by  either  the  United  Nations 
Security Council or the Sanctions Committee; and 

(b) 

amend Annex II on the basis of information supplied by Member States. 

Article 11 

The Member States shall lay down the rules on sanctions applicable to infringements of the 
provisions  of  this  Regulation  and  shall  take  all  measures  necessary  to  ensure  that  they  are 
implemented. The sanctions provided for must be effective, proportionate and dissuasive. 

The Member States shall notify those rules to the Commission without delay after the entry 
into force of this Regulation and shall notify it of any subsequent amendment. 

This Regulation shall apply: 

Article 12 

(a) 

(b) 

(c) 

(d) 

within the territory of the Community, including its airspace; 

on board any aircraft or any vessel under the jurisdiction of a Member State; 

to any person inside or outside the territory of the Community who is a national of a 
Member State; 

to  any  legal  person,  group  or  entity  which  is  incorporated  or  constituted  under  the 
law of a Member State; 

(e) 

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

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

Article 13 

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

Done at Brussels,  

For the Council 
The President 

8 

 
 
  
 
 
 
 
 
List  of  natural  and  legal  persons,  bodies  or  entities  associated  with  former  Liberian 
President Charles Taylor referred to in Article 2 

ANNEX I 

9 

 
 
  
 
List of competent authorities referred to in Articles 3, 4, 5, 7 and 10  

ANNEX II 

BELGIUM 

Service Public Fédéral des Finances  

Administration de la Trésorerie  

30 Avenue des Arts  

B-1040 Bruxelles  

Fax 00 32 2 233 74 65  

E-mail : Quesfinvragen.tf@minfin.fed.be 

DENMARK 

Erhvervs- og Boligstyrelsen  

Dahlerups Pakhus 

Langelinie Allé 17 

DK - 2100 København Ø 

Tel. (45) 35 46 60 00 

Fax (45) 35 46 60 01 

GERMANY 

Concerning financing and financial assistance: 

Deutsche Bundesbank 

Servicezentrum Finanzsanktionen 

Postfach 

D - 80281 München 

Tel. (49-89) 2889 3800 

Fax (49-89) 350163 3800 

GREECE 

Ministry of National Economy 

General Directorate of Economic Policy 

10 

 
 
  
 
 
5-7 Nikis str.  

GR - 101 80 Athens 

Tel. (00-30-10) 333 27 81-2 

Fax (00-30-10) 333 28 10, 333 27 93 

Yπουργείο Εθνικήs Οικονοµία 

Γενική ∆ιεύθυνση Οικονοµική Πολιτική 

Νίκηs 5-7 

GR - 101 80 Αθήνα 

Τηλ. (00-30-10) 333 27 81-2 

Φαξ (00-30-10) 333 28 10, 333 27 93 

SPAIN 

Dirección General del Tesoro y Política Financiera 

Subdirección General de Inspección y Control de Movimientos de Capitales 

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 
139, rue du Bercy F - 75572 Paris Cedex 12 

Tel. : (33) 1 44 87 17 17 

Télécopie :(33) 1 53 18 36 15 

IRELAND 

Central Bank of Ireland 

11 

E 

 
 
  
 
Financial Markets Department 

PO Box 559 

Dame Street  

Dublin 2 

Tel. (353-1) 671 66 66 

ITALY 

Ministero degli Affari esteri  

DGAS - Uff. II  

Roma  

Tel. (39) 06 36 91 24 35  

Fax (39) 06 36 91 45 34  

Ministero delle Attività produttive 

Gabinetto del vice ministro per il Commercio estero 

Roma 

Tel. (39) 06 59 64 75 47 

Fax (39) 06 59 64 74 94  

LUXEMBOURG 

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 Financiële Markten, afdeling Integriteit 

Postbus 20201 

2500 EE Den Haag 

Tel 070-342 8997 

12 

 
 
  
 
Fax: 070-342 7918 

AUSTRIA 

Österreichische Nationalbank 

Otto Wagner Platz 3, 

A-1090 Wien 

Tel. (01-4042043 1) 404 20-0 

Fax (43 1) 404 20 - 73 99 

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) 21 882 32 40/47  

Fax (351) 21 882 32 49 

FINLAND 

Ulkoasiainministeriö/Utrikesministeriet 

PL/PB 176 

00161 Helsinki/Helsingfors 

Tel. (358) 9 16 05 59 00 

Fax (358) 9 16 05 57 07 

Puolustusministeriö/Försvarsministeriet 

Eteläinen Makasiinikatu 8 

00131 Helsinki/Helsingfors 

PL/PB 31 

Tel. (358) 9 16 08 81 28 

Fax (358) 9 16 08 81 11 

13 

 
 
  
 
SWEDEN 

Finansinspektionen 

Box 7831  

S - 103 98 Stockholm  

Tel. 08-787 80 00  

Fax 08-24 13 35 

UNITED KINGDOM 

HM Treasury 

Financial Systems and International Standards 

1, Horse Guards Road 

London SW1A 2HQ 

United Kingdom 

Tel. (44-207) 270 5977 

Fax (44-207) 270 5430 

Bank of England 

Financial Sanctions Unit 

Threadneedle Street 

London EC2R 8AH 

United Kingdom 

Tel. (44-207) 601 4607 

Fax (44 207) 601 4309 

14