Sanctions Legislation Changes | Sanctions Crime and Sanctions Violation | Finland

Sanctions Legislation Changes | Finland
New Legislative Amendments – Sanctions Crime and Sanctions Violation

The Finnish government is proposing amendments to the Criminal Code to implement the obligations of the EU Sanctions Crime Directive at the national level. The directive aims to ensure that violations of sanctions are punishable in all member states and that penalty provisions meet the common EU minimum standard.

Proposed New Provisions on Sanctions Crimes

The following new criminal offenses are proposed to be added to the Finnish Criminal Code:

• Aggravated Sanctions Crime
• Sanctions Crime
• Negligent Sanctions Crime
• Sanctions Violation

At the same time, provisions related to regulatory offenses would be amended so that they no longer cover violations of sanctions.

Entry into Force

The proposed legal amendments are intended to take effect on May 20, 2025, which is the latest deadline for implementing the Sanctions Crime Directive.

What Are Regulatory Offenses in Practice?

Regulatory offenses mainly relate to violations of export and import bans. Typical cases include:

• Providing incorrect information in customs declarations
• Exporting sanctioned goods without customs clearance
• Circumventing export bans through third countries
• Hiding products in vehicles
• Transporting money or goods on behalf of others

There have also been cases where individuals have been misled with false information regarding control and ownership structures. Recently, the methods and channels for violating sanctions have become increasingly complex.

Corporate Criminal Liability and Fines

Corporate criminal liability would apply to sanctions crimes, aggravated sanctions crimes, and negligent sanctions crimes. The maximum corporate fine would be set at five percent of the entity’s turnover, with a minimum of €850,000and a maximum of €40 million.

Exception to the Dual Criminality Requirement

The amendments introduce an exception to the dual criminality requirement. This means that a Finnish citizen or a person equivalent to one could be convicted of a sanctions crime even if the act was not criminalized in the country where it was committed.

Sanctions Violation and Its Significance

A sanctions violation refers to minor infractions, such as violations involving low-value assets or procedural breaches, which serve more administrative than criminal law purposes.

Whistleblower Protection for Reporting Sanctions Violations

Individuals who report sanctions violations would be protected under the Whistleblower Protection Act, which guarantees certain rights and safeguards against potential retaliatory actions.

Objective of the Amendments

The goal of these legal amendments is to strengthen compliance with sanctions and enhance their enforcement both nationally and at the EU level.

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Our international trade law experts, Liene Krumina and Oscari Seppälä, are available to assist you. Please feel free to get in touch.