Proposal for a Council Regulation imposing specific restrictive measures against certain persons suspected of involvement in the assassination of former Lebanese Prime Minister Rafiq Hariri
Date: 2005-11-28
Institutions: European Commission
Subjects: Lebanon, UN resolution, economic sanctions, head of government, homicide, international sanctions, terrorism

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 28.11.2005 
COM(2005) 614 final 

2005/0234 (CNS) 

Proposal for a 

COUNCIL REGULATION 

imposing specific restrictive measures against certain persons suspected of involvement 
in the assassination of former Lebanese Prime Minister Rafiq Hariri 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

(1) 

(2) 

(3) 

(4) 

In  view  of  the  report  of  the  international  independent  investigation  commission 
concerning  the  investigation  into  the  14  February  2005  terrorist  bombing  in  Beirut, 
Lebanon, that killed former Lebanese Prime Minister Rafiq Hariri and 22 others, the 
United Nations Security Council decided on 31 October 2005 to take certain measures 
to support the investigation.  

The measures decided by the Security Council in its Resolution 1636 (2005) include, 
inter alia, the freezing of funds and economic resources of persons designated by the 
Committee  of  the  Security  Council  established  by  paragraph  3  (b)  of  UNSCR  1636 
(2005),  as  suspected  of  involvement  in  the  planning,  sponsoring,  organising  or 
perpetrating of the assassination of former Lebanese Prime Minister Rafiq Hariri and 
others.  

The freezing  of funds  and  economic  resources of designated persons falls within the 
scope of the Treaty. The Commission proposes to implement it by means of a Council 
Regulation. 

The proposed measures are similar to those imposed by means of 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,  by  Regulation  (EC)  No  1763/2004  imposing  certain  restrictive  measures  in 
support  of  effective  implementation  of  the  mandate  of  the  International  Criminal 
Tribunal  for  the  former  Yugoslavia  (ICTY),  and  by  Regulation  (EC)  No  1183/2005 
concerning  certain  restrictive  measures  in  respect  of  the  Democratic  Republic  of 
Congo.  

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2005/0234 (CNS) 

Proposal for a 

COUNCIL REGULATION 

imposing specific restrictive measures against certain persons suspected of involvement 
in the assassination of former Lebanese Prime Minister Rafiq Hariri 

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  Council  Common  Position  2005/xxx/CFSP  of  xx  November  2005 
concerning specific restrictive measures against certain persons suspected of involvement in 
the assassination of former Lebanese Prime Minister Rafiq Hariri1, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament2, 

Whereas: 

(1) 

(2) 

On 31 October 2005, the Security Council of the United Nations adopted Resolution 
1636  (2005)  noting  the  conclusion  of  the  report  of  the  International  Investigation 
Commission,  into  the  14  February  2005  terrorist  bombing  in  Beirut,  Lebanon,  that 
killed  former  Lebanese  Prime  Minister  Rafiq  Hariri  and  the  22  others,  and  caused 
injury to dozens of people..  

The  Security  Council  noted  with  extreme  concern  the  International  Investigation 
Commission’s  conclusion  that  there  is  converging  evidence  pointing  at  the 
involvement  of  both  Lebanese  and  Syrian  officials  in  this  terrorist  act,  and  acting 
under Chapter VII of the Chapter of the United Nations, decided, as a step to assist in 
the  investigation  of  this  crime  and  without  prejudice  to  the  ultimate  judicial 
determination of the guilt or innocence of any individual, to impose measures against 
all  individuals  suspected  of  involvement  in  the  planning,  sponsoring,  organizing  or 
perpetrating of this terrorist act. 

(3) 

Common Position 2005/XXX/CFSP provides for implementation of the measures set 
out  in  UNSCR  1636  (2005),  and  in  particular,  the  freezing  of  funds  and  economic 
resources of persons designated by the Committee of the Security Council established 
by  paragraph  3(b)  of  UNSCR  1636  (2005)  as  suspected  of  involvement  in  the 

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2 

OJ L [..],[..]2005 p. [..]. 
OJ C [..],[..]p. [..]. 

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planning,  sponsoring,  organising  or  perpetrating  of  the  assassination  of  former 
Lebanese Prime Minister Rafiq Hariri and others on 14 February 2005. 

(4) 

These measures fall within the scope of the Treaty and, therefore, notably with a view 
to  ensuring  their  uniform  application  by  economic  operators  in  all  Member  States, 
Community  legislation  is  necessary  to  implement  them  as  far  as  the  Community  is 
concerned.  

(5) 

For  reasons  of  expediency,  the  Commission  should  be  empowered  to  amend  the 
Annexes to this Regulation. 

(6)  Member  States  should  determine  the  penalties  applicable  to  infringements  of  the 
provisions  of  this  Regulation.  The  penalties  provided  for  should  be  proportionate, 
effective and dissuasive. 

(7) 

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 3(b) of UNSCR 1636 (2005); 

‘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; 

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3. 

4. 

5. 

6. 

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; 

‘territory of the Community’ means the territories of the Member States to which the 
Treaty is applicable, under the conditions laid down in that Treaty. 

Article 2 

All  funds  and  economic  resources  belonging  to,  owned,  held  or  controlled  by  the 
natural or legal persons, entities or bodies listed in Annex I shall be frozen. 

No funds or economic resources shall be made available, directly or indirectly, to or 
for the benefit of the 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 circumvent the measures referred to in paragraphs 
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,  under  such  conditions  as  they  deem 
appropriate, the release of certain frozen funds or economic resources or the making 
available of certain funds or economic resources, having determined that the funds or 
economic resources concerned are:  

(a) 

(b) 

necessary  for  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; or 

(c) 

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

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provided  that  the  Member  State  concerned  has  notified  that  determination  to  the 
Sanctions  Committee  and  that  the  determination  has  been  approved  by  that 
Committee. 

2. 

3. 

The relevant competent authority shall inform the competent authorities of the other 
Member States and the Commission of any authorisation granted under paragraph 1. 

Article  2(2)  shall  not  apply  to  the  addition  to  frozen  accounts  of  interest  or  other 
earnings  on  those  accounts  provided  that  any  such  interest  or  other  earnings  are 
frozen in accordance with Article 2(1). 

Article 4 

Article 2(2) shall not prevent the crediting of the frozen accounts by financial institutions that 
receive  funds  transferred  by  third  parties  to  the  account  of  a  listed  person,  entity  or  body, 
provided  that  any  such  additions  to  such  accounts  will  also  be  frozen  in  accordance  with 
Article  2(1).  The  financial  institution  shall  inform  the  competent  authorities  about  such 
transactions without delay. 

Article 5 

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. Such purposes shall be 
deemed  to  include  cooperation  with  any  international  investigation  related  to  the 
assets  or  financial  transactions  of  the  natural  and  legal  persons,  bodies  and  entities 
listed in Annex I. 

2. 

3. 

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Article 6 

The  freezing  of  funds  and  economic  resources  or  the  refusal  to  make  funds  or  economic 
resources  available,  carried  out  in  good  faith  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 7 

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 judgments handed down by national courts. 

Article 8 

1. 

The Commission shall be empowered to: 

(a) 

amend  Annex  I  on  the  basis  of  determinations  made  by  the  Sanctions 
Committee; and 

(b) 

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

2. 

Without  prejudice  to  the  rights  and  obligations  of  the  Member  States  under  the 
Charter of the United Nations, the Commission shall maintain all necessary contacts 
with the Sanctions Committee for the purpose of the effective implementation of this 
Regulation. 

Article 9 

The Member  States  shall  lay  down  the  rules on penalties  applicable to  infringements  of the 
provisions  of  this  Regulation  and  shall  take  all  measures  necessary  to  ensure  that  they  are 
implemented. The penalties 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. 

Article 10 

This Regulation shall apply: 

(a) 

within the territory of the Community, including its airspace; 

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(b) 

(c) 

(d) 

(e) 

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, entity or body which is incorporated or constituted under the law 
of a Member State; 

to any legal person, entity or body in respect of any business done in whole or in part 
within the Community. 

Article 11 

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

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

Done at Brussels, […]  

For the Council 
The President 

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List of natural and legal persons, entities and entities referred to in Article 2 

ANNEX I 

ANNEX II 

List of competent authorities referred to in Articles 3 and 5 

(to be completed by the Member States)  

BELGIUM 

CZECH REPUBLIC 

DENMARK 

GERMANY 

ESTONIA 

GREECE 

SPAIN 

FRANCE 

IRELAND 

ITALY 

CYPRUS 

LATVIA 

LITHUANIA 

LUXEMBOURG 

HUNGARY 

MALTA 

NETHERLANDS 

AUSTRIA 

POLAND 

PORTUGAL 

SLOVENIA 

SLOVAKIA 

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FINLAND 

SWEDEN 

UNITED KINGDOM 

EUROPEAN COMMUNITY 

Commission of the European Communities 

Directorate-General for External Relations 

Directorate Common Foreign and Security Policy (CFSP) and European Security and Defence 
Policy (ESDP): Commission Coordination and contribution 

Legal and institutional matters, CFSP Joint Actions, Sanctions, Kimberley Process 

CHAR 12/163 

B-1049 Bruxelles/Brussel 

Tel. (32-2) 295 55 85/ 299 11 76/ 296 25 56 

Fax (32-2) 296 75 63 

Email relex-sanctions@cec.eu.int 

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