Financial Crime World

Title: EU Agencies Urged to Take Bolder Action Against Sanctions Violations in Croatia and EU Member States

Overview

A new report published by the European Union Agency for Criminal Justice Cooperation (Eurojust) underscores the need for EU agencies to collaborate more effectively in addressing individuals and businesses responsible for violating EU sanctions. The report, “Prosecution of sanctions (restrictive measures) violations in national jurisdictions: a comparative analysis,” highlights the current lack of coordination and consistency across EU member states in penalizing and prosecuting such violators.

Key Findings from Eurojust Report

  • Insufficient coordination: The Eurojust report emphasizes the importance of strengthened collaboration between national law enforcement agencies, regulators, and prosecutors in dealing with sanctions violations.
  • Differences in penalties: The report reveals significant discrepancies in penalties for sanctions violations among EU member states.

Differing Penalties: A Comparative Analysis

According to the report, while EU sanctions apply uniformly across all member states, each country must adopt appropriate punishment measures and ensure their effective implementation. The report identifies the following disparities in penalties for sanctions violations among EU member states:

  • Croatia: €0.133 million
  • Latvia: €37.5 million
  • Lithuania: €2 million

Individual Fines

  • Croatia: €6,700
  • Malta: €5 million

Implications of the Report

The report’s findings come as concerns grow regarding the effectiveness and enforcement of EU sanctions. Cases such as the French Lafarge case, where a multinational corporation faced charges for complicity in crimes against humanity through its foreign subsidiary, illustrate the potential consequences for non-compliance with restrictive measures.

Recommendations for Addressing Sanctions Violations

To foster greater consistency and deterrence for sanctions violators, the EU must re-evaluate its approach to addressing these transgressions. Some potential recommendations include:

  • Increasing penalties: The EU can consider increasing the severity of penalties for sanctions violators to provide greater deterrence.
  • Collaboration between EU member states: The EU can encourage better collaboration between member states to facilitate the more effective investigation, prosecution, and enforcement of sanctions violations.