On 19 May 2024, the Directive (EU) 2024/1226[1] introducing criminal offences and penalties for EU sanctions violations entered into force. The Directive aims to ensure the effective application of EU restrictive measures, the integrity of the internal market within the EU and achieve a high level of security within the area of freedom, security and justice. 

The Directive adopts EU-wide minimum rules for the prosecution of violation or circumvention of EU sanctions in Member States. Member States must ensure that the following conducts – where intentional and in violation of a prohibition or obligation under EU sanctions – constitute a criminal offence punishable as such: 

1. making funds or economic resources available directly or indirectly to, or for the benefit of, a designated person, entity, or body in violation of a prohibition that constitutes a Union restrictive measure; 
2.  failing to freeze funds or economic resources belonging to or owned, held or controlled by a designated person, entity, or body in violation of an obligation that constitutes a Union restrictive measure; 
3. enabling designated natural persons to enter into, or transit through, the territory of a Member State, in violation of a prohibition that constitutes a Union restrictive measure;
4. entering into or continuing transactions with a third State, bodies of a third State, or entities or bodies directly or indirectly owned or controlled by a third State or by bodies of a third State, including the award or continued execution of public or concession contracts, where the prohibition or restriction of that conduct constitutes a Union restrictive measure; 
5. trading, importing, exporting, selling, purchasing, transferring, transiting or transporting goods, as well as providing brokering services, technical assistance or other services relating to those goods, where the prohibition or restriction of that conduct constitutes a Union restrictive measure; 
6. providing financial services or performing financial activities, where the prohibition or restriction of that conduct constitutes a Union restrictive measure; 
7. providing services other than those referred to in point (f), where the prohibition or restriction of that conduct constitutes a Union restrictive measure; and
8. circumventing a Union restrictive measure.

 In addition, inciting, aiding and abetting these offences can also be penalised. 

In terms of penalties, conducts by natural persons which are intentional and in violation of a prohibition or an obligation under EU sanctions shall be punished by a maximum penalty of imprisonment (1 to 5 years, depending on the criminal offence at stake). In addition, natural persons can be subject to accessory criminal or non-criminal penalties, such as fines, or the withdrawal of permits or authorisation to pursue activities that resulted in the criminal offence.

Legal persons can also be held liable for criminal offences where such offences have been committed for the benefit of those legal persons by any person who has a leading position within the legal person concerned. Member States must take effective, proportionate and dissuasive criminal or non-criminal penalties, such as exclusion from public funding, placing under judicial supervision, disqualification of business activities, and withdrawal of permits and authorisations to pursue activities which have resulted in the relevant criminal offence. In addition, Member States may impose heavy fines to legal persons, ranging from 1% to 5% of the total worldwide turnover of the legal person concerned, or an amount corresponding to 8 to 40 million euros. 

Member States shall take the necessary measures to ensure that aggravating or mitigating circumstances are regarded in accordance with national law. 

Next steps

Member States have one year to transpose the Directive into their national legislation.