With 543 votes in favour, 45 against, and 27 abstentions, the European Parliament has adopted a directive, agreed with member states, on criminalising the violation and circumvention of EU sanctions. It will introduce a common definition of, and minimum penalties for, violations.

EU sanctions can consist of freezing funds and assets (including crypto-assets), travel bans, arms embargoes, and restrictions on business sectors. While sanctions are adopted at the EU level, enforcement relies on member states, amongst which definitions of sanction violation and associated penalties vary.

The new law sets consistent definitions for violations, including not freezing funds, not respecting travel bans or arms embargoes, transferring funds to persons subject to sanctions, or doing business with state-owned entities of countries under sanction. Providing financial services or legal advisory services in violation of sanctions will also become a punishable offence.

The law also defines the…