Directive (EU) 2024/1226 of the European Parliament and of the Council of 24 April 2024 on the definition of criminal offences and penalties for the violation of Union restrictive measures and amending Directive (EU) 2018/1673

French Version / German Version

Article 1 - Subject matter and scope

This Directive establishes minimum rules concerning the definition of criminal offences and penalties for the violation of Union restrictive measures.

Article 2 - Definitions

For the purposes of this Directive, the following definitions apply:

(1) ‘Union restrictive measures’ means restrictive measures adopted by the Union on the basis of Article 29 TEU or Article 215 TFEU;

(2) ‘designated person, entity or body’ means a natural or legal person, entity or body subject to Union restrictive measures;

(3) ‘funds’ means financial assets and benefits of every kind, including, but not limited to: (a) cash, cheques, claims on money, drafts, money orders and other payment instruments; (b) deposits with financial institutions or other entities, balances on accounts, debts and debt obligations;  (c) publicly-traded and privately-traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivatives contracts;  (d) interest, dividends or other income on assets or value accruing from or generated by assets;  (e) credit, right of set-off, guarantees, performance bonds or other financial commitments;  (f) letters of credit, bills of lading, bills of sale; (g) documents showing evidence of an interest in funds or financial resources;  (h)  crypto-assets as defined in Article 3(1), point (5), of Regulation (EU) 2023/1114 of the European Parliament and of the Council;

(4) ‘economic resources’ means assets of every kind, whether tangible or intangible, movable or immovable, which are not funds but can be used to obtain funds, goods or services;

(5) ‘freezing of funds’ means preventing the move, transfer, alteration or use of funds or access to funds, or dealing with funds in a way that would result in a change in their volume, amount, location, ownership, possession, character, destination or in a change that would enable the funds to be used, including portfolio management;

(6) ‘freezing of economic resources’ means preventing the use of economic resources to obtain funds, goods or services, including, but not limited to, by selling, hiring or mortgaging them.

Article 3 - Violation of Union restrictive measures

1.   Member States shall ensure that, where it is intentional and in violation of a prohibition or an obligation that constitutes a Union restrictive measure or that is set out in a national provision implementing a Union restrictive measure, where national implementation is required, the following conduct constitutes a criminal offence:

(a) making funds or economic resources available directly or indirectly to, or for the benefit of, a designated person, entity or body in violation of a prohibition that constitutes a Union restrictive measure;

(b) failing to freeze funds or economic resources belonging to or owned, held or controlled by a designated person, entity or body in violation of an obligation that constitutes a Union restrictive measure;

(c) enabling designated natural persons to enter into, or transit through, the territory of a Member State, in violation of a prohibition that constitutes a Union restrictive measure;

(d) entering into or continuing transactions with a third State, bodies of a third State or entities or bodies directly or indirectly owned or controlled by a third State or by bodies of a third State, including the award or continued execution of public or concession contracts, where the prohibition or restriction of that conduct constitutes a Union restrictive measure;

(e) trading, importing, exporting, selling, purchasing, transferring, transiting or transporting goods, as well as providing brokering services, technical assistance or other services relating to those goods, where the prohibition or restriction of that conduct constitutes a Union restrictive measure;

(f) providing financial services or performing financial activities, where the prohibition or restriction of that conduct constitutes a Union restrictive measure;

(g) providing services other than those referred to in point (f), where the prohibition or restriction of that conduct constitutes a Union restrictive measure;

(h) circumventing a Union restrictive measure by: (i) using, transferring to a third party, or otherwise disposing of, funds or economic resources directly or indirectly owned, held, or controlled by a designated person, entity or body, which are to be frozen pursuant to a Union restrictive measure, in order to conceal those funds or economic resources; (ii) providing false or misleading information to conceal the fact that a designated person, entity or body is the ultimate owner or beneficiary of funds or economic resources which are to be frozen pursuant to a Union restrictive measure; (iii) failing by a designated natural person, or by a representative of a designated entity or body, to comply with an obligation that constitutes a Union restrictive measure to report to the competent administrative authorities funds or economic resources within the jurisdiction of a Member State, belonging to, owned, held, or controlled by them;  (iv) failing to comply with an obligation that constitutes a Union restrictive measures to provide the competent administrative authorities with information on frozen funds or economic resources or information held about funds or economic resources within the territory of the Member States, belonging to, owned, held or controlled by designated persons, entities or bodies and which have not been frozen, where such information was obtained in the performance of a professional duty;

(i) breaching or failing to fulfil conditions under authorisations granted by competent authorities to conduct activities, which in the absence of such an authorisation amount to a violation of a prohibition or restriction that constitutes a Union restrictive measure;

2   Member States may provide that the following conduct does not constitute a criminal offence:

(a) conduct listed in paragraph 1, points (a), (b) and (h) of this Article, where that conduct involves funds or economic resources of a value of less than EUR 10 000;

(b) conduct listed in paragraph 1, points (d) to (g) and (i) of this Article, where that conduct involves goods, services, transactions or activities of a value of less than EUR 10 000.

Member States shall take the necessary measures to ensure that the threshold of EUR 10 000 or more may be met through a series of conduct listed in paragraph 1, points (a), (b), and (d) to (i) of this Article, that is linked and of the same kind, where that conduct is carried out by the same offender.

3.   Member States shall ensure that the conduct listed in paragraph 1, point (e) of this Article, constitutes a criminal offence also if committed with serious negligence, at least where that conduct relates to items included in the Common Military List of the European Union or to dual-use items listed in Annex I and IV to Regulation (EU) 2021/821.

4.   Nothing in paragraph 1 shall be understood as imposing an obligation on legal professionals to report information that they receive from, or obtain on, one of their clients in the course of ascertaining the legal position of that client or performing the task of defending or representing that client in, or concerning, judicial proceedings, including providing advice on instituting or avoiding such proceedings.

5.   Nothing in paragraphs 1, 2 and 3 shall be understood as criminalising humanitarian assistance for persons in need or activities in support of basic human needs provided in accordance with the principles of impartiality, humanity, neutrality and independence and, where applicable, with international humanitarian law.

Article 4 - Inciting, aiding and abetting, and attempt

1.   Member States shall take the necessary measures to ensure that inciting, and aiding and abetting the commission of an offence referred to in Article 3 is punishable as a criminal offence.

2.   Member States shall ensure that an attempt to commit offences referred to in Article 3(1), point (a), points (c) to (g), and points (h)(i) and (ii), is punishable as a criminal offence.

Article 5 - Penalties for natural persons

1.   Member States shall ensure that the criminal offences referred to in Articles 3 and 4 are punishable by effective, proportionate and dissuasive criminal penalties.

2.   Member States shall take the necessary measures to ensure that the criminal offences referred to in Article 3 are punishable by a maximum penalty of imprisonment.

3.   Member States shall take the necessary measures to ensure that:

(a) the criminal offences covered by Article 3(1), points (h)(iii) and (iv), are punishable by a maximum term of imprisonment of at least one year where those criminal offences involve funds or economic resources of a value of at least EUR 100 000 on the date when the offence was committed;

(b) the criminal offences covered by Article 3(1), points (a), (b) and points (h)(i) and (ii), are punishable by a maximum term of imprisonment of at least five years where those criminal offences involve funds or economic resources of a value of at least EUR 100 000 on the date when the offence was committed;

(c) the criminal offence covered by Article 3(1), point (c), is punishable by a maximum term of imprisonment of at least three years;

(d) criminal offences covered by Article 3(1), points (d) to (g), and point (i), are punishable by a maximum term of imprisonment of at least five years where those criminal offences involve goods, services, transactions or activities of a value of at least EUR 100 000 on the date the offence was committed;

(e) where the criminal offence covered by Article 3(1), point (e) of this Regulation, involves items included in the Common Military List of the European Union or dual-use items listed in Annexes I and IV to Regulation (EU) 2021/821, such criminal offence is punishable by a maximum term of imprisonment of at least five years irrespective of the value of the items involved.

4.   Member States shall take the necessary measures to ensure that the threshold of EUR 100 000 or more may be met through a series of offences covered by Article 3(1), points (a), (b) and points (d) to (i), that are linked and of the same kind, where those offences are committed by the same offender.

5.   Member States shall take the necessary measures to ensure that natural persons who have committed the criminal offences referred to in Articles 3 and 4 may be subject to accessory criminal or non-criminal penalties or measures which may include the following:

(a) fines that are proportionate to the gravity of the conduct and to the individual, financial and other circumstances of the natural person concerned;

(b) withdrawal of permits and authorisations to pursue activities that resulted in the relevant criminal offence;

(c) disqualification from holding, within a legal person, a leading position of the same type used for committing the criminal offence;

(d) temporary bans on running for public office;

(e) where there is a public interest, following a case-by-case assessment, publication of all or part of the judicial decision that relates to the criminal offence committed and the penalties or measures imposed, which may include the personal data of convicted persons only in duly justified exceptional cases.

Article 6 - Liability of legal persons

1.   Member States shall ensure that legal persons can be held liable for criminal offences referred to in Articles 3 and 4 where such offences have been committed for the benefit of those legal persons by any person who has a leading position within the legal person concerned, acting either individually or as part of an organ of that legal person, based on:

(a) a power of representation of the legal person;

(b) an authority to take decisions on behalf of the legal person; or

(c) an authority to exercise control within the legal person.

2   Member States shall ensure that legal persons can be held liable where the lack of supervision or control by a person referred to in paragraph 1 of this Article has made possible the commission by a person under its authority of a criminal offence referred to in Articles 3 and 4 for the benefit of that legal person.

3.   Liability of legal persons under paragraphs 1 and 2 of this Article shall not preclude criminal proceedings against natural persons who commit, incite or are accessories in to the criminal offences referred to in Articles 3 and 4.

Article 7 - Penalties for legal persons

1.   Member States shall take the necessary measures to ensure that a legal person held liable pursuant to Article 6 is punishable by effective, proportionate and dissuasive criminal or non-criminal penalties or measures, which shall include criminal or non-criminal fines and may include other criminal or non-criminal penalties or measures, such as:

(a) exclusion from entitlement to public benefits or aid;

(b) exclusion from access to public funding, including tender procedures, grants and concessions;

(c) disqualification from the practice of business activities;

(d) withdrawal of permits and authorisations to pursue activities which have resulted in the relevant criminal offence;

(e) placing under judicial supervision;

(f) judicial winding-up;

(g) closure of establishments used for committing the criminal offence;

(h) where there is a public interest, publication of all or part of the judicial decision relating to the criminal offence committed and the penalties or measures imposed, without prejudice to rules on privacy and the protection of personal data.

2.   Member States shall take the necessary measures to ensure that a legal person held liable pursuant to Article 6 for criminal offences referred to in Article 3(1) is punishable by criminal or non-criminal fines, the amount of which shall be proportionate to the gravity of the conduct and to the individual, financial and other circumstances of the legal person concerned. Member States shall take the necessary measures to ensure that the maximum level of such fines is not less than:

(a) for criminal offences covered by Article 3(1), points (h)(iii) and (iv): (i) 1 % of the total worldwide turnover of the legal person, either in the business year preceding that in which the offence was committed, or in the business year preceding the decision to impose the fine; or  (ii) an amount corresponding to EUR 8 000 000;

(b) for criminal offences covered by Article 3(1) points (a) to (g), points (h)(i) and (ii), and point (i): (i) 5 % of the total worldwide turnover of the legal person, either in the business year preceding that in which the offence was committed, or in the business year preceding the decision to impose the fine; or (ii) an amount corresponding to EUR 40 000 000.

Member States may establish rules for cases where it is not possible to determine the amount of the fine on the basis of the total worldwide turnover of the legal person in the business year preceding that in which the offence was committed, or in the business year preceding the decision to impose the fine.

Article 8 - Aggravating circumstances

To the extent that the following circumstances do not form part of the constituent elements of the criminal offences referred to in Articles 3 and 4, Member States shall take the necessary measures to ensure that one or more of the following circumstances can, in accordance with national law, be regarded as an aggravating circumstance:

(a) the offence was committed in the framework of a criminal organisation as defined in Framework Decision 2008/841/JHA;

(b) the offence involved the use by the offender of false or forged documents;

(c) the offence was committed by a professional service provider in violation of the professional obligations of such professional service provider;

(d) the offence was committed by a public official when performing his or her duties or by another person performing a public function;

(e) the offence generated or was expected to generate substantial financial benefits, or avoided substantial expenses, directly or indirectly, to the extent that such benefits or expenses can be determined;

(f) the offender destroyed evidence, or intimidated witnesses or complainants;

(g) the natural or legal person had previously been convicted by a final judgment of offences covered by Articles 3 and 4.

Article 9 - Mitigating circumstances

Member States shall take the necessary measures to ensure that, in relation to the relevant criminal offences referred to in Articles 3 and 4, one or more of the following circumstances can, in accordance with national law, be regarded as a mitigating circumstance:

(a)he offender provides the competent authorities with information they would not otherwise have been able to obtain, helping them to identify or bring to justice the other offenders;

(b) the offender provides the competent authorities with information they would not otherwise have been able to obtain, helping them to find evidence.

Article 10 - Freezing and confiscation

1.   Member States shall take the necessary measures to enable the freezing and confiscation of instrumentalities and proceeds from the criminal offences referred to in Articles 3 and 4. Member States bound by Directive 2014/42/EU of the European Parliament and of the Council shall take those necessary measures in accordance with that Directive.

2.   Member States shall take the necessary measures to enable the freezing and confiscation of funds or economic resources subject to Union restrictive measures in respect of which the designated natural person, or the representative of a designated entity or body, commits, or participates in, an offence covered by Article 3(1), point (h)(i) or (ii). Member States shall take those necessary measures in accordance with Directive 2014/42/EU.

Article 11 - Limitation periods

1.   Member States shall take the necessary measures to provide for a limitation period that enables the investigation, prosecution, trial and adjudication of criminal offences referred to in Articles 3 and 4 for a sufficient period of time after the commission of those criminal offences, in order for those criminal offences to be tackled effectively.

2.   The limitation period referred to in paragraph 1 shall be of at least five years from the commission of a criminal offence punishable by a maximum term of imprisonment of at least five years.

3.   Member States shall take the necessary measures to provide for a limitation period of at least five years from the date of the final conviction for a criminal offence referred to in Articles 3 and 4 that enables the enforcement of the following penalties imposed following that conviction:

(a) a penalty of imprisonment of more than one year; or

(b) a penalty of imprisonment for a criminal offence punishable by a maximum term of imprisonment of at least five years.

4.   By way of derogation from paragraphs 2 and 3, Member States may establish a limitation period that is shorter than five years, but not shorter than three years, provided that such limitation period may be interrupted or suspended in the event of specified acts.

Article 12 - Jurisdiction

1.   Each Member State shall take the necessary measures to establish its jurisdiction over the criminal offences referred to in Articles 3 and 4 where:

(a) the criminal offence was committed in whole or in part within its territory;

(b) the criminal offence was committed on board a ship or an aircraft registered in the Member State concerned or flying its flag; or

(c) the offender is one of its nationals.

2.   A Member State shall inform the Commission where it decides to extend its jurisdiction to one or more criminal offences referred to in Articles 3 and 4 which have been committed outside its territory, where:

(a) the offender is a habitual resident in its territory;

(b) the offender is one of its officials who acts in his or her official duty;

(c) the offence is committed for the benefit of a legal person which is established in its territory; or

(d) the offence is committed for the benefit of a legal person in respect of any business done in whole or in part on its territory.

3.   Where a criminal offence referred to in Articles 3 and 4 falls within the jurisdiction of more than one Member State, those Member States shall cooperate to determine which Member State is to conduct criminal proceedings. The matter shall, where appropriate, be referred to Eurojust in accordance with Article 12(2) of Council Framework Decision 2009/948/JHA (²¹).

4.   In cases referred to in paragraph 1, point (c), Member States shall take the necessary measures to ensure that the exercise of their jurisdiction is not subject to the condition that prosecution can be initiated only following a denunciation from the State of the place where the criminal offence was committed.

Article 13 - Investigative tools

Member States shall take the necessary measures to ensure that effective and proportionate investigative tools are available for investigating or prosecuting criminal offences referred to in Articles 3 and 4. Where appropriate, those tools shall include special investigative tools, such as those used in combatting organised crime or in other serious crime cases.

Article 14 - Reporting of violations of Union restrictive measures and protection of persons who report such violations

Member States shall take the necessary measures to ensure that Directive (EU) 2019/1937 is applicable to the reporting of violations of Union restrictive measures referred to in Articles 3 and 4 of this Directive and to the protection of persons reporting such violations, under the conditions established therein.

Article 15 - Coordination and cooperation between competent authorities within a Member State

Member States shall designate, from among their competent authorities and without prejudice to judicial independence, a unit or body for ensuring coordination and cooperation between law enforcement authorities and authorities in charge of implementing Union restrictive measures, in relation to the criminal activities covered by this Directive.

The unit or body referred to in the first subparagraph shall have the following tasks:

(a) to ensure common priorities and understanding of the relationship between criminal and administrative enforcement;

(b) to exchange information for strategic purposes, within the limits set out in applicable Union and national law;

(c) consultation in individual investigations, within the limits set out in applicable Union and national law.

Article 16 - Cooperation between competent authorities of Member States, the Commission, Europol, Eurojust and the European Public Prosecutor’s Office

1.   Where the criminal offences referred to in Articles 3 and 4 are suspected to be of a cross-border nature, the competent authorities of the Member States concerned shall consider referring the information related to those criminal offences to appropriate competent bodies.

Without prejudice to the rules on cross-border cooperation and mutual legal assistance in criminal matters, the Member States, Europol, Eurojust, the European Public Prosecutor’s Office and the Commission shall, within their respective competences, cooperate with each other in the fight against the criminal offences referred to in Articles 3 and 4. To that end, Europol and Eurojust shall, where appropriate, provide the technical and operational assistance needed by the competent national authorities to facilitate the coordination of their investigations.

2.   The Commission may, where necessary, establish a network of experts and practitioners to share best practices and, where appropriate, provide assistance to the competent authorities of Member States in order to facilitate the investigation of offences related to the violation of Union restrictive measures. That network, where appropriate, may also provide a publicly available and regularly updated mapping of the risks of violations or circumvention of Union restrictive measures in specific geographic areas, and with respect to specific sectors and activities.

3.   Where the cooperation referred to in paragraph 1 involves cooperation with the competent authorities of third countries, that cooperation should take place with full respect of fundamental rights and international law.

4.   Member States’ competent authorities shall on a frequent and regular basis share information on practical issues, in particular, on patterns of circumvention, such as structures to conceal the beneficial ownership and control of assets, with the Commission and other competent authorities.

Article 17 - Statistical data

1.   Member States shall ensure that a system is in place for the recording, production and provision of anonymised statistical data on the reporting, investigative and judicial stages in relation to the criminal offences referred to in Articles 3 and 4 in order to monitor the effectiveness of their measures to combat the violation of Union restrictive measures.

2.   Without prejudice to reporting obligations laid down in other Union legal acts, Member States shall, on an annual basis, submit to the Commission statistical data on the criminal offences referred to in Articles 3 and 4, which shall, as a minimum, include existing data on:

(a) the number of criminal offences registered and adjudicated by the Member States;

(b) the number of dismissed court cases, including on the grounds of expiry of the limitation period for the criminal offence concerned;

(c) the number of natural persons that are: (i) prosecuted; (ii) convicted;

(d) the number of legal persons that are:(i) prosecuted; (ii) convicted or fined;

(e) the types and levels of penalties imposed.

3.   Member States shall ensure that a consolidated review of their statistics is published at least every three years.

Article 18 - Amendment to Directive (EU) 2018/1673

In Article 2(1), the following point is added:

'(w) violation of Union restrictive measures.'

Article 19 - Evaluation, reporting and review

1.   The Commission shall, by 20 May 2027, submit a report to the European Parliament and to the Council, assessing the extent to which the Member States have taken the necessary measures to comply with this Directive. Member States shall provide the Commission with the necessary information for the preparation of that report.

2.   The Commission shall, by 20 May 2030, carry out an evaluation of the impact and effectiveness of this Directive, taking into account the annual statistical data provided by the Member States, addressing the need to update the list of the criminal offences related to the violation of Union restrictive measures, and submit a report to the European Parliament and to the Council. Member States shall provide the Commission with necessary information for the preparation of that report. Where necessary, that report shall be accompanied by a legislative proposal.

Article 20 - Transposition

1.   Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 20 May 2025. They shall immediately inform the Commission thereof.

When Member States adopt those measures, they shall contain a reference to this Directive or shall be accompanied by such reference on the occasion of their official publication. The method of making such a reference shall be laid down by Member States.

2.   Member States shall communicate to the Commission the text of the main measures of national law which they adopt in the field covered by this Directive.

Article 21 - Entry into force

This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Article 22 - Addressees

This Directive is addressed to the Member States in accordance with the Treaties.

Initial version