Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the definition of criminal offences and penalties for the violation of Union restrictive measures
Date: 2022-12-02
Institutions: Directorate-General for Justice and Consumers, European Commission
Subjects: EU restrictive measure, economic sanctions, international sanctions, international security, judicial cooperation in criminal matters in the EU, legal person, natural person, offence, third country

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   EUROPEAN COMMISSION  Brussels, 2.12.2022  COM(2022) 684 final 2022/0398 (COD)  Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the definition of criminal offences and penalties for the violation of Union restrictive measures  
 
EXPLANATORY MEMORANDUM 

1. 

 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Restrictive  measures  are  an  essential  tool  for  promoting  the  objectives  of  the  Common 
Foreign and Security Policy (CFSP), as set out in Article 21 of the Treaty on European Union 
(TEU). These objectives include safeguarding EU values, maintaining international peace and 
security, and consolidating and supporting democracy, the rule of law and human rights. 

To preserve these values, the EU may impose restrictive measures against non-EU countries, 
entities, legal or natural persons. These measures comprise targeted individual measures, i.e. 
targeted  financial  sanctions  (asset  freezes)  and  restrictions  on  admissions  (travel  bans),  and 
sectoral measures, i.e. arms embargoes or economic and financial measures (e.g. import and 
export  restrictions,  and  restrictions  on  the  provision  of  certain  services,  such  as  banking 
services)1. 

Currently, the EU has over 40 sets of restrictive measures in place. Some of these implement 
restrictive measures adopted by the United Nations; others are adopted autonomously by the 
EU. In addition to measures addressing country-specific situations, the EU has also adopted 
general  measures  targeting  the  proliferation  and  use  of  chemical  weapons,  cyberattacks, 
human rights  violations, and terrorism2.  Restrictive measures are binding  on Member States 
and on any person or entity under the jurisdiction of Member States (EU operators)3. 

(1) 

Inconsistent enforcement of Union restrictive measures 

As  the  adoption  of  Union  restrictive  measures  has  intensified  over  recent  decades4,  so  too 
have the schemes to circumvent them. The Commission has previously pointed to inconsistent 
enforcement  of  restrictive  measures  and  the  fact  that  this  undermines  their  efficacy  and  the 
EU’s ability to speak with one voice5. 

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The  Council  adopts  restrictive  measures.  The  Council  first  adopts  a  CFSP  Decision  under  Article 29 
TEU. The measures envisaged in the Council Decision are implemented at either EU or national level. 
It has been the practice so far that  measures such as arms  embargoes or restrictions on admission are 
implemented  directly  by  Member  States,  which  are  legally  bound  to  act  in  conformity  with  CFSP 
Council  Decisions.  Other  measures  include  interrupting  or  reducing,  in  part  or  completely,  economic 
relations with a third country  and individual measures to freeze funds and economic resources, and to 
prohibit  the  making  available  of  funds  and  economic  resources.  These  measures  are  implemented  by 
means of a Regulation adopted by the  Council,  acting by qualified  majority, on a joint proposal from 
the  High  Representative  of  the  Union  for  Foreign  Affairs  and  Security  Policy  and  the  Commission, 
under Article 215 TFEU. Anti-circumvention provisions can be found in both types of acts. 
For an overview, see the EU sanctions map, available at https://www.sanctionsmap.eu/#/main. 
Within the jurisdiction (territory) of the  Union, i.e.: (a) within the territory of the Union, including its 
airspace;  (b)  on  board  any  aircraft  or  any  vessel  under  the  jurisdiction  of  a  Member  State;  (c)  to  any 
person inside or outside the territory of the Union who is a national of a Member State; (d) to any legal 
person, entity or body, inside or outside the territory of the Union, which is incorporated or constituted 
under the law of a Member State; (e) to any legal person, entity or body in respect of any business done 
in whole or in part within the Union (see e.g. Article 17 of Council Regulation (EU) No 269/2014 of 17 
March  2014  concerning  restrictive  measures  in  respect  of  actions  undermining  or  threatening  the 
territorial integrity, sovereignty and independence of Ukraine, (OJ L 078 17.3.2014, p. 6) 
See the EU sanctions map, supra note 2. 
Communication  from  the  Commission,  The  European  economic  and  financial  system:  fostering 
openness,  strength  and  resilience,  COM(2021)  32  final  of  19.1.2021,  Section  5  (Strengthening  the 
implementation  and  enforcement  of  EU  sanctions),  p. 16,  available  at  https://eur-lex.europa.eu/legal-
the 
content/EN/TXT/PDF/?uri=CELEX:52021DC0032&from=EN.  In 

the  same  Communication, 

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Speaking  with  one  voice  has  become  particularly  urgent  in  the  current  context  of  Russia’s 
military aggression against Ukraine. The EU has put in place a series of restrictive measures 
against Russian and Belarusian individuals and entities, some of which date back to 2014. In 
this context, in order to enhance EU-level coordination in the enforcement of these restrictive 
measures, the Commission set up a ‘Freeze and Seize’ Task Force. This Task Force ensures 
coordination  among  Member  States  and  EU  agencies  such  as  Europol  and  Eurojust.  It  has 
regularly  discussed  the  need  for  a  common  criminal  law  approach  in  order  to  hold 
accountable natural and legal persons involved in the violation of Union restrictive measures. 

The  implementation  and  enforcement  of  Union  restrictive  measures  is  primarily  the 
responsibility of Member States. The competent authorities in Member States have to assess 
whether there has been a breach of the relevant  Council Decisions and  Council Regulations 
adopted  under  Article  29  TEU  or  Article 215  of  the  Treaty  on  the  Functioning  of  the 
European  Union  (TFEU),  respectively  and  to  take  appropriate  measures.  In  this  regard,  EU 
Regulations  systematically  include  a  provision  requiring  Member  States  to  adopt  national 
rules providing for effective, proportionate and dissuasive penalties for infringements of those 
Union legal acts6. 
Apart from the restrictions, these Decisions and Regulations generally include: 

 

 

an anti-circumvention clause, which prohibits knowing and intentional participation 
in activities that seek to circumvent the restrictive measures in point7; and 

other  obligations,  in  particular  to  report  on  steps  taken  to  implement  the  restrictive 
measures (e.g. reporting to authorities the amount of assets that have been frozen). 

While Article 29 TEU  and Article 215 TFEU provide a legal basis for the Council to  adopt 
the necessary measures in the case of adoption of Union restrictive measures, the legal basis 
for  the  adoption  of  restrictive  measures  does  not  provide  for  the  approximation  of  criminal 
law definitions and the types and levels of criminal penalties8. 

(2)  Differences among Member States’ criminal definitions and penalties 

In  the  absence  of  EU-level  harmonisation,  national  systems  differ  significantly  as  concerns 
criminalisation  of  the  violation  of  EU  law  on  Union  restrictive  measures.  In  12  Member 
States, the violation of Union restrictive measures is solely a criminal offence. In 13 Member 
States, the violation of these measures can amount to an administrative or a criminal offence9. 

Commission  notes that the implementation of  Union restrictive  measures is  not as uniform across the 
EU  as  it  ought  to  be.  This  creates  distortions  in  the  single  market  as  EU  companies,  including  EU 
subsidiaries  of  foreign  companies,  can  circumvent  prohibitions.  This  also  creates  uncertainty  among 
operators.  As  cited,  inconsistent  enforcement  undermines  the  efficacy  of  restrictive  measures  and  the 
EU’s ability to speak with one voice. Among other initiatives, the strategy calls for further coordination 
work between the Commission and Member States to ensure that national penalties for breaching Union 
restrictive measures are effective, proportionate and dissuasive. 
As  an  example,  see  Article 8  of  Council  Regulation  (EU)  No 833/2014  of  31 July  2014  concerning 
restrictive measures in view of Russia’s actions destabilising the situation in Ukraine, consolidated text 
available at EUR-Lex - 02014R0833-20220413 - EN - EUR-Lex (europa.eu). 
It is noted that that this clause is also applicable if the restrictive measures have not been breached; it is 
enough to participate in schemes created to that end. 
The approximation of criminal definitions and sanctions cannot take place on the non-legislative legal 
basis of Article 29 TEU or Article 215 TFEU. 
Genocide Network, Prosecution of sanctions (restrictive measures) violations in national jurisdictions: 
a 
at 
https://www.eurojust.europa.eu/sites/default/files/assets/genocide_network_report_on_prosecution_of_s
anctions_restrictive_measures_violations_23_11_2021.pdf.  In  view  of  a  presentation  in  the  Council 

comparative 

available 

analysis, 

Annex, 

2021, 

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The criteria according to which the conduct falls within one or other category of measures are 
usually related to its gravity (serious nature), determined in  either qualitative (intent, serious 
negligence) or quantitative (damage) terms10, but they are different in each Member State. In 
two Member States, the specific offence of the violation of Union restrictive measures can, at 
present, only lead to administrative penalties11. 

Penalty  systems  also  differ  substantially  across  Member  States.  In  14  Member  States,  the 
maximum length of imprisonment is between 2 and 5 years. In 8 Member States, maximum 
sentences between 8 and 12 years are possible12. The maximum fine that can be imposed for 
the  violation  of  Union  restrictive  measures  –  either  as  a  criminal  or  as  an  administrative 
offence – varies greatly across Member States, ranging from EUR 1 200 to EUR 5 000 00013. 

Fourteen  Member  States  provide  for  criminal  liability  of  legal  persons  for  the  violation  of 
Union  restrictive  measures14.  In  addition,  12  Member  States  provide  for  administrative 
penalties,  notably  fines,  which  may  be  imposed  on  legal  persons  when  their  employees  or 
their management violate restrictive measures. Maximum fines for legal persons range from 
EUR 133 000 to EUR 37.5 million15.  

(3)  Lack of criminal investigations and prosecutions 

In  practice,  very  few  individuals  or  legal  persons  responsible  for  the  violation  of  Union 
restrictive  measures  are  effectively  held  accountable16.  However,  the  Genocide  Network 
report  notes  that  ‘a  positive  trend  can  be  observed  recently  in  the  number  of  enforcement 
actions launched and the rise in penalties imposed by certain national authorities’17. 

Despite the positive trends in some Member States, there seem to be only a few in which there 
are ongoing judicial proceedings related to the violation of Union restrictive measures18. This 
can  serve  as  an  indication  that  in  many  Member  States  insufficient  priority  is  given  to 
investigating  and  prosecuting  the  violation  of  Union  restrictive  measures.  In  this  regard,  it 
should  be  noted  that  Europol  and  Eurojust  have developed  a  number  of  activities  to  further 
support  police  and  judicial  authorities  investigating  and  prosecuting  the  violation  of  Union 
restrictive measures. They have been cross-checking the list of EU-designated individuals and 

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Working Party on Judicial Cooperation in Criminal Matters (COPEN), the report was also published in 
Council document 7274/22 of 16 March 2022. 
Genocide Network, Prosecution of sanctions (restrictive measures) violations in national jurisdictions: 
a comparative analysis, 2021, Section 5.1., p. 22. 
Idem. 
Idem, Section 5.2., p. 23. 
Idem, Section 5.3., p. 24. 
Idem, based on the report of the Genocide Network and further investigation by the Commission. 
Idem. 
Genocide Network, Prosecution of sanctions (restrictive measures) violations in national jurisdictions: 
a  comparative  analysis,  2021,  p. 4.  An  overview  of  the  relevant  legislation  from  Member  States  and 
Network  Observer  States 
see 
in 
https://www.eurojust.europa.eu/sites/default/files/assets/genocide_network_report_on_prosecution_of_s
anctions_restrictive_measures_violations_23_11_2021.pdf.  In  view  of  a  presentation  in  the  Council 
Working Party on Judicial Cooperation in Criminal Matters (COPEN), the report was also published in 
Council document 7274 of 16 March 2022. 
Genocide Network, Prosecution of sanctions (restrictive measures) violations in national jurisdictions: 
a comparative analysis, 2021, p. 13. 
For  a  selection  of  cases,  see  Genocide  Network,  Prosecution  of  sanctions  (restrictive  measures) 
violations in national jurisdictions: a comparative analysis, 2021, p. 14. 

provided 

report, 

expert 

annex 

the 

the 

to 

is 

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companies against their databases. Europol has also launched ‘Operation Oscar’19 to support 
financial investigations by Member States targeting criminal assets owned by individuals and 
legal entities subject to Union restrictive measures. At the same time, criminal investigations 
and prosecutions often build on the detection and referral, from administrative authorities to 
law  enforcement,  of  violations  of  Union  restrictive  measures.  The  absence  of  such  referrals 
points to a lack of such operational cooperation within national enforcement chains. 

(4)  Negative consequences of the status quo 

In the absence of law enforcement, and of judicial authorities having appropriate and effective 
tools  and  resources  available  to  prevent,  detect,  investigate  and  prosecute  the  violation  of 
Union restrictive measures, designated individuals and legal persons whose assets are frozen 
may  continue  to  be  able  to  access  their  assets  in  practice  and  to  support  regimes  that  are 
targeted  by  Union  restrictive  measures,  thus  frustrating  the  objectives  of  those  restrictive 
measures. 

Moreover, Member States have very different definitions of, and  disparate penalties for, the 
violation  of  Union  restrictive  measures  under  their  administrative  and/or  criminal  law.  This 
indicates  that  the  same  infringement  might  be  punished  with  different  penalties  and  at 
different enforcement levels. This weakens the enforcement of Union restrictive measures and 
undermines the credibility of the EU’s objectives. 

Finally,  in  some  cases  the  proceeds  generated  by  the  activities  carried  out  in  violation  of 
Union  restrictive  measures  may  also  allow  the  entities  and  individuals  targeted  by  those 
restrictive measures to continue to engage in the behaviour for which they have been subject 
to restrictive measures. 

(5)  Objectives of the proposal 

Against  this  background,  following  a  European  Commission  proposal  presented  on 
25 May 202220, the Council has decided to identify the violation of Union restrictive measures 
as an area of crime that meets the criteria specified in Article 83(1) TFEU. This has enabled 
the  Commission  to  adopt  this  proposal  for  a  Directive  under  the  ordinary  legislative 
procedure, which aims to approximate the definition of criminal offences and penalties for the 
violation of Union restrictive measures. 

The objectives of this proposal are to: 

(a) 

(b) 

(c) 

(d) 

approximate  definitions of criminal  offences related to  the violation of Union 
restrictive measures; 

ensure  effective,  dissuasive  and  proportionate  penalty  types  and  levels  for 
criminal offences related to the violation of Union restrictive measures; 

foster cross-border investigation and prosecution; and 

improve the operational effectiveness of national enforcement chains to foster 
investigations, prosecutions and sanctioning. 

19 

20 

Europol,  EU-wide  operation  targeting  criminal  assets  in  relation  to  the  Russian  invasion  of  Ukraine, 
available  at:  https://www.europol.europa.eu/media-press/newsroom/news/eu-wide-operation-targeting-
criminal-assets-in-relation-to-russian-invasion-of-ukraine. 
European  Commission,  Proposal  for  a  Council  Decision  on  adding  the  violation  of  Union  restrictive 
measures  to  the  areas  of  crime  laid  down  in  Article 83(1)  of  the  Treaty  on  the  Functioning  of  the 
European Union, COM(2022) 247 of 25.5.2022. 

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 

Consistency with existing policy provisions in the policy area 

Article 2  TEU  lays  down  the  EU’s  common  values  of  human  dignity,  freedom,  democracy, 
equality, the rule of law and respect for human rights. The effective enforcement of restrictive 
measures,  including  through  criminal  law  measures  aimed  at  addressing  the  violation  of 
restrictive  measures,  supports  the  upholding  of  such  common  values  within  and  outside  the 
EU. 

Furthermore,  the  EU  constitutes  an  area  of  freedom,  security  and  justice  that  respects 
fundamental  rights,  and  different  legal  systems  and  traditions  of  Member  States.  It  aims  at 
ensuring  a  high  level  of  security  through  measures  that  include  preventing  and  combating 
crime, racism and xenophobia. Under Article 83(1) TFEU, the European Parliament and the 
Council  may  ‘establish  minimum  rules  concerning  the  definition  of  criminal  offences  and 
penalties  in  the  areas  of  particularly  serious  crime  with  a  cross-border  dimension,  resulting 
from  the  nature  or  impact  of  such  offences  or  from  a  special  need  to  combat  them  on  a 
common basis.’ 

The  approximation  of  definitions  and  penalties  for  the  criminal  offence  of  the  violation  of 
Union  restrictive  measures  complements  the  Commission  proposal  for  a  Directive  on  asset 
recovery and confiscation, implementing the Security Union Strategy21 and the EU strategy to 
tackle organised crime22. The proposal for a Directive on asset recovery and confiscation aims 
at  strengthening  the  capabilities  of  national  authorities  to  trace  and  identify,  freeze  and 
manage  property  that  constitutes  the  proceeds  or  instrumentalities  of  crime.  Furthermore,  it 
provides  for  a  reinforced  legal  framework  on  confiscation,  including  specific  cases  where  a 
conviction for a specific crime is not possible. 

In addition, the proposal for a Directive on asset recovery and confiscation contributes to the 
effective implementation of restrictive measures since it requires Member States to enable the 
tracing  and  identification  of  property  linked  to  violations  of  Union  restrictive  measures  as 
defined under national law. Moreover, the proposal makes the revised rules on asset recovery 
and  confiscation  applicable  to  the  criminal  offence  of  the  violation  of  Union  restrictive 
measures. 

Following  the  adoption  of  this  proposal  for  a  Directive  approximating  the  definitions  and 
penalties  related  to  the  violation  of  Union  restrictive  measures,  the  rules  on  tracing  and 
identification,  freezing,  management,  and  confiscation  measures  will  become  applicable  to 
property  related  to  the  violation  of  Union  restrictive  measures.  In  the  end,  proceeds  of  the 
violation  of  Union  restrictive  measures,  for  example  in  instances  where  individuals  and 
companies  would  make  funds  available  to  those  subject  to  targeted  financial  sanctions  (i.e. 
asset  freezes),  could  become  the  object  of  confiscation  measures.  At  the  same  time, 
instrumentalities  used  to  pursue  the  violation  of  restrictive  measures  could  also  become  the 
object of confiscation. 

 

21 

22 

Consistency with other Union policies 

Communication from the Commission to the European Parliament, the European Council, the Council, 
the European Economic and Social Committee and the Committee of the Regions on the EU Security 
Union Strategy, COM(2020) 605 final of 24.7.2020. 
Communication from the Commission to the European Parliament, the European Council, the Council, 
the European Economic and Social Committee and the Committee of the Regions on the EU strategy to 
tackle organised crime, COM(2021) 170 final of 14.4.2021. 

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Council Regulations on Union restrictive measures 

The establishment of minimum rules concerning the criminal law definition of, and penalties 
for, the violation  of restrictive measures based on Article 83(1) TFEU  would  strengthen the 
enforcement of restrictive measures in Member States, thereby complementing  the measures 
taken in accordance with Article 29 TEU and Article 215 TFEU. The provision on penalties 
in  Regulations No 833/2014 and No 269/201423 have been strengthened as part of the sixth 
package of restrictive measures in response to the Russian war of aggression against Ukraine. 
The  amended  provisions  oblige  Member  States  to  lay  down  rules  on  penalties,  including 
criminal penalties, applicable to infringements of these Regulations and to take all measures 
necessary to ensure that they are implemented. The penalties must be effective, proportionate 
and  dissuasive.  Member  States  must  also  provide  for  appropriate  measures  for  the 
confiscation of the proceeds of such infringements. 

On 21 July 2022, the Council adopted Council Regulation (EU) 2022/127324, which amends 
Article 8  and  Article 9  of  Council  Regulation  (EU)  No 269/2014.  In  particular,  in  order  to 
ensure  the  effective  and  uniform  implementation  of  this  Regulation,  and  in  view  of  the 
increasing  complexity  of  evasion  schemes  of  restrictive  measures,  which  hamper  such 
implementation, it obliges designated persons and entities with assets within the jurisdiction 
of a Member State to report these assets and to cooperate with the competent authority in the 
verification  of  this  reporting  (Article 9)25.  Failure  to  respect  this  obligation  will  constitute a 
circumvention26.  Regulation  2022/1273  also  strengthens 
the  provision  on  reporting 
obligations for EU operators, with a view to preventing the breach and circumvention of the 
freezing of assets (Article 8)27. 

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25 

26 
27 

at: 

version 

p. 6-15, 

available 

consolidated 

Council  Regulation  (EU)  No 833/2014  of  31 July  2014  concerning  restrictive  measures  in  view  of 
Russia’s  actions  destabilising  the  situation  in  Ukraine,  OJ  L  229,  31.7.2014,  p. 1-11,  consolidated 
version  available  at:  EUR-Lex  -  02014R0833-20220604  -  EN  -  EUR-Lex  (europa.eu);  Council 
Regulation (EU) No 269/2014 of 17 March 2014 concerning restrictive measures in respect of actions 
undermining or threatening the territorial integrity, sovereignty and independence of Ukraine, OJ L 78, 
https://eur-lex.europa.eu/legal-
17.3.2014, 
content/EN/TXT/?uri=CELEX%3A02014R0269-20220604. 
Council  Regulation  (EU)  2022/1273  of  21 July  2022  amending  Regulation  (EU)  No 269/2014 
concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, 
sovereignty and independence of Ukraine, ST/11451/2022/INIT, OJ L 194, 21.7.2022, p. 1-4. 
Article 9(1)-(3) of Regulation (EU) No 269/2014 as amended: ‘1. It shall be prohibited to participate, 
knowingly  and  intentionally,  in  activities  the  object  or  effect  of  which  is  to  circumvent  the  measures 
referred to in Article 2. 2. Natural or legal persons, entities or bodies listed in Annex I, shall: (a) report 
before  1 September  2022  or  within  6  weeks  from  the  date  of  listing  in  Annex  I,  whichever  is  latest, 
funds  or  economic  resources  within  the  jurisdiction  of  a  Member  State  belonging  to,  owned,  held  or 
controlled  by  them,  to  the  competent  authority  of  the  Member  State  where  those  funds  or  economic 
resources  are  located;  and  (b)  cooperate  with  the  competent  authority  in  any  verification  of  such 
information. 3. Failure to comply with paragraph 2 shall be considered as participation, as referred to in 
paragraph  1,  in  activities  the  object  or  effect  of  which  is  to  circumvent  the  measures  referred  to  in 
Article 2.’ 
Idem. 
Article 8(1)  of  Regulation  (EU)  No 269/2014  as  amended:  ‘1.  Notwithstanding  the  applicable  rules 
concerning  reporting,  confidentiality  and  professional  secrecy,  natural  and  legal  persons,  entities  and 
bodies  shall:  (a)  supply  immediately  any  information  which  would  facilitate  compliance  with  this 
Regulation,  such  as  information  on  accounts  and  amounts  frozen  in  accordance  with  Article 2  or 
information held about funds and economic resources within Union territory belonging to, owned, held 
or controlled by natural or legal persons, entities or bodies listed in Annex I and which have not been 
treated as frozen by the natural and legal persons, entities and bodies obliged to do so, to the competent 
authority of the Member State where they are resident or located, and shall transmit such information, 

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However,  Article 29  TEU  and  Article 215  TFEU  are  not  the  suitable  legal  basis  for  the 
approximation of criminal definitions and the types and levels of criminal penalties. 

2021 Commission Communication on the European economic and financial system 

Furthermore,  in  its  2021  Communication  The  European  economic  and  financial  system: 
fostering openness, strength and resilience28, the Commission notes that the implementation 
of Union restrictive measures is not as uniform across the EU as it ought to be. This creates 
distortions  in  the  single  market,  as  EU  companies,  including  EU  subsidiaries  of  foreign 
companies,  can  find  means  to  circumvent  the  restrictive  measures.  This  also  creates 
uncertainty  among  operators.  Inconsistent  enforcement  undermines  the  efficacy  of  Union 
restrictive measures and the EU’s ability to speak with one voice. Among other initiatives, the 
strategy calls  for further coordination work between the Commission  and Member States to 
ensure  that  national  penalties  for  breaching  Union  restrictive  measures  are  effective, 
proportionate and dissuasive. 

Technical Support Instrument 

Finally, under the Technical Support  Instrument29, the Commission supports Member States 
to  provide  capacity  building  and  technical  advice  on  the  implementation  of  restrictive 
measures. 

2. 

 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Under  Article 83(1)  TFEU,  the  European  Parliament  and  the  Council  may,  by  means  of 
directives adopted in accordance with the ordinary legislative procedure, establish minimum 
rules  concerning  the  definition  of  criminal  offences  and  sanctions  in  areas  of  particularly 
serious  crime  with  a  cross-border  dimension  resulting  from  the  nature  or  impact  of  such 
offences or from a special need to combat them on a common basis. 

These  areas  of  crime  are  the  following:  terrorism;  trafficking  in  human  beings  and  sexual 
exploitation  of  women  and  children;  illicit  drug  trafficking;  illicit  arms  trafficking;  money 
laundering;  corruption;  counterfeiting  of  means  of  payment;  computer  crime;  and  organised 
crime. On the basis of developments in crime, the Council may adopt a decision identifying 
other  areas  of  crime  that  meet  the  criteria  specified  in  this  paragraph.  In  doing  so,  it  acts 
unanimously after obtaining the consent of the European Parliament. 

Following  the  adoption  of  Council  Decision  2022/233230,  the  areas  of  crime  listed  in 
Article 83(1)  TFEU  now  also  include  the  violation  of  Union  restrictive  measures.  This  has 
enabled the Commission to put forward the current proposal for a Directive. 

28 
29 

30  

directly  or  through  the  Member  State,  to  the  Commission;  and  (b)  cooperate  with  the  competent 
authority in any verification of such information.’ 
COM(2021) 32 final of 19.1.2021. 
Commission Implementing Decision of 9.3.2022 on the financing of the Technical Support Instrument 
and adoption of the work programme for 2022, C (2022) 1379 final of 9.3.2022. 
Council  Decision  (EU)  2022/2332  of  28 November  2022  on  identifying  the  violation  of  Union 
restrictive measures as an area of crime that meets the criteria specified in Article 83(1) of the Treaty on 
the Functioning of the European Union, ST/10287/2022/REV/1, OJ L 308, 29.11.2022, p. 18–21  

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 

Subsidiarity (for non-exclusive competence) 

The objectives  of this Directive  are  to  ensure common definitions of offences related to  the 
violation  of  Union  restrictive  measures  and  the  availability  of  effective,  dissuasive  and 
proportionate  criminal  penalties  for  serious  offences  related  to  the  violation  of  Union 
restrictive measures. As discussed in more detail in the following paragraphs, these objectives 
cannot be sufficiently achieved by Member States. They can instead be better achieved at EU 
level, by reason of the scale and effects of the conduct at stake, which is of an inherent cross-
border  nature  and  which  potentially  undermines  the  achievement  of  EU  objectives  to 
safeguard international peace and security, and to uphold EU common values. Therefore, the 
EU may adopt the necessary measures in accordance with the principle of subsidiarity as set 
out in Article 5 TEU. 

The  violation  of  Union  restrictive  measures  is  a  particularly  serious  area  of  crime,  since  it 
may  perpetuate  threats  to  international  peace  and  security,  undermine  the  consolidation  of, 
and  support  for,  democracy,  the  rule  of  law  and  human  rights,  and  result  in  significant 
economic,  social  and  environmental  damage.  Because  of  such  violations,  individuals  and 
entities whose assets are frozen or whose activities are restricted continue to be able to access 
their assets thus frustrating the objectives of those restrictive measures. Similarly, the money 
generated  by  the  exploitation  of  goods  and  natural  resources  traded  in  violation  of  Union 
restrictive measures may also allow the regimes targeted by those restrictive measures to have 
continued  access  to  the  necessary  means  (i.e.  purchase  the  arms  and  weapons)  with  which 
they  maintain  repressive  practices  and  continue  committing  grave  crimes.  The  violation  of 
Union  restrictive  measures  relating  to  trade  could  furthermore  contribute  to  the  illegal 
exploitation of natural resources in the jurisdiction targeted by those restrictive measures. 

In addition, the fact that Member States, under their administrative and/or criminal law, have 
very  different  definitions  and  penalties  for  the  violation  of  Union  restrictive  measures 
suggests  that  the  same  infringement  might  be  punished  with  different  penalties  and  face 
different  enforcement  levels.  These  differences  represent  an  obstacle  to  the  consistent 
application  of  the  Union  policy  on  restrictive  measures.  They  may  even  lead  to  forum 
shopping by offenders and could ultimately lead to their (quasi) impunity in case they choose 
to conduct their activities in the Member State(s) that provide for less severe penalties or have 
a  record  of  being  lenient  in  the  prosecution  for  the  violation  of  Union  restrictive  measures. 
This undermines the efficiency of restrictive measures and their enforcement at Union level. 
Such a situation has the risk of frustrating the EU objectives to safeguard international peace 
and security and uphold EU common values. Therefore, there is a special need for common 
action  at  EU  level,  by  means  of  criminal  law,  to  address  the  violation  of  Union  restrictive 
measures. 

Furthermore, violations of Union restrictive measures have a clear and at times even inherent 
cross-border  dimension.  Not  only  are  they  usually  committed  by  natural  persons  and  legal 
entities  operating  on  a  global  scale,  but,  in  some  cases,  Union  restrictive  measures,  such  as 
restrictions  on  banking  services,  even  forbid  cross-border  operations.  Hence,  by  definition, 
their  violation  is  conduct  with  a  cross-border  dimension  requiring  a  common  cross-border 
response at EU level. 

Finally, harmonisation would also increase the deterrent effect of penalties for the violation of 
Union restrictive measures.  

 

Proportionality 

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In accordance with the principle of proportionality, as set out in Article 5 TEU, this Directive 
does  not  go  beyond  what  is  necessary  to  achieve  its  objective.  The  approximation  of 
definitions  of  criminal  offences  and  the  types  and  levels  of  criminal  penalties  is  limited  to 
what is needed to effectively address the violation of Union restrictive measures in Member 
States. Measures on the use of investigative tools and information exchange are included only 
to the extent needed for the proposed criminal law framework to function effectively. 

 

Choice of the instrument 

Under  Article 83(1)  TFEU,  the  European  Parliament  and  the  Council  may,  by  means  of 
directives adopted in accordance with the ordinary legislative procedure, establish minimum 
rules concerning the definition of criminal offences and sanctions in the areas of particularly 
serious  crime  with  a  cross-border  dimension  resulting  from  the  nature  or  impact  of  such 
offences or from a special need to combat them on a common basis. 

3. 

 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EVALUATIONS, 

EX POST 

OF 

STAKEHOLDER 

Stakeholder consultations 

Targeted consultations were conducted with Member States in the Working Party on Judicial 
Cooperation  in  Criminal  Matters  (COPEN)  (8 September 2022),  Europol  (5 September)  and 
Eurojust (13 September). DG JUST also organised an in-depth discussion with members of its 
Expert  Group  on  EU  Criminal  Policy  (16 September).  These  consultations  were  based  on  a 
dedicated  Commission  questionnaire  that  raised  questions  on  the  offences,  penalties, 
jurisdiction  rules,  and  provisions  on  cross-border  cooperation  to  be  included  in  the  future 
Directive. 

 

Collection and use of expertise 

Following  Russia’s  military  aggression  against  Ukraine,  the  Commission  set  up  the  ‘Freeze 
and  Seize’  Task  Force  at  the  beginning  of  March  2022.  Its  aim  is  to  ensure  coordination 
among  Member  States  in  the  enforcement  of  Union  restrictive  measures  on  Russian  and 
Belarusian  listed  individuals  and  companies,  and  to  explore  the  interplay  between  Union 
restrictive measures and criminal law measures. These exchanges of views included meetings 
with  national  competent  authorities for the implementation  of  restrictive  measures, Europol, 
Eurojust, and the Genocide Network31, the Secretariat of which is hosted by Eurojust. 

A  specific  subgroup  of  the  ‘Freeze  and  Seize’  Task  Force  is  dedicated  to  strengthening  the 
implementation  of  Union  restrictive  measures.  In  particular,  it  tackles  questions  raised  by 
national  authorities and explores possible ways to identify assets  proactively.  Member State 
national competent authorities participate in this subgroup. During the exchanges of views in 
the  context  of  this  subgroup,  references  were  made  on  several  occasions  to  difficulties  in 
holding  accountable  individuals  and  legal  persons  involved  in  the  violation  of  Union 
restrictive  measures.  Participants  in  such  exchanges  also  argued  in  favour  of  a  common 
criminal law approach to the violation of Union restrictive measures. 

31 

Eurojust,  Genocide  Network,  see  https://www.eurojust.europa.eu/judicial-cooperation/practitioner-
networks/genocide-network?msclkid=de6a1668cf6011eca5681e93e0033be2. 

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Evidence  of  the  need  for  such  a  common  approach  is  specifically  provided  for  in  the 
Genocide  Network  report  of  December  202132.  This  report  highlights  the  need  for  the 
criminalisation  of  the  violation  of  Union  restrictive  measures  to  ensure  that  individuals  or 
legal persons responsible for such violations are held accountable33. It furthermore concludes 
that ‘prosecuting sanctions violations can offer a safety net to avoid impunity’, especially  in 
the context of core international crimes34. 

Furthermore,  discussions  within the  ‘Freeze  and  Seize’  Task  Force  on  the  exchange  of  best 
practices on  both criminal investigations  and confiscation demonstrated the importance of  a 
proactive approach and coordination among authorities responsible for the implementation of 
Union  restrictive  measures.  Financial  intelligence  units,  law  enforcement  authorities  and 
customs  authorities,  along  with  international  partners,  civil  society  and  investigative 
journalists, should cooperate and exchange information in order to obtain the leads that will 
enable law enforcement authorities to start an investigation. 

The Commission  also  consulted its Expert Group on  EU Criminal  Policy35   on 13 May  and 
16 September 2022.  The group  generally welcomed the idea of harmonising definitions and 
penalties  at  EU  level  and  provided  specific  input  as  regards  offences,  penalties,  jurisdiction 
rules and cross-border cooperation. 

 

Impact assessment 

This  proposal  for  a  Directive  aims  at  approximating  the  definition  of  criminal  offences  and 
penalties in the area of the violation of Union restrictive measures. It follows the adoption of 
Council Decision (EU) 2022/2332 on identifying the violation of Union restrictive measures 
as an area of crime that meets the specified criteria laid down in Article 83(1) of the Treaty on 
the Functioning of the European Union36. 

The  European  Commission  proposal  for  a  Council  Decision,  presented  on  25 May37,  was 
accompanied  by  a  Communication  Towards  a  Directive  on  criminal  penalties  for  the 
violation  of  Union  restrictive  measures38.  Because  of  the  urgent  need  to  hold  accountable 
individuals  and  legal  persons  involved  in  the  violation  of  Union  restrictive  measures,  the 
annex  to  this  Communication  already  outlined  the  main  elements  that  a  future  Directive  on 
criminal penalties for the violation of Union restrictive measures could contain. 

Council Decision (EU) 2022/2332 on identifying the violation of Union restrictive measures 
as an area of crime that meets the specified criteria laid down in Article 83(1) of the Treaty on 

32 

33 
34 
35 

36 
37 

38 

Genocide  Network,  Expert  Report  on  Prosecution  of  sanctions  (restrictive  measures)  violations  in 
national jurisdictions: a comparative analysis, 2021. 
Idem, p. 4. 
Idem, p. 26. 
European Commission, Expert Group on EU Criminal Policy, https://ec.europa.eu/transparency/expert-
groups-register/screen/expert-
groups/consult?do=groupDetail.groupDetail&groupID=2760&msclkid=56005123cfaf11ec8de3edb643
537b59. 
Supra n. 30. 
European  Commission,  Proposal  for  a  Council  Decision  on  adding  the  violation  of  Union  restrictive 
measures  to  the  areas  of  crime  laid  down  in  Article 83(1)  of  the  Treaty  on  the  Functioning  of  the 
European Union, COM(2022) 247 of 25.5.2022. 
Communication from the European Commission to the European Parliament and the Council, Towards 
a  Directive  on  criminal penalties  for  the  violation  of  Union  restrictive  measures,  COM(2022)  249 of 
25.5.2022. 

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the  Functioning  of  the  European  Union  also  underlines  the  urgency  of  the  adoption  of 
secondary legislation39. 

Given these circumstances, no impact assessment was conducted. 

 

Fundamental rights 

This  Directive  respects  fundamental  rights  and  observes  the  principles  laid  down  in  the 
Charter of Fundamental Rights of the European Union (the Charter)40. Notably, the Directive 
ensures  compliance  with  the  following  provisions  of  the  Charter:  the  right  to  liberty  and 
security (Article 6); the right to protection of personal data (Article 8); the freedom to conduct 
a business (Article 16); the right to property (Article 17); the right to an effective remedy and 
to a fair trial (Article 47); the presumption of innocence and right of defence (Article 48); the 
principles of legality and proportionality of criminal offences and penalties (Article 49); and 
the  right  not  to  be  tried  or  punished  twice  in  criminal  proceedings  for  the  same  offence 
(Article 50). 

This Directive will have to be transposed into national law respecting fundamental rights. In 
particular,  Member  States  should  ensure  that  the  imposition  of  criminal  and  administrative 
penalties  respects  the  principles  of  the  Charter,  including  the  privilege  against  self-
incrimination, the right to remain silent and the prohibition of being tried or punished twice in 
criminal  proceedings  for  the  same  offence.  Member  States  should  also  ensure  that  the 
procedural  rights  of  suspected  or  accused  persons  in  criminal  proceedings  are  respected.  In 
this  regard,  the  obligations  under  this  Directive  are  without  prejudice  to  Member  States’ 
obligations under EU law on procedural rights in criminal proceedings. Finally, this Directive 
will  have  to  be  transposed  without  prejudice  to  the  applicable  rules  on  reporting, 
confidentiality and professional secrecy. 

4. 

BUDGETARY IMPLICATIONS 

The  current  proposal  has  negligible  budgetary  implications  for  Member  States  and  for  the 
Commission.  Specific  information  on  the  financial  implications  for  the  Commission  can  be 
found in the legislative financial statement attached to this legislative package. 

As provided for in Article 19(1) and (4) of the current proposal, the Commission will have to 
undertake  a  number  of  reporting  obligations.  Two  years  after  the  end  of  the  transposition 
period, the Commission will have to produce a report on how Member States transposed the 
Directive. Five years after the end of the transposition period, the Commission must produce a 
study on the Directive’s effectiveness to evaluate its added value. The latter will only happen 
after the end of the current multiannual financial framework. 

The first report relates to transposition of the Directive by Member States. The second report 
that  the  Commission  has  to  produce  is  a  study  that  will  assess  the  effectiveness  of  the 
Directive, with respect to a specified series of indicators.  

In addition, the legislative financial statement details the costs for the collection and analysis 
of statistics on the criminal offences referred to in Articles 3, 4 and 5. Member States have to 

39 

40 

Supra n. 30, recital 24: ‘In order to enable, as a matter of urgency, the adoption of secondary legislation 
establishing  minimum  rules  on  the  definition  of,  and  the  penalties  for,  the  crime  of  violating  Union 
restrictive measures, this Decision should enter into force as a matter of urgency on the day following 
that of its publication in the Official Journal of the European Union’. 
Charter of Fundamental Rights of the European Union, OJ C 326, 26.10.2012, p. 391-407. 

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submit these statistics to the Commission on an annual basis, in accordance with Article 19(2) 
and (3) of the current proposal. 

Besides  the  costs  for  the  Commission,  the  proposal  will  also  have  limited  financial 
implications for Member States. These financial implications can be divided into three parts. 

(1)  As provided for in Article 15 of the current proposal, Member States will have 
to  ensure  that  effective  investigative  tools  are  made  available  for  the 
investigation of offences related to the violation of Union restrictive measures. 

(2) 

In accordance with Article 13 of the current proposal, Member States will have 
to ensure coordination and cooperation at strategic and operational level among 
all  their  competent  authorities  involved  in  the  prevention,  investigation  and 
prosecution of offences related to the violation of Union restrictive measures. 

(3)  Member States will face some costs related to the above-mentioned obligation 
to submit, on an annual basis, statistics on the criminal offences referred to in 
Articles 3, 4 and 5. However, insufficient data are available to enable an exact 
cost estimate of the related costs. 

5. 

 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

Member States will have six months after the entry into force of the Directive to transpose it 
into national legislation. Two years after the end of this transposition period, the Commission 
will have to produce a report on how Member States transposed the Directive. Five years after 
the end of the transposition period, the Commission must produce a study on the Directive’s 
effectiveness to evaluate its added value. 

 

Detailed explanation of the specific provisions of the proposal 

Article 1: Subject matter 

This  provision  sets  out  the  purpose  of  the  Directive,  in  particular  its  aim  of  ensuring  the 
effective application of Union restrictive measures. 

Article 2: Scope and definitions 

This provision sets out the scope of the Directive. It applies to violations of Union restrictive 
measures  adopted  by  the  EU  on  the  basis  of  Article 29  TEU  or  Article 215  TFEU.  Such 
measures include the freezing of funds and economic resources, prohibitions on making funds 
and  economic  resources  available  and  prohibitions  on  entry  into,  or  transit  through  the 
territory  of  a  Member  State  of  the  European  Union,  as  well  as  sectoral  economic  measures 
and  arms  embargoes.  Furthermore,  this  provision  provides  definitions  of  terms  used  in  the 
Directive,  including  of  the  ‘designated  person,  entity  or  body’,  ‘funds’  and  ‘economic 
resources’. 

Article 3: Violation of Union restrictive measures 

This provision describes the criminal offences covered by this Directive.  The offences cover 
violations of the prohibitions and restrictions contained in Union restrictive measures, conduct 
intended  to  circumvent  Union  restrictive  measures41,  and  breaching  conditions  under 

41 

See Article 8 and 9 of Regulation (EU) No 269/2014, as amended. 

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authorisations  granted  by  competent  authorities  to  conduct  certain  activities  otherwise 
prohibited by the restrictive measures. These offences  are not  to  be  understood  as  imposing 
obligations on natural persons contrary to the  right not to incriminate oneself and to remain 
silent as set out in the Charter and Directive (EU) 2016/34342. In addition, they do not affect 
the applicable rules on reporting, confidentiality and professional secrecy.   

Moreover, activities which concern the provision  of  goods  and services of daily use for the 
personal use of designated natural persons, such as food and healthcare products and services, 
or of petty cash, where it is clearly limited to fulfilling the basic human needs of such persons 
and their dependent family members are excluded from criminalisation. The failure to report 
such  activities  are  also  excluded  from  criminalisation.  In  addition,  the  delivery  of 
humanitarian aid to persons in need is excluded from criminalisation. Such humanitarian aid 
must be provided strictly in accordance with international humanitarian law and can  notably 
consist  of  food  and  nutrition,  shelter,  health  care,  water  and  sanitation.  Furthermore,  in 
implementing  this  Directive,  Member  States  should  take  into  account  that  International 
Humanitarian  Law,  the  law  of  armed  conflict,  requires  that  restrictive  measures  should  not 
prevent  the  delivery  of  humanitarian  aid  in  line  with  principles  of  impartiality,  humanity, 
neutrality and independence.43 

Certain  violations  of  Union  restrictive  measures  also  constitute  a  criminal  offence  when 
committed with serious negligence. In particular, professionals, such as in legal, financial and 
trade  services,  should  exercise  due  diligence  to  prevent  any  violation  of  Union  restrictive 
measures. 

Article 4: Inciting, aiding and abetting, and attempt 

Article 4 criminalises inciting, and aiding and abetting, the commission of criminal offences 
referred  to  in  Article 3.  Also,  attempts  to  commit  criminal  offences  listed  in  Articles  3  are 
criminalised. 

Article 5: Criminal penalties for natural persons 

Article 5 provides minimum standards to ensure that the offences referred to in Articles 3 and 
4  are  punishable  by  effective,  proportionate  and  dissuasive  criminal  penalties.  The  proposal 
requires that Member States establish specific sanction levels and types for criminal offences 
related to the violation of Union restrictive measures. The categorisation proposed reflects the 
seriousness  of  the  offences.  A  monetary  threshold  of  EUR 100 000  is  set  as  a  way  to 
distinguish  more  serious  offences  that  should  be  punishable  by  a  maximum  term  of 
imprisonment  of  at  least  5  years.  As  mentioned,  currently,  in  14  Member  States,  the 
maximum length of imprisonment is between 2 and 5 years. In 8 Member States, maximum 
sentences between 8 and 12 years are possible44. Additional penalties or measures should also 
be available in criminal proceedings against natural persons. They should include fines. 

42 

43 

44 

Directive  (EU)  2016/343  of  the  European  Parliament  and  of  the  Council  of  9  March  2016  on  the 
strengthening  of  certain  aspects  of  the  presumption  of  innocence  and  of  the  right  to  be present  at  the 
trial in criminal proceedings (OJ L 65, 11.3.2016, p. 1). 
Commission notice, Commission guidance on the provision of humanitarian aid in compliance with EU 
restrictive measures (sanctions), C (2022) 4486 of 30.06.2022. 
Genocide Network, Section 5.2., p. 23 

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Article 6: Liability of legal persons 

Article 6 contains obligations to ensure the liability of legal persons for offences referred to in 
Articles 3 and 4 where such offences have been committed for their benefit. This Article also 
provides that Member States should make sure that legal persons can be held accountable for 
a  lack  of  supervision  and  control  that  has  made  possible  the  commission  of  an  offence 
referred to in Article 3 and 4 for the benefit of the legal person. Furthermore, the liability of 
the legal person should not exclude criminal proceedings against natural persons. 

Article 7: Penalties for legal persons 

Article 7  sets  out  penalties  applicable  to  legal  persons  involved  in  the  criminal  offences 
covered  by  this  proposal.  In  particular,  Member  States  are  required  to  take  the  necessary 
measures to ensure that a legal person held liable pursuant to Article 6 is subject to effective, 
proportionate  and  dissuasive  penalties,  including:  criminal  or  non-criminal  fines;  exclusion 
from  access  to  public  funding,  including  tender  procedures,  grants  and  concessions; 
disqualification  from  the  practice  of  business  activities;  withdrawal  of  permits  and 
authorisations to pursue activities that have resulted in committing the offence; placing under 
judicial supervision; judicial winding up; and  closure of establishments  that  have been used 
for committing the criminal offence. 

In  addition,  this  Article  provides that Member States should take the necessary measures to 
ensure that legal persons that benefit from the commission by others of offences in violation 
of Union restrictive measures are punishable by fines, the maximum limit of which should be 
not less than 5 per cent of the total worldwide turnover of the legal person in the business year 
preceding the fining decision. The liability of legal persons does not exclude the possibility of 
criminal  proceedings  against  natural  persons  who  are  the  perpetrators  of  criminal  offences 
specified in Articles 3 and 4. 

Article 8: Aggravating circumstances 

Article 8 sets out the aggravating circumstances to be taken into account when  penalties are 
applied  to  an  offence  referred  to  in  Articles  3  and  4.  Any  of  the  following  circumstances 
should  be  considered  an  aggravating  circumstance:  the  offence  was  committed  in  the 
framework  of  a  criminal  organisation  within  the  meaning  of  Council  Framework  Decision 
2008/841/JHA45; the offence was committed by a professional service provider in violation of 
their  professional  obligations;  the  offence  was  committed  by  a  public  official  when 
performing their duties; and the offence was committed by another person when performing a 
public function. 

Article 9: Mitigating circumstance 

Article 9 sets out a mitigating circumstance to be considered when penalties are applied to an 
offence  referred  to  in  Articles  3  and  4.  This  would  be  where  the  offender  provides  the 
administrative  or  judicial  authorities  with  information  they  would  not  otherwise  have  been 
able to obtain, helping them to: (i) identify or bring to justice the other offenders; and/ or (ii) 
find evidence. 

45 

Council Framework Decision 2008/841/JHA of 24 October 2008 on the fight against organised crime 
OJ L 300, 11.11.2008, p. 42-45. 

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Article 10: Freezing and confiscation 
Article  10  clarifies  the  concept  of  ‘proceeds’46  specifically  in  situations  in  which    the 
designated  person,  entity  or  body    commits  or  participates  in  the  specific  circumvention 
offences under Article 3(2)(h)(i) and (ii). The proportionality of confiscation will have to be 
observed in each individual case. 

Article 11: Jurisdiction rules 

Article 11  lays  down  provisions  on  jurisdiction  to  make  sure  that  Member  States  establish 
jurisdiction for offences covered by the proposal. Member States should exercise jurisdiction 
over offences committed by legal persons established in their territory and where the offences 
are committed for the benefit of a legal person in respect of any business done in whole or in 
part within the EU. In particular, the 2021 report of the Genocide Network mentions several 
relevant cases47 of companies established in a Member State violating restrictive measures in 
non-EU countries. Furthermore, the establishment of jurisdiction over legal persons in respect 
of any business done in whole or in part within the EU is of particular importance to tackle 
the  violation  of  Union  restrictive  measures.  This  will  enable  Member  States  to  prosecute 
violation  with  an  EU  connection  that  is  conducted  via  non-EU  countries  and/or  by  non-EU 
persons, e.g. exports from the EU to a targeted destination or end-user, or transfers of assets 
from the EU to a listed person. 

Article 12: Limitation periods 

Article 12  lays  down  provisions  on  limitation  periods  in  order  to  allow  the  competent 
authorities to investigate, prosecute and adjudicate criminal offences covered by this proposal 
during a certain time period. 

Article 13:  Coordination  and  cooperation  between  competent  authorities  within  a 

Member State 

This provision requires Member States to ensure coordination and cooperation at strategic and 
operational  level  among  all  their  competent  authorities  involved  in  the  prevention, 
investigation  and  prosecution  of  offences  related  to  the  violation  of  Union  restrictive 
measures. 

Article 14: Reporting of offences and protection of persons who report offences related 

to the violation of Union restrictive measures or who assist the investigation 

This provision concerns the protection of whistle-blowers reporting information or providing 
evidence to a criminal investigation relating to the violation of Union restrictive measures. 

Article 15: Investigative tools 

This  provision  lays  down  that  effective  investigative  tools,  such  as  those  that  are  used  in 
organised  crime  or  other  serious  crime  cases,  shall  also  be  available  for  investigating  or 
prosecuting offences referred to in Articles 3 and 4. 

46 

47 

Proposal  for  a  Directive  of  the  European  Parliament  and  of  the  Council  on  asset  recovery  and 
confiscation,  COM (2022) 245 of 25.5.2022, Article 3(1): ‘proceeds’  means any economic advantage 
derived directly or indirectly from a criminal offence consisting of any form of property, and including 
any subsequent reinvestment or transformation of direct proceeds and any valuable benefits.’ 
Genocide  Network,  Expert  Report  on  Prosecution  of  sanctions  (restrictive  measures)  violations  in 
national jurisdictions: a comparative analysis, 2021 p. 14-20. 

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Article 16:  Cooperation  between  Member  States,  the  Commission,  Europol,  Eurojust 

and the European Public Prosecutor’s Office 

This  provision  requires  Member  States  authorities,  Europol,  Eurojust,  the  European  Public 
Prosecutor’s  Office,  and  the  Commission,  within  their  respective  competence,  to  cooperate 
with  each  other  in  the  fight  against  criminal  offences  referred  to  in  Articles 3  and  4.  The 
competent authorities of the Member States should also share information on practical issues. 

Article 17: Amendments to Directive (EU) 2018/1673 

The  provision  amends  Article 2  of  Directive  (EU)  2018/1673  on  combatting  money 
laundering  by  criminal  law48  by  defining  the  violation  of  Union  restrictive  measures  as 
“criminal  activities”.  As  a  consequence,  money  laundering  as  described  in  Article  3  of 
Directive (EU) 2018/1673 involving property derived from the criminal offences covered by 
this Directive constitutes a criminal offence. 

Articles 18-21 

These  Articles  contain  further  provisions  on  transposition  by  Member  States,  reporting  by 
Member States, evaluation and reporting by the Commission, entry into force, and addressees 
of  this  Directive.  Given  the  urgent  need  to  hold  accountable  individuals  and  legal  persons 
involved in the violation of Union restrictive measures, Member States should bring into force 
the  laws,  regulations  and  administrative  provisions  necessary  to  comply  with  this  Directive 
within 6 months after the entry into force of this Directive. 

48 

Directive  (EU)  2018/1673  of  the  European  Parliament  and  of  the  Council  of  23 October  2018  on 
combating money laundering by criminal law, PE/30/2018/REV/1, OJ L 284, 12.11.2018, p. 22-30. 

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2022/0398 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the definition of criminal offences and penalties for the violation of Union restrictive 
measures 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 83(1) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

In order to ensure the effective application of Union restrictive measures, the integrity 
of the internal market within the Union, and to achieve a high level of security within 
the Area of Freedom, Security and Justice, it is necessary to establish minimum rules 
concerning  the  definition  of  criminal  offences  and  penalties  with  regard  to  the 
violation of those Union restrictive measures. 

Union  restrictive  measures,  such  as  measures  concerning  the  freezing  of  funds  and 
economic  resources,  the  prohibitions  on  making  funds  and  economic  resources 
available and the prohibitions on entry into or transit through the territory of a Member 
State, as well as sectoral economic measures and arms embargoes, are an essential tool 
for the promotion of the objectives of the Common Foreign and Security Policy, as set 
out in Article 21 of the Treaty on European Union (‘TEU’). Those objectives include 
safeguarding  the  Union’s  values,  security,  independence  and  integrity,  consolidating 
and  supporting  democracy,  the  rule  of  law,  human  rights  and  the  principles  of 
international  law  and  maintaining  international  peace,  preventing  conflicts  and 
strengthening international security in line with the aims and principles of the United 
Nations Charter.  

To ensure the effective application of Union restrictive measures, it is necessary that 
Member States have effective, proportionate and dissuasive penalties in place  for the 
violation of those Union restrictive measures, including obligations, such as reporting, 
established therein. It is also necessary that those penalties address the circumvention 
of Union restrictive measures.  

The  effective  application  of  Union  restrictive  measures  calls  for  common  criminal 
definitions  of  conduct  infringing  Union  restrictive  measures.  Member  States  should 
ensure that this conduct constitutes a criminal offence when committed with intent as 
well  as  with  serious  negligence,  in  case  the  natural  or  legal  person  knew  or  should 
have known, that their conduct would infringe Union restrictive measures. 

(5) 

The effective application of Union restrictive measures also calls for common criminal 
definitions of conduct circumventing a Union restrictive measure. 

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(6) 

(7) 

(8) 

(9) 

Persons,  entities  and  bodies,  which  are  designated  individually  in  Union  restrictive 
measures  and  subject  to  those  Union  restrictive  measures,  may  often  be  involved  as 
instigators  and  accomplices.  For  instance,  the  practice  by  designated  persons  and 
entities  of  transferring  funds,  property  or  economic  resources  to  a  third  party  with  a 
view to circumvent Union restrictive measures is increasingly widespread. Therefore, 
this conduct is covered by the circumvention offence approximated by this Directive. 

Legal  professionals,  as  defined  by  the  Member  States,  should  be  subject  to  this 
Directive,  including  the  obligation  to  report  the  violation  of  Union  restrictive 
measures,  when  providing  services  in  the  context  of  professional  activities,  such  as 
legal,  financial  and  trade  services.  Experience  shows  that  there  is  a  clear  risk  of  the 
services of those legal professionals being misused for the purpose of violating Union 
restrictive  measures.  There  should,  however,  be  exemptions  from  any  obligation  to 
report information which is obtained in strict connection with judicial, administrative 
or arbitral proceedings, whether before, during or after judicial proceedings, or in the 
course  of  ascertaining  the  legal  position  of  a  client.  Therefore,  legal  advice  in  those 
circumstances should remain subject to the obligation of professional secrecy, except 
where  the  legal  professional  is  taking  part  in  the  violation  of  Union  restrictive 
measures, the legal advice is provided for the purposes of violating Union restrictive 
measures, or the legal professional knows that the client is seeking legal advice for the 
purposes  of  violating  Union  restrictive  measures.  Knowledge  can  be  inferred  from 
objective factual circumstances. 

The  effective  application  of  Union  restrictive  measures  furthermore  calls  for  a 
common criminal law definition of conduct breaching conditions under authorisations 
granted by competent authorities to conduct certain activities, which in the absence of 
such an authorization are prohibited or restricted under a Union restrictive measure. 

It  is  appropriate  to  exclude  from  the  criminalisation  activities  which  concern  the 
provision of goods and services of daily use for the personal use of designated natural 
persons, such as food and healthcare products and services, or of petty cash, where it is 
clearly limited to fulfilling the basic human needs of such persons and their dependent 
family  members.  The  failure  to  report  such  activities  should  also  be  excluded  from 
criminalisation.  In  addition,  it  is  appropriate  to  exclude  from  criminalisation  the 
delivery  of  humanitarian  aid  to  persons  in  need.  Such  humanitarian  aid  must  be 
provided  strictly  in  accordance  with  international  humanitarian  law  and  can  notably 
consist of food and nutrition, shelter, health care, water and sanitation. Furthermore, in 
implementing 
that 
International  Humanitarian  Law,  the  law  of  armed  conflict,  requires  that  restrictive 
measures should not prevent the delivery of humanitarian aid in line with principles of 
impartiality, humanity, neutrality and independence. 

this  Directive,  Member  States  should 

into  account 

take 

(10)  Penalties  for  the  offences  should  be  effective,  dissuasive  and  proportionate.  To  this 
end, minimum levels for the maximum term of imprisonment should be set for natural 
persons.  Additional  penalties  or  measures  should  also  be  available  in  criminal 
proceedings. They should include fines, taking into account that the violation of Union 
restrictive measures is mostly motivated by economic considerations. 

(11)  Given that legal persons are also subject to Union restrictive measures, legal persons 
should  also  be  held  criminally  liable  for  offences  related  to  the  violation  of  Union 
restrictive  measures  according  to  this  Directive.  Member  States  whose  national  law 
does  not  provide  for  the  criminal  liability  of  legal  persons  should  ensure  that  their 

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administrative sanctioning systems provide for effective, dissuasive and proportionate 
penalty types and levels. 

(12)  A  further  approximation  and  effectiveness  of  level  of  penalties  imposed  in  practice 
should be fostered through common aggravating circumstances that reflect the severity 
of  the  crime  committed.  The  notion  of  aggravating  circumstances  should  be 
understood either as facts allowing the  national judge or court to pronounce a higher 
sentence  for  the  same  offence  than  the  one  incurred  without  these  facts,  or  as  the 
possibility of retaining several offences cumulatively in order to increase the level of 
the penalty. Member States should provide for the possibility of at least one of these 
aggravating  circumstances  in  accordance  with  applicable  rules  established  by  their 
legal  system  on  aggravating  circumstances.  In  any  case,  it  should  remain  within  the 
discretion  of  the  judge  or  the  court  to  determine  whether  to  increase  the  sentence, 
taking into account all the circumstances of the individual case. 

(13)  Member  States  should  also  ensure  that  in  situations  where  the  offender  provides  the 
competent  authorities  with  information  they  would  not  otherwise  have  been  able  to 
obtain, helping them to identify or bring to justice other offenders or to find evidence, 
such conduct may be regarded as mitigating circumstance. 

(14)  The  freezing  of  funds  and  of  economic  resources  imposed  by  Union  restrictive 
measures  is  of  an  administrative  nature.  As  such  it  should  be  distinguished  from 
freezing measures of a criminal nature referred to in Directive (EU) […/…] [Directive 
on asset recovery and confiscation]. 

(15)  There is a need to clarify the concept of proceeds specifically in situations in which the 
designated  person,  entity  or  body  commits  or  participates  in:  (i)  concealing  funds  or 
economic resources owned, held, or controlled by a designated person, entity or body, 
which should be frozen in accordance with a Union restrictive measure, by the transfer 
of those funds, or economic resources to a third party; or (ii) concealing the fact that a 
person,  entity  or  body  subject  to  restrictive  measures  is  the  ultimate  owner  or 
beneficiary  of  funds  or  economic  resources,  through  the  provision  of  false  or 
incomplete  information.  In  those  circumstances,  as  a  consequence  of  the  conduct  of 
concealing,  the  designated  person,  entity  of  body  may  continue  to  access  and  make 
full  use  or  dispose  of  the  funds  or  economic  resources  subject  to  Union  restrictive 
measures  which  have  been  concealed.  Such  funds  or  economic  resources  should 
therefore  be  considered  as  proceeds  of  crime  for  the  purposes  of  Directive  (EU) 
[…/…]  [Directive  on  asset  recovery  and  confiscation],  it  being  understood  that  the 
proportionality  of  confiscation  of  such  proceeds  will  have  to  be  observed  in  each 
individual case. 

(16)  Given, in particular, the global activities of the perpetrators of illegal conduct covered 
by  this  Directive,  together  with  the  cross-border  nature  of  the  offences  and  the 
possibility of cross-border investigations, Member States should establish jurisdiction 
in order to counter such conduct effectively. 

(17)  Member  States  should  lay  down  rules  concerning  limitation  periods  necessary  to 
enable them to counter offences related to the violation of Union restrictive measures 
effectively,  without  prejudice  to  national  rules  that  do  not  set  limitation  periods  for 
investigation, prosecution and enforcement. 

(18)  To  ensure  an  effective,  integrated  and  coherent  enforcement  system,  Member  States 
should organise internal cooperation and communication between all actors along the 
administrative and criminal enforcement chains. 

EN 

19 

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(19)  To ensure the effective investigation and prosecution of violations of Union restrictive 
measures,  Member  States’  competent  authorities  should  cooperate  through  and  with 
Europol,  Eurojust  and  the  European  Public  Prosecutor’s  Office  (EPPO).  These 
competent  authorities  should  also  share  information  among  each  other  and  with  the 
Commission on practical issues. 

(20)  Whistleblowers can provide valuable information to competent authorities concerning 
past, ongoing or planned violations of Union restrictive measures, including attempts 
to  circumvent  them.  This  information  can  relate,  for  example,  to  facts  concerning 
violations  of  Union  restrictive  measures,  their  circumstances  and  the  individuals, 
companies and third countries involved. Therefore, it should be ensured that adequate 
arrangements  are  in  place  to  enable  such  whistleblowers  to  alert  the  competent 
authorities and to protect them from retaliation. For that purpose, it should be provided 
that  Directive  (EU)  2019/1937  of  the  European  Parliament  and  of  the  Council49  is 
applicable  to  the  reporting  of  violations  of  Union  restrictive  measures  and  to  the 
protection of persons reporting such violations. 

(21)  To ensure the effective investigation and prosecution of violations of Union restrictive  
measures,  those  responsible  for  investigating  or  prosecuting  these  measures  should 
have  the  possibility  of  using  investigative  tools  such  as  those  which  are  used  in 
combating  organised  crime  or  other  serious  crimes.  The  use  of  such  tools,  in 
accordance with national law, should be targeted and take into account the principle of 
proportionality  and  the  nature  and  seriousness  of  the  offences  under  investigation  as 
well as respecting the right to the protection of personal data. 

(22)  An  amendment  to  Directive  (EU)  2018/1673  on  combatting  money  laundering  by 
criminal  law50  should  ensure  that  the  violation  of  Union  restrictive  measures  will  be 
considered a predicate offence for money laundering according to that Directive. 

(23)  The  objectives  of  this  Directive,  namely  to  ensure  common  definitions  of  offences 
related to the violation of Union restrictive measures and the availability of effective, 
dissuasive  and  proportionate  criminal  penalties  for  serious  offences  related  to  the 
violation  of  Union  restrictive  measures  cannot  be  sufficiently  achieved  by  Member 
States  but  can  rather,  by  reason  of  the  scale  and  effects  of  this  Directive,  be  better 
achieved  at  Union  level,  taking  into  account  the  inherent  cross-border  nature  of  the 
violation  of  Union  restrictive  measures  and  their  potential  to  undermine  the 
achievement of the Union objectives to safeguard international peace and security as 
well as to uphold Union common values. Therefore the Union may adopt measures, in 
accordance  with  the  principle  of  subsidiarity  as  set  out  in  accordance  with  Article  5 
TEU. In accordance with the principle of proportionality, as set out in that Article, this 
Directive does not go beyond what is necessary to achieve that objective. 

(24)  This Directive respects the fundamental rights and observes the principles recognised 
in particular by the Charter of Fundamental Rights of the European Union, including 
the  rights  to  liberty  and  security,  the  protection  of  personal  data,  the  freedom  to 
conduct a business, the right to property, the right to an effective remedy and to a fair 
trial, the presumption of innocence and the right of defence including the right not to 
incriminate  oneself  and  to  remain  silent,  the  principles  of  legality,  including  the 

49 

50 

Directive (EU) 2019/1937 of the European Parliament and  of the Council of 23 October 2019 on the 
protection of persons who report breaches of Union law, OJ L 305, 26.11.2019, p. 17–56. 
Directive  (EU)  2018/1673  of  the  European  Parliament  and  of  the  Council  of  23 October  2018  on 
combating money laundering by criminal law, PE/30/2018/REV/1, OJ L 284, 12.11.2018, p. 22-30. 

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(25) 

(26) 

(27) 

(28) 

principle  of  non-retroactivity  of  criminal  penalties  and  proportionality  of  criminal 
offences and penalties, as well as the principle of ne bis in idem. This Directive seeks 
to  ensure  full  respect  for  those  rights  and  principles  and  should  be  implemented 
accordingly. 

In  implementing  this  Directive,  Member  States  should  ensure  that  the  procedural 
rights  of  suspected  or  accused  persons  in  criminal  proceedings  are  observed.  In  this 
regard,  the  obligations  under  this  Directive  should  not  affect  Member  States 
obligations under Union law on procedural rights in criminal proceedings, in particular 
Directives  2010/64/EU51,  2012/13/EU52,  2013/48/EU53,  (EU)  2016/34354,  (EU) 
2016/80055 and (EU) 2016/191956 of the European Parliament and of the Council. 

In  view  of  the  urgent  need  to  hold  individuals  and  legal  persons  involved  in  the 
violation of Union restrictive measures accountable, Member States should bring into 
force the laws, regulations and administrative provisions necessary to comply with this 
Directive within six months after the entry into force of this Directive. 

In  accordance  with  Articles  1  and  2  of  Protocol  No  22  on  the  position  of  Denmark 
annexed to the TEU and to the TFEU, Denmark is not taking part in the adoption of 
this Directive and is not bound by it or subject to its application. 

[non-participation:]  In  accordance  with  Articles  1  and  2  of  Protocol  No  21  on  the 
position of the United Kingdom and Ireland in respect of the area of freedom, security 
and justice, annexed to the TEU and to the TFEU, and without prejudice to Article 4 
of that protocol, Ireland is not taking part in the adoption of this  Directive and is not 
bound by it or subject to its application. 

OR [participation:] In accordance with Article 3 of Protocol No 21 on the position of 
the United Kingdom and Ireland in respect of the area of freedom, security and justice, 
annexed to the TEU and to the TFEU, Ireland has notified [, by letter of…,], its wish 
to take part in the adoption and application of this Directive, 

51 

52 

53 

54 

55 

56 

Directive 2010/64/EU of the European Parliament and of the Council of 20 October 2010 on the right to 
interpretation and translation in criminal proceedings (OJ L 280, 26.10.2010, p. 1). 
Directive 2012/13/EU of the European Parliament and of the Council of 22 May 2012 on the right to 
information in criminal proceedings (OJ L 142, 1.6.2012, p. 1). 
Directive 2013/48/EU of the European Parliament and of the Council of 22 October 2013 on the right of 
access to a lawyer in criminal proceedings and in European arrest warrant proceedings, and on the right 
to have a third party informed upon deprivation of liberty and to communicate with third persons and 
with consular authorities while deprived of liberty (OJ L 294, 6.11.2013, p. 1). 
Directive  (EU)  2016/343  of  the  European  Parliament  and  of  the  Council  of  9  March  2016  on  the 
strengthening  of  certain  aspects  of  the  presumption  of  innocence  and  of  the  right  to  be present  at  the 
trial in criminal proceedings (OJ L 65, 11.3.2016, p. 1). 
Directive (EU) 2016/800 of the European Parliament and of the Council of 11 May 2016 on procedural 
safeguards  for  children  who  are  suspects  or  accused  persons  in  criminal  proceedings  (OJ  L  132, 
21.5.2016, p. 1). 
Directive (EU) 2016/1919 of the European Parliament and of the Council of 26 October 2016 on legal 
aid  for  suspects  and  accused  persons  in  criminal  proceedings  and  for  requested  persons  in  European 
arrest warrant proceedings (OJ L 297 4.11.2016, p. 1). 

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HAVE ADOPTED THIS DIRECTIVE: 

Article 1 

Subject matter 

This Directive establishes minimum rules concerning the definition of criminal offences and 
penalties with regard to the violation of Union restrictive measures. 

Article 2 

Scope and definitions 

(1) 

This  Directive  applies  to  violations  of  Union  restrictive  measures.  Those  Union 
restrictive measures cover:  

(a)  measures concerning the freezing of funds and economic resources;  

(b)  prohibitions on making funds and economic resources available;  

(c) 

prohibitions on entry into, or transit through, the territory of a Member State 

(d) 

sectoral economic and financial measures; and  

(e) 

arms embargoes. 

(2) 

For the purposes of this Directive, the following definitions apply: 

(a) 

(b) 

‘Union restrictive measures’ are restrictive measures adopted by the Union on 
the basis of Article 29 TEU or Article 215 TFEU; 

‘designated  person,  entity  or  body’,  means  those  natural  or  legal  persons, 
entities  or  bodies  subject  to  Union  restrictive  measures  consisting  in  the 
freezing  of  funds  and  economic  resources  and  the  prohibition  to  make  funds 
and economic resources available; 

(c) 

‘funds’ means: 

(i)      cash,  cheques,  claims  on  money,  drafts,  money  orders  and  other 

payment instruments; 

(ii)    deposits  with  financial  institutions  or  other  entities,  balances  on 

accounts, debts and debt obligations; 

(iii)  publicly-  and  privately-traded  securities  and  debt  instruments, 
including  stocks  and  shares,  certificates  representing  securities, 
bonds, notes, warrants, debentures and derivatives contracts; 

(iv)    interest,  dividends  or  other  income  on  or  value  accruing  from  or 

generated by assets; 

(v)    credit,  right  of  set-off,  guarantees,  performance  bonds  or  other 

financial commitments; 

(vi)   letters of credit, bills of lading, bills of sale; 

(vii)  documents  showing  evidence  of  an  interest  in  funds  or  financial 

resources; 

(viii) crypto assets; 

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(d) 

(e) 

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

‘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 
any  other  change  that  would  enable  the  funds  to  be  used,  including  portfolio 
management; 

(f) 

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

Article 3 

Violation of Union restrictive measures 

(1) 

(2) 

Member  States  shall  take  the  necessary  measures  to  ensure  that  the  violation  of  a 
Union  restrictive  measure  constitutes  a  criminal  offence  when  committed 
intentionally and provided it falls in one of the categories defined in paragraph 2. 

For the purposes of this Directive, the following shall be regarded as violation of  a 
Union restrictive measure: 

(a)  making  funds  or  economic  resources  available  to,  or  for  the  benefit  of,  a 
designated  person,  entity  or  body  in  violation  of  a  prohibition  by  a  Union 
restrictive measure; 

(b) 

(c) 

(d) 

(e) 

(f) 

failing to freeze without undue delay funds or economic resources belonging to 
or owned, held or controlled by a designated person, entity or body in violation 
of an obligation to do so imposed by a Union restrictive measure; 

enabling the entry of designated natural persons into the territory of a Member 
State or their transit through the territory of a Member State in  violation of a 
prohibition by a Union restrictive measure; 

entering into transactions with a third State, bodies of a third State, entities and 
bodies owned or controlled by a third State or bodies of a third State, which are 
prohibited or restricted by Union restrictive measures;  

trading  in  goods  or  services  whose  import,  export,  sale,  purchase,  transfer, 
transit or transport is prohibited or restricted by Union restrictive measures, as 
well  as  providing  brokering  services  or  other  services  relating  to  those  goods 
and services; 

providing  financial  activities  which  are  prohibited  or  restricted  by  Union 
restrictive  measures,  such  as  financing  and  financial  assistance,  providing 
investment and investment services, issuing transferrable securities and money 
market 
instruments,  accepting  deposits,  providing  specialised  financial 
messaging  services,  dealing  in  banknotes,  provide  credit  rating  services, 
providing crypto assets and wallets; 

(g)  providing other services which are prohibited or restricted by Union restrictive 
measures,  such  as  legal  advisory  services,  trust  services,  public  relations 
services,  accounting,  auditing,  bookkeeping  and  tax  consulting  services, 

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business  and management  consulting,  IT consulting, public relations services, 
broadcasting, architectural and engineering services; 

(h) 

circumventing a Union restrictive measure by: 

(i)     concealing funds or economic resources owned, held, or controlled 
by a designated person, entity or body,  which should be frozen in 
accordance  with  a  Union  restrictive  measure,  by  the  transfer  of 
those funds, or economic resources to a third party;  

(ii)   concealing the fact that a person, entity or body subject to restrictive 
measures is the ultimate owner or beneficiary of funds or economic 
resources, through the provision of false or incomplete information;  

(iii)    failing  by  a  designated  person,  entity  or  body  to  comply  with  an 
obligation  under  Union  restrictive  measures  to  report  funds  or 
economic  resources  within  the  jurisdiction  of  a  Member  State, 
belonging to, owned, held, or controlled by them;  

(iv)  failing  to  comply  with  an  obligation  under  Union  restrictive 
measures to  provide without  undue delay information on funds or 
economic  resources  frozen  or  information  held  about  funds  and 
economic  resources  within  the  territory  of  the  Member  States, 
belonging  to,  owned,  held  or  controlled  by  designated  persons, 
entities or bodies and which have not been frozen, to the competent 
administrative authorities;  

(v)    failing to cooperate with the competent administrative authorities in 
any  verification  of  information  under  points  (iii)  and  (iv),  upon 
their reasoned request; 

(3) 

(4) 

(5) 

(i) 

breaching  or  failing  to  fulfil  conditions  under  authorizations  granted  by 
competent  authorities  to  conduct  activities,  which  in  the  absence  of  such  an 
authorization are prohibited or restricted under a Union restrictive measure. 

The  conduct  referred  to  in  paragraph  2,  points  (a)  to  (g)  shall  constitute  a  criminal 
offence also if committed with serious negligence. 

Nothing  in  paragraph  2  shall  be  understood  as  imposing  obligations  on  natural 
persons  contrary  to  the  right  not  to  incriminate  oneself  and  to  remain  silent  as 
enshrined in the Charter of Fundamental Rights of the European Union and Directive 
(EU) 2016/343.  

Nothing  in  paragraph  2  shall  be  understood  as  imposing  an  obligation  on  legal 
professionals  to  report  information  which  is  obtained  in  strict  connection  with 
judicial,  administrative  or  arbitral  proceedings,  whether  before,  during  or  after 
judicial  proceedings,  or  in  the  course  of  ascertaining  the  legal  position  of  a  client. 
Legal  advice  in  those  circumstances  shall  be  protected  by  professional  secrecy, 
except where the legal professional is taking part in the violation of Union restrictive 
measures, the legal advice is provided for the purposes of violating Union restrictive 
measures, or the legal professional knows that the client is seeking legal  advice for 
the purposes of violating Union restrictive measures.  

(6) 

Paragraphs 1, 2 and 3 shall not apply to:  

- 

the  provision  of  goods  or  services  of  daily  use  for  the  personal  use  of 
designated natural persons, such as food and healthcare products and services, 

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or of petty cash, where it is clearly limited to fulfilling the basic human needs 
of such persons and their dependent family members,  

- 

- 

to the failure to report such activities;   

to humanitarian aid provided for persons in need. 

Article 4 

(1) 

(2) 

(1) 

(2) 

(3) 

(4) 

Inciting, aiding and abetting, and attempt 

Member States shall take the necessary measures to ensure that inciting, aiding and 
abetting the offences referred to in Article 3 is punishable as a criminal offence. 

Member  States  shall  take  the  necessary  measures  to  ensure  that  the  attempt  to 
commit any of the offences  referred to  in  Article 3 (2), points (a) to  (g),  (h (i), (ii) 
and point (i), is punishable as a criminal offence. 

Article 5 

Criminal penalties for natural persons 

Member States shall ensure that the criminal offences referred to in Articles 3 and 4 
are punishable by effective, proportionate and dissuasive criminal penalties. 

Member States shall take the necessary measures to ensure that the criminal offences 
referred  to  in  Article 3  are  punishable  by  a  maximum  penalty  which  provides  for 
imprisonment. 

Member States shall take the necessary measures to ensure that the criminal offences 
referred to in Article 3(2), points (h)(iii), (iv) and (v), are punishable by a maximum 
penalty of at  least  one  year of imprisonment when they involve funds or economic 
resources  of  a  value  of  at  least  EUR  100 000.  Member  States  shall  ensure  that  the 
threshold  of  EUR  100 000  or  more  may  also  be  met  through  a  series  of  linked 
offences referred to in Article 3(2), points (h)(iii), (iv) and (v), when committed by 
the same offender. 

Member States shall take the necessary measures to ensure that the criminal offences 
referred  to  in  Article 3(2),  points  (a)  to  (g),  (h)(i)  and  (ii),  and  point  (i),  are 
punishable by a maximum penalty of at least five years of imprisonment when they 
involve  funds  or  economic  resources  of  a  value  of  at  least  EUR  100 000.  Member 
States  shall  ensure  that  the  threshold  of  EUR  100  000  or  more  may  also  be  met 
through a series of linked offences referred to in Article 3(2), points (a) to (g), (h)(i) 
and (ii), and point (i), by the same offender. 

(5) 

Member States shall take the necessary measures to ensure that natural persons who 
have  committed  the  offences  referred  to  in  Articles  3  and  4  may  be  subject  to 
additional penalties. Those additional penalties shall include fines. 

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Article 6 

Liability of legal persons 

Member States shall take the necessary measures to ensure that legal persons can be 
held liable for offences referred to in Articles 3 and 4 committed for their benefit by 
any person, acting either individually or as part of an organ of the legal person, and 
having a leading position within the legal person, based on: 

(a) 

a power of representation of the legal person; 

(b) 

an authority to take decisions on behalf of the legal person;  

(c) 

an authority to exercise control within the legal person. 

Member  States  shall  also  take  the  necessary  measures  to  ensure  that  legal  persons 
can be held liable where the lack of supervision or control by a person referred to in 
paragraph 1 of this Article has made possible the commission, by a person under its 
authority, of any of the criminal offences referred to in Article 3 and 4 for the benefit 
of that legal person. 

Liability of legal persons under paragraphs 1 and 2 of this Article shall not exclude 
the possibility of criminal proceedings against natural persons who are perpetrators, 
inciters or accessories in the offences referred to in Articles 3 and 4. 

Article 7 

Penalties for legal persons 

Member States shall take the necessary measures to ensure that a legal person held 
liable  pursuant  to  Article 7  is  subject  to  effective,  proportionate  and  dissuasive 
penalties,  which  shall  include  criminal  or  non-criminal  fines,  exclusion  from 
entitlement  to  public  benefits  or  aid,  exclusion  from  access  to  public  funding, 
including tender procedures, grants and concessions and may include other penalties, 
such as: 

(a) 

disqualification from the practice of business activities; 

(b)  withdrawal  of  permits  and  authorisations  to  pursue  activities  which  have 

resulted in committing the offence; 

(c) 

placing under judicial supervision; 

(d) 

judicial winding-up; 

(e) 

closure  of  establishments,  which  have  been  used  for  committing  the  criminal 
offence. 

Member States shall take the necessary measures to ensure that for legal persons held 
liable pursuant to Article 7 the criminal offences referred to in Article 3(2), points (h) 
(iii) to (v), are punishable by fines, the maximum limit of which should be not less 
than 1 percent of the total worldwide turnover of the legal person in the business year 
preceding the fining decision. 

Member States shall take the necessary measures to ensure that for legal persons held 
liable pursuant to Article 7 the criminal offences referred to in Article 3(2), points (a) 
to  (f),  (h)(i)  and  (ii),  and  point  (i),  are  punishable  by  fines,  the  maximum  limit  of 

(1) 

(2) 

(3) 

(1) 

(2) 

(3) 

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which should be not less than 5 percent of the total worldwide turnover of the legal 
person in the business year preceding the fining decision. 

Article 8 

Aggravating circumstances 

In so far as the following circumstances do not already form part of the constituent elements 
of the criminal offences referred to in Articles 3 and 4, Member States shall take the necessary 
measures  to  ensure  that  one  or  several  of  the  following  circumstances  may  be  regarded  as 
aggravating circumstances: 

(a) 

(b) 

(c) 

(d) 

the  offence  was  committed  in  the  framework  of  a  criminal  organisation  within  the 
meaning of Council Framework Decision 2008/841/JHA57; 

the  offence  was  committed  by  a  professional  service  provider  in  violation  of  his 
professional obligations; 

the offence was committed by a public official when performing his or her duties; 

the offence was committed by another person when performing a public function. 

Article 9 

Mitigating circumstance 

Provided  this  is  not  already  an  obligation  under  Union  restrictive  measures,  Member  States 
shall  take  the  necessary  measures  to  ensure  that,  in  relation  to  the  offences  referred  to  in 
Articles 3 and 4, the following may be regarded as a mitigating circumstance: 

(a) 

(b) 

the  offender  provides  the  competent  authorities  with  information  they  would  not 
otherwise have been able to  obtain, helping them  to  identify or bring to justice  the 
other offenders;  

the  offender  provides  the  competent  authorities  with  information  they  would  not 
otherwise have been able to obtain, helping them to find evidence. 

Article 10 

Freezing and confiscation 

Member States shall take the necessary measures to ensure that funds or economic resources 
subject to Union restrictive measures in respect of which the designated person, entity or body 
commits  or  participates  in  an  offence  referred  to  in  Article  3(2),  points  (h)(i)  or  (ii),  are 
considered  as  ‘proceeds’  of  crime  for  the  purposes  of  Directive  (EU)  […/…]  [Directive  on 
asset recovery and confiscation].  

57 

Council Framework Decision 2008/841/JHA of 24 October 2008 on the fight against organised crime 
OJ L 300, 11.11.2008, p. 42-45. 

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Article 11 

Jurisdiction rules 

(1) 

Each  Member  State  shall  take  the  necessary  measures  to  establish  its  jurisdiction 
over the criminal offences referred to in Articles 3 and 4 where: 

(a) 

(b) 

the  criminal  offence  was  committed  in  whole  or  in  part  within  its  territory, 
including its airspace; 

the  criminal  offence  was  committed  on  board  of  any  aircraft  or  any  vessel 
under the jurisdiction of a Member State; 

(c) 

the offender is one of its nationals or habitual residents; 

(d) 

the offender is one of its officials who acts in his or her official duty; 

(e) 

(f) 

the offence is committed for the benefit of a legal person which is established 
on its territory; 

the  offence  is  committed  for  the  benefit  of  a  legal  person  in  respect  of  any 
business done in whole or in part on its territory. 

Where an offence referred to in Articles 3 and 4 falls within the jurisdiction of more 
than  one  Member  State,  these  Member  States  shall  cooperate  to  determine  which 
Member  State  is  to  conduct  criminal  proceedings.  The  matter  shall,  where 
appropriate,  be  referred  to  Eurojust  in  accordance  with  Article  12  of  Council 
Framework Decision 2009/948/JHA58. 

In cases referred to in paragraph 1, point (c), Member States shall take the necessary 
measures  to  ensure  that  the  exercise  of  their  jurisdiction  is  not  subject  to  the 
condition  that  a  prosecution  can  be  initiated  only  following  a  report  made  by  the 
victim  in  the  place  where  the  criminal  offence  was  committed,  or  a  denunciation 
from the State of the place where the criminal offence was committed. 

Article 12 

Limitation periods 

Member States shall take the necessary measures to  provide for  a limitation  period 
that  enables  the  investigation,  prosecution,  trial  and  judicial  decision  of  criminal 
offences  referred  to  in  Articles 3  and  4  for  a  sufficient  period  of  time  after  the 
commission of those criminal offences, so that those criminal offences can be tackled 
effectively. 

Member  States  shall  take  the  necessary  measures  to  enable  the  investigation, 
prosecution, trial  and judicial decision of criminal offences referred  to in Articles 3 
and  4  which  are  punishable  by  a  maximum  penalty  of  at  least  five  years  of 
imprisonment, for a period of at least five years from the time when the offence was 
committed. 

(2) 

(3) 

(1) 

(2) 

58 

Council  Framework  Decision  2009/948/JHA  of  30 November  2009  on  prevention  and  settlement  of 
conflicts of exercise of jurisdiction in criminal proceedings, OJ L 328 of 15.12.2009, p. 42. 

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(3) 

By  way  of  derogation  from  paragraph 2,  Member  States  may  establish  a  limitation 
period that is shorter than five years, but not shorter than three years, provided that 
the period may be interrupted or suspended in the event of specified acts. 

(4) 

Member States shall take the necessary measures to enable the enforcement of: 

(a) 

(b) 

a penalty of more than one year of imprisonment; or alternatively 

a penalty of imprisonment in the case of a criminal offence which is punishable 
by a maximum penalty of at least four years of imprisonment, 

imposed  following  a  final  conviction  for  a  criminal  offence  referred  to  in  Articles  3 
and  4  for  at  least  five  years  from  the  date  of  the  final  conviction.  That  period  may 
include extensions of the limitation period arising from interruption or suspension. 

Article 13 

Coordination and cooperation between competent authorities within a Member State 

Member  States  shall  take  the  necessary  measures  to  establish  appropriate  mechanisms  for 
coordination  and  cooperation  at  strategic  and  operational  levels  among  all  their  competent 
administrative, law enforcement and judicial authorities.  

Such mechanisms shall be aimed at least at: 

(a) 

ensuring  common  priorities  and  understanding  of  the  relationship  between 
criminal and administrative enforcement; 

(b) 

exchange of information for strategic and operational purposes; 

(c) 

consultation in individual investigations; 

(d) 

the exchange of best practices; 

(e) 

assistance  to  networks  of  practitioners  working  on  matters  relevant  to 
investigating  and  prosecuting  offences  related  to  the  violation  of  Union 
restrictive measures. 

Article 14 

Reporting of offences and protection of persons who report offences related to the violation of 
Union restrictive measures or assist the investigation 

Member States shall take the necessary measures to ensure that the protection granted under 
Directive (EU) 2019/193759, is applicable to persons reporting criminal offences referred to in 
Articles 3 and 4 of this Directive. 

59 

Directive  (EU)  2019/1937  of  the  European  Parliament  and  of  the  Council  of  23 October  2019  on  the 
protection of persons who report breaches of Union law, OJ L 305, 26.11.2019, p. 17-56. 

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Article 15 

Investigative tools 

Member States shall take the necessary measures to ensure that effective investigative tools, 
such as those which are used in investigating organised crime or other serious crime cases, are 
also available for investigating or prosecuting offences referred to in Articles 3 and 4. 

Article 16 

Cooperation between Member States’ authorities, the Commission, Europol, Eurojust and the 
European Public Prosecutor's Office 

(1) 

(2) 

Without  prejudice  to  the  rules  on  cross-border  cooperation  and  mutual  legal 
assistance  in  criminal  matters,  Member  States’  authorities,  Europol,  Eurojust,  the 
European  Public  Prosecutor's  Office,  and  the  Commission  shall,  within  their 
respective  competences,  cooperate  with  each  other  in  the  fight  against  the  criminal 
offences  referred  to  in  Articles 3  and  4.  To  that  end,  the  Commission,  and  where 
appropriate, Europol and Eurojust, shall provide technical and operational assistance 
in  order  to  facilitate  the  coordination  of  investigations  and  prosecutions  by  the 
competent authorities. 

Member  States’  competent  authorities  shall  also  regularly  share  information  on 
practical issues, in particular, patterns of circumvention, e.g. structures to conceal the 
beneficial  ownership  and  control  of  assets,  with  the  Commission  and  other 
competent authorities. 

Article 17 

Amendments to Directive (EU) 2018/ 1673 

In Article 2(1) of Directive (EU) 2018/1673, the following point is added: 

‘(w) violation of Union restrictive measures’. 

Article 18 

Transposition 

(1) 

(2) 

Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative 
provisions  necessary  to  comply  with  this  Directive  by  [OP-  please  insert  the  data- 
within  six  months  after  entry  into  force  of  the  Directive].  They  shall  immediately 
inform  the  Commission  thereof.  Member  States  shall  communicate  to  the 
Commission the text of the main measures of national law which they adopt in the 
field covered by the Directive. 

When  Member  States  adopt  those  measures,  they  shall  contain  a  reference  to  this 
Directive or shall be accompanied by such reference on the occasion of their official 
publication. The method of making such a reference shall be laid down by Member 
States.  

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Article 19 

Evaluation and reporting 

(1) 

(2) 

(3) 

(4) 

By [OP- please insert the date- two  years after the transposition period is over]  the 
Commission  shall  submit  a  report  to  the  European  Parliament  and  the  Council, 
assessing the extent to which the Member States have taken the necessary measures 
in order to comply with this Directive. Member States shall provide the Commission 
with the necessary information for the preparation of that report. 

Without  prejudice  to  reporting  obligations  laid  down  in  other  Union  legal  acts, 
Member States  shall,  on  an  annual  basis,  submit  the  following  statistics  on  the 
criminal offences referred to in Articles 3 and 4 to the Commission: 

(a) 

(b) 

the  number  of  criminal  proceedings  initiated,  dismissed,  resulting  in  an 
acquittal, resulting in a conviction and ongoing; 

the  types  and  levels  of  penalties  imposed  for  violation  of  Union  restrictive 
measures. 

Member  States  shall  submit  the  statistical  data  referred  to  in  paragraph  2  to  the 
Commission  using  the  dedicated  reporting  tools  set  up  by  the  Commission  for 
reporting in the field of restrictive measures. 

By  [OP-please  insert  the  data-five  years  after  the  transposition  period  is  over],  the 
Commission shall carry out an evaluation of the impact of this Directive and submit 
a report to the European Parliament and to the Council. Member States shall provide 
the Commission with necessary information for the preparation of that report. 

This Directive shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 20 

This Directive is addressed to the Member States in accordance with the Treaties. 

Done at Brussels, 

Article 21 

For the European Parliament 
The President 

For the Council 
The President 

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