EU Sanctions: A New Era of Consistency and Deterrence

The European Union has proposed a directive aimed at strengthening its response to economic sanctions violations by introducing common criminal offences and penalties for violators. This initiative seeks to ensure uniform enforcement across all Member States, providing clear definitions and dissuasive penalties.

Investigating and Prosecuting Sanctions Offences

In Belgium, the investigation and recording of sanctions offences fall under the responsibility of the General Administration of the Treasury. Judicial police officers and Customs and Excise Administration agents are also empowered to investigate. The Public Prosecutor’s Office has jurisdiction for prosecuting criminal offences.

Corporate and Personal Liability

Belgium provides for both corporate and personal liability for sanctions violations. Corporate liability does not exclude personal liability if all constitutive elements of a criminal offence are present for the legal entity and natural person, in which case both will be liable as co-perpetrators.

Financial Penalties

The maximum financial penalties applicable to individuals and legal entities convicted of criminal sanctions violations are EUR [amount], with potential civil penalties also applying. Civil liability depends on the form of the company, with unlimited responsibility companies facing both corporate and personal liability.

Civil Enforcement Process

In civil proceedings, claimants may bring an action before a Belgian court on the basis of Article 1382 of the (former) Civil Code. Penalties/damages are determined on a case-by-case basis, with hearings and final judgments typically being public unless exceptional circumstances apply.

Appeal Process

The appeal process involves a one-month deadline for applicants to appeal judgments to the Court of Appeal, followed by a potential further appeal to the Supreme Court. As of now, there have been no reported judicial proceedings in Belgium challenging penalty assessments related to sanctions violations.

Statute of Limitations

Administrative penalties are subject to a five-year limitation period from the date of offence, while criminal penalties have a five-year or 10-year limitation period depending on the sentence imposed.

The proposed EU directive aims to introduce common criminal offences and penalties for the violation of EU sanctions, ensuring uniform enforcement across all Member States. The measure is designed to make compliance with restrictive measures more effective and deter future violations.

Accessing Economic Sanctions Laws and Guidance

Relevant economic sanctions laws, regulations, administrative actions, and guidance are publicly available on various websites, including:

European Union
Belgium’s Federal Public Service Foreign Affairs, Foreign Trade and Development Cooperation
General Administration of the Treasury
Materials are available in multiple languages, including English.

By adopting this directive, the EU is taking a significant step towards strengthening its response to economic sanctions violations and promoting compliance with restrictive measures. The initiative aims to ensure that the EU’s sanctions policy is enforced consistently across all Member States, providing a clear and effective deterrent against future violations.