In March of 2023, The Parliament of the Republic of Lithuania adopted amendments to the Criminal Code and Code of Administrative Offences aimed to make legal persons liable for breaches of international sanctions. an effective mechanism for imposing fines on legal persons for breaches of international sanctions. The amendments stipulate that tougher punishment will be handed out for violations of both international sanctions and the restrictive measures imposed by national authorities. ECOVIS ProventusLaw sanctions experts have prepared a brief overview of the most important changes to the above mentioned laws, which will come into force on April 15, 2023.
Amendments to the Criminal Code and Code of Administrative Offences
According to the Government of the Republic of Lithuania, current fines established in Article 515 of the Code of Administrative Offenses does not deter companies from committing a repeated violation, Currently, the goods are not detained and confiscated, but returned to the person, which makes it possible for individuals to repeatedly try to violate international sanctions if a violation of international sanctions related to the import, export or transit of goods is detected.. In addition, many exporters from foreign countries choose to declare the sanctioned goods not in their own country, but in Lithuania. In this way, it is considered that they and their country do not violate international sanctions, but they try to export the sanctioned goods from Lithuania.
Therefore, the Government of the Republic of Lithuania, have decided to change Article 515 of the Code of Administrative Offenses. The main amendments to the Code of Administrative Offenses are:
1) The liability of managers of legal entities or other responsible persons is provided for violations of international sanctions or restrictive measures established by Lithuanian laws:
a fine for persons from 200 to 6,000 EUR and for managers of legal entities or other responsible persons – from 600 to 6,000 EUR.
2) Repeated misconduct would entail a fine for persons from 2,000 to 6000 EUR, and for managers of legal entities or other responsible persons – from 4,000 to 6000 EUR. Confiscation is also possible: the tool, means, as well as goods or funds that were the subject of the offense or the result of the activity.
Criminal liability is also provided for violations of the restrictive measures established by the laws of the Republic of Lithuania. Liability: fine, arrest, or imprisonment for up to 5 years.
Amendments to the Law of the Republic of Lithuania on International Sanctions
The amended Law on Sanctions introduces definition of Restrictive Measures, provides conditions on the imposition of restrictive measures and proposes specific fines for non-compliance with international sanctions.
As of 15 of April 2023, amendments come into force that will strengthen the application of the international sanctions regime in the Republic of Lithuania. The amendment to the Law on International Sanctions establishes sanctions that can be applied to a legal entity:
1) a fine of between 50 and 100 % of the value of the goods, services or funds that were the subject of the violation of international sanctions, but not less than 10,000 EUR;
2) a fine of between 10000 EUR and 50000 EUR where the subject of the infringement of international sanctions is not goods, services or funds;
3) if a repeated infringement occurs within 1 year of the imposition of sanctions OR where the value of the goods, services or funds that were the subject of the infringement of international sanctions is more than 100 000 EUR, a fine of up to 5 % of the gross annual income is imposed, but not less than 100 % of the value of the goods, services or funds that were the subject of the violation of international sanctions, and not less than 20,000 EUR. The instrument, as well as the goods or funds that were the subject of misconduct or the result of the activity, may be confiscated.
If you need a consultation regarding the applicable laws in the field of sanctions, please do not hesitate to contact us.
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