The 10th package of sanctions established the obligation for citizens of EU Member States to disclose information about the assets of sanctioned persons

As part of the 10th package of sanctions, Article 8 of Regulation (EU) No. 269/2014 was amended. This rule established the obligation for citizens of the EU Member States to disclose information about the assets of sanctioned persons within 2 weeks as they became aware of such information.

Article 8 of Regulation (EU) No. 269/2014 as amended:

1. Notwithstanding the applicable rules concerning reporting, confidentiality and professional secrecy, natural and legal persons, entities and bodies shall:

(a) supply immediately any information which would facilitate implementation of this Regulation, such as:

— information on funds and economic resources frozen or information held about funds and economic resources within Union territory belonging to, owned, held or controlled by natural or legal persons, entities or bodies from the sanctions list and which have not been treated as frozen (within two weeks of acquiring this information);

— information on funds and economic resources frozen or information held about funds and economic resources within Union territory belonging to, owned, held or controlled by natural or legal persons, entities or bodies from the sanctions list and which have been subject to any move, transfer, alteration, use of, access to, or dealing referred (within two weeks of acquiring this information);

and,

(b) cooperate with the competent authority in any verification of such information.

For the first time, the obligation of sanctioned persons to disclose information about their assets was introduced on July 21, 2022, when Article 9 of Regulation No. 269 was amended.

Under Part 2 Article 9 of Regulation No. 269 the rule for the sanctioned persons to disclose information about all their assets owned or controlled in the relevant EU Member State was introduced.

According to Part 1 Article 9 of Regulation No. 269 non-compliance with these requirements was equated to circumvention of sanctions

Since November 2022, by decision of the EU Council, the circumvention of sanctions has been criminalized. However, the punishment for this crime hasn’t yet been established.

On October 14, 2022, Timchenko (anonymized as SE and SF) filed a complaint with the EU Court of Justice deeming Regulation (EU) 2022/1273 inconsistent with the EU law, which introduced a requirement for sanctioned persons to disclose information about assets in the EU. The case was denied.

Nadmitov, Ivanov & Partners Law Firm advises on the sanctions.