EU cracks down on the criminal enforcement of sanctions violations

Turning its attention to enforcement, and following on the Council’s earlier decision to recognise sanctions violations as an ‘EU crime’, the European Commission has now issued a proposal for a Directive to harmonise the criminal enforcement of sanctions across the EU (the Proposed Directive). 

If the Proposed Directive is adopted, many national legislators are likely to have to revise their current enforcement frameworks, and may seize this opportunity to move away from an often patchy approach to enforcement to adopt a more comprehensive approach as the intensity and importance of sanctions continues to increase.  For companies within the scope of applicability of EU sanctions, the Proposed Directive is therefore likely to mean that they will want to review the robustness of their sanctions compliance framework in light of the significant penalties mandated for violations and the proposed liability framework for enforcing against companies which may make it easier for enforcement actions to be brought. 

We summarise the key takeaways of the Proposed Directive in the article below, provide some initial thoughts on what the Proposed Directive may mean for the enforcement of sanctions in Belgium, Germany and the Netherlands, and share our perspective on recent enforcement developments in the UK.  

Should you have any questions on the matters discussed in this article, please contact any of its authors or your usual contact at Allen & Overy LLP.