Financial Crime World

Estonia Imposes Strict Sanctions Regime: Compliance Key for Businesses

Tallinn, Estonia - In a move to adhere to international sanctions, Estonia has established a robust sanctions regime that requires businesses to be vigilant about compliance.

International Sanctions Act 2019

The country’s main legislation for enforcing international sanctions is the International Sanctions Act 2019. This act outlines the process for implementing UN and EU sanctions.

Notification Requirements

According to legal experts at Eversheds Sutherland, Estonia does not maintain its own list of sanctioned individuals and entities, instead relying on UN and EU sanctions lists. However, businesses are required to notify the Estonian Financial Intelligence Unit if they know or suspect that someone with whom they are doing business is subject to an international financial sanction.

Licensing and Authorization System

Estonia has a licensing and authorization system in place for exemptions from trade and financial sanctions. Prior authorization may be obtained from the relevant Ministry or the Financial Intelligence Unit, depending on the type of sanction. Authorizations or refusals will be based on the conditions of the sanctions themselves.

Consequences of Non-Compliance

The consequences for breaching sanctions in Estonia are severe:

  • Fines
  • Imprisonment of up to five years for individuals
  • Voiding of transactions that breach the Act

However, exemptions may be available where retrospective authorization is granted.

Responsibility and Compliance

Responsibility for international sanctions in Estonia is shared between various administrative agencies, including:

  • Ministry of Foreign Affairs
  • Police and Border Guard Board
  • Ministry of Economic Affairs and Communication
  • Ministry of the Interior
  • Financial Intelligence Unit
  • Tax and Customs Board

Businesses operating in Estonia must take note of these regulations to avoid falling foul of the law. Failure to comply with sanctions could result in serious consequences for individuals and companies alike.

Contact Information for Regulators

For more information, please contact:

  • Ministry of Foreign Affairs: Islandi väljak 1, Tallinn 15049, Estonia | (+372) 6 377 000
  • Police and Border Guard Board: Pärnu mnt 139, Tallinn 15060, Estonia
  • Ministry of Economic Affairs and Communication: Suur-Ameerika 1, Tallinn 10122, Estonia
  • Ministry of the Interior: Pikk 61, Tallinn 15065, Estonia
  • Financial Intelligence Unit: Tööstuse 52, Tallinn 10416, Estonia
  • Tax and Customs Board: Lõõtsa 8a, Tallinn 15176, Estonia