The EU has produced an updated version of the document EU Best Practices for the effective implementation of restrictive measures, which contains non exhaustive and non binding recommendations by the Foreign Relations Counsellors Working Party for Member States implementing EU restrictive measures. The Best Practices document covers a number of issues relating to listing & de-listing on EU targeted sanctions measures, & national implementation of asset freezing measures. This amends the previous version, published in 2008. The most significant amendments are:
- The addition of a section on de-listing from United Nations sanctions lists.
- Clarification of the tests for “ownership” or “control” of an entity and “making funds available indirectly”, mirroring the Guidelines on Implementation of Restrictive Measures published by the EU in 2013.
- An explanation of the non-liability & no claims clauses in a number of EU sanctions Regulations, which provide that no liability is incurred for damages caused by sanctioning a person in accordance with EU measures, or for breaching sanctions where it was not known or there was not reasonable cause to suspect that the action would infringe restrictive measures.
- A statement that, unless otherwise specified, sanctions measures annulled by the European court remain in force for the 2 month and 10 day time limit in which an appeal may be brought and for as long as an appeal is pending.
- Clarification of some of the grounds for exemptions to asset freezes (licences), and of the process for transfer of funds between EU and non-EU financial institutions where sanctions are involved.
The Best Practices and Guidelines documents are on the ‘guidelines’ section of this blog.