The EU Parliament has taken a significant step towards cracking down on sanctions violations with new legislation. These include those facilitated through cryptocurrencies by the approval of a new set of rules on Tuesday.
The move comes in response to growing concerns over the circumvention of EU financial sanctions on Russia following its invasion of Ukraine.
In an overwhelming show of support, 543 parliamentarians representing the European Union’s 27 member states voted in favor of the new legislation, with only 45 votes against and 27 abstentions.
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The rules aim to address the weaknesses and loopholes created by diverging national approaches to enforcing sanctions.
Key details:
- EU Parliament greenlights new rules to combat sanctions violations.
- The legislation aims to close loopholes and ensure consistent enforcement across member states.
- The move was prompted by concerns over the violation of EU financial sanctions on Russia.
- Sanctions can involve freezing assets, including cryptocurrencies and wallets.
- The new law sets consistent definitions for violations and associated penalties.
EU sanctions can allow confiscation of frozen assets
Dutch lawmaker Sophie in ‘t Veld, who is responsible for guiding the legislation through Parliament, emphasized the necessity of these new rules. She also stated that they would allow for the confiscation of frozen assets.
While sanctions are adopted at the EU level, individual member states are responsible for their enforcement. Additionally, the European Union’s restrictive measures cover a broad spectrum of financial services, which includes the provision of crypto-assets and wallets, as stated in the approved document.
The new legislation establishes consistent definitions for violations, such as failing to freeze funds, disregarding travel bans or arms embargoes, transferring funds to sanctioned individuals, or conducting business with state-owned entities of countries under sanction.
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The approval of these stricter rules by the European Parliament marks a significant milestone in the EU’s efforts to combat sanctions violations. In addition, this ensures a more unified approach to enforcement.
However, the Council, which assembles top government officials from the member states, must approve the legislation before it can become law.
