Implementation of EU sanctions in the light of the situation in Ukraine
The international community has imposed a number of sanctions on Russia. This has happened according to Council Regulation (EU) 2022/259 of 23 February 2022 in the light of Russia’s aggressions that undermine or threaten Ukraine’s territorial integrity, sovereignty and independence. With the said regulation, the EU has introduced a number of targeted sanctions against Russia.
Significance for Danish financial companies
The EU’s sanction regulations are directly applicable to Denmark, which means that Danish financial companies are obliged to comply with these. The sanctions regulations include elements such as freezing and investment bans – so-called financial sanctions. Financial sanctions in the form of freezing of funds mean that funds and economic resources held or owned by the persons or entities subject to the restrictions may no longer be freely available to them. Furthermore, the restrictions mean that neither direct nor indirect funds or financial resources may be made available to the persons and entities covered.
Violation of the Sanctions Ordinance is punishable pursuant to section 110 c of the Criminal Code.
The Danish FSA encourages financial companies to familiarize themselves with EU sanctions regulations, including in particular regarding sanctions that have been or are being introduced on an ongoing basis against Russia. The companies can also stay informed on the Ministry of Foreign Affairs’ website, where they can find links to the EU Sanctions Map , among other things . Finally, companies can find more information about sanctions on the Danish Business Authority’s website. Pursuant to section 47
of the Money Laundering Act, the Danish FSA supervises, PCS. 1, that companies covered § 1, para. 1, nos. 1-13, 19, 23 and 24, and branches, distributors and agents in this country of such foreign companies and persons comply with the law, rules issued pursuant thereto, Regulation 2015/847 / EU of the European Parliament and of the Council of 20 May 2015 on information to be included in remittances and regulations containing rules on financial sanctions against countries, persons, groups, legal entities or bodies.