Financial Crime World

Title: EU Sanctions Against Persons and Entities Violating Peace and Security in the Democratic Republic of Congo

The European Union (EU) imposes sanctions on individuals and entities responsible for actions that undermine peace, stability, and security in the Democratic Republic of Congo (DRC). These measures follow UN Security Council and UN Sanctions Committee determinations.

  • The EU’s restrictive measures on the DRC stem from Council Decision 2010/788/CFSP and Regulation (EC) No 1183/2005.
  • The primary objectives are:
    • Targeting those involved in violating the arms embargo or obstructing consensual elections.
    • Sanctioning persons and entities committing acts of violence or undermining the rule of law in the DRC.

Financial Sanctions and Transposition of UN Resolutions

  • Financial sanctions are imposed against individuals or entities designated by the UN Sanctions Committee for violating the arms embargo under UN Security Council resolutions 1493, 1596, 1649, and 1698.
  • EU countries can release frozen funds for specific expenses like food, mortgages, medicines, and professional fees.

Key Points

  • The EU’s legal basis for imposing sanctions comes from Article 29 of the Treaty on European Union and Article 215 of the Treaty on the Functioning of the European Union.
  • EU countries can freeze funds and economic resources owned by targeted individuals or organizations and prevent them from entering the EU.
  • Individuals, entities, and bodies are required to disclose any relevant information to competent authorities or the European Commission.
  • The regulation applies within the EU, on aircraft or vessels under EU jurisdiction, to EU nationals, and to individuals or bodies incorporated under EU law or doing business within the EU.

Timeline

  • Council Decision 2010/788/CFSP has been in effect since December 20, 2010.
  • Regulation (EC) No 1183/2005 has been in place since July 23, 2005.

Background

Freezing of Funds and Economic Resources

  • Freezing of funds and economic resources refers to preventing any transaction or dealing with the funds or assets that would result in any change in their nature or availability to be used, including portfolio management.