- Applicable Financial Sanctions laws: Which national laws bring EU Russia sanctions laws into effect? If EU sanctions laws do not apply, which do?
- Does the same framework apply to Financial Sanctions against other countries (e.g. Iran?) If so, please provide link to relevant government website listing these.
- Which agency issues “licences” permitting certain activities which would otherwise be prohibited by Financial Sanctions laws?
- Link to Consolidated List of individuals and companies subject to Financial Sanctions
- Can a breach of Financial Sanctions laws be treated as a criminal offence? Please indicate the relevant law.
- What are the penalties for a criminal breach of Financial Sanctions?
- Who investigates criminal breaches of Financial Sanctions laws?
- Are there non-criminal (e.g. administrative or civil) penalties and/or fines for a breach of Financial Sanctions?
- What are the penalties for a non-criminal breach of Financial Sanctions?
- Who investigates non-criminal breaches of Financial Sanctions laws?
- Key government guidance relating to the implementation of Financial Sanctions (e.g. FAQs)
jurisdiction
1. Applicable Financial Sanctions laws: Which national laws bring EU Russia sanctions laws into effect? If EU sanctions laws do not apply, which do?
In Germany, the provisions on criminal offences and administrative offences in relation to sanction violations are set out in Sections 17 et seq. German Foreign Trade and Payments Act (Außenwirtschaftsgesetz, “AWG”) in conjunction with Sections 80 et seq. German Foreign Trade and Payments Ordinance (Außenwirtschaftsverordnung). The most important regulation is Section 18 AWG. According to Section 18 (1) no. 1 AWG, anyone who violates an export, import, transit, transfer, sale, purchase, delivery, provision, transfer or investment ban (see Section 18 (1) no. 1 lit. a AWG), a ban on broadcasting, transmission, distribution or other services (Section 18 (1) no. 1 lit. b AWG) or a ban on the disposal of frozen funds and economic resources (Section 18 (1) no. 1 lit. c AWG) is liable to a prison sentence of three months to five years. 1 no. 1 lit. c) sanctions a violation of a directly applicable legal act of the European Communities or the European Union published in the Official Journal of the European Communities or the European Union, which serves to implement an economic sanction measure adopted by the Council of the European Union in the area of the common foreign and security policy. The same penalty is to be assumed in accordance with Section 18 (1) no. 2 AWG in the event of a breach of the authorisation requirements.
If EU anctions laws do not apply it is important to check if there are administrative acts (cf. Section 6 AWG). Likewise, regulations can be issued (cf. Section 4 AWG)
But this is more of a theoretical possibility. The focus is clearly on the EU sanctions and Sections 17 et seq. AWG.
2. Does the same framework apply to Financial Sanctions against other countries (e.g. Iran?) If so, please provide link to relevant government website listing these.
Yes, it does. See for example:
3. Which agency issues “licences” permitting certain activities which would otherwise be prohibited by Financial Sanctions laws?
The Federal Office for Economic Affairs and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle) and the German Federal Bank (Bundesbank) are responsible for the issuing of licenses. The German Federal Bank (Bundesbank) is responsible for the financial sanction laws.
4. Link to Consolidated List of individuals and companies subject to Financial Sanctions
5. Can a breach of Financial Sanctions laws be treated as a criminal offence? Please indicate the relevant law.
Yes - as stated above - Section 18 AWG is the relevant section in Germany.
6. What are the penalties for a criminal breach of Financial Sanctions?
The penalty for a criminal breach can be a prison sentence of three months to five years (cf. Section 18 AWG).
7. Who investigates criminal breaches of Financial Sanctions laws?
There are no special authorities in Germany. As with almost all crimes, the public prosecutor's office
investigates here.
8. Are there non-criminal (e.g. administrative or civil) penalties and/or fines for a breach of Financial Sanctions?
Pursuant to Section 19 (6) AWG, the administrative offence may be punished with a fine of up to five hundred thousand euros in the cases of Section 19 (1) AWG, Section 19 (3) no. 1 lit. a AWG and Section 19 (4) AWG 4 sentence 1 no. 1 AWG, and with a fine of up to thirty thousand euros in the other cases.
9. What are the penalties for a non-criminal breach of Financial Sanctions?
Yes, see above.
10. Who investigates non-criminal breaches of Financial Sanctions laws?
The German Federal Bank (Bundesbank) is responsible for the financial sanction laws.
