EU: France advances first steps to transpose the EU Sanctions Enforcement Directive

France has taken its first formal step toward implementing Directive (EU) 2024/1226, which requires all EU Member States to criminalise the violation and circumvention of EU restrictive measures. The Directive was adopted to address persistent divergences in national enforcement regimes and to ensure that breaches of EU sanctions are treated consistently as criminal offences across the European Union (EU).

The Directive establishes a minimum harmonisation of offences and penalties, covering conduct such as providing funds or economic resources, directly or indirectly, to designated persons and participating in schemes designed to circumvent EU sanctions. France already has a solid enforcement framework through Article 459 of the French Customs Code, which criminalises the violation of EU restrictive measures. Current sanctions include up to five years’ imprisonment, confiscation of the corpus delicti, confiscation of the means of transport used to commit the offence, confiscation of assets derived from or intended for the offence, and fines calculated on the basis of the value involved (with multipliers applicable to legal persons).

Despite this existing framework, targeted legislative amendments are required for full alignment with the Directive. On 3 March, a draft bill was submitted to the French National Assembly. The bill seeks to create a dedicated section within the French Customs Code specifically addressing offences relating to EU restrictive measures, replacing the previous mixed treatment of these offences alongside those relating to foreign exchange regulations.

The bill adapts French law in four key steps:

1. Restating key concepts
   • The draft reintroduces definitions such as asset, economic resources and asset freeze, ensuring consistency with the terminology used in EU restrictive measures.
2. Defining in detail the conduct that constitutes violations of EU restrictive measures
   • The bill expands on actions covered by EU restrictive measures, largely reflecting the terminology used in EU regulations, including the purchase, sale, supply or transit of goods, brokering services and technical assistance.
   • It clarifies the concept of circumvention. Practices such as the use of intermediaries, restructuring transactions, or providing false or misleading information are explicitly covered.
3. Strengthening and expanding the penalty framework for both natural and legal persons
   • The bill aligns French law with the Directive’s harmonised sanctions thresholds. It also introduces new offence categories, including violations committed with gross negligence, which is not currently a recognised standard in French criminal law. It further clarifies the distinction between intentional violations, violations committed with gross negligence and violations committed in the absence of either.
     • For individuals, main sanctions include:
       • In case of intentional violation or gross negligence in the context of sectoral trade restrictions, five years’ imprisonment, a fine between the value of the assets involved and twice that value, and the confiscation of the assets, funds or economic resources concerned, the means of transport used to commit the offence and any assets constituting the direct or indirect proceeds of the offence or intended for its commission
       • If the offence concerns dual‑use goods, imprisonment of up to ten years and a fine of up to three times the value of the fraudulent object.
       • If the offence is committed in an organised group, imprisonment up to 10 years, fine up to ten times the value of the fraudulent object
       • Additional penalties, including a prohibition on exercising a commercial or industrial profession or managing or controlling a commercial undertaking, permanently or for up to five years.
       • In the absence of intention or gross negligence, a fine of EUR 15,000 and confiscation of the goods, funds or economic resources at stake.
     • For legal persons, the sanction include:
       • In case of intentional violation or gross negligence in the context of violation of sectoral trade sanctions, legal persons are subject to a fine of 5% of their worldwide turnover for the financial year preceding the commission of the offence, or EUR 40 million when such turnover cannot be determined.
       • If the offence is committed in an organised group, the applicable fine may reach 10% of worldwide turnover for the financial year preceding the offence, or EUR 80 million when such turnover cannot be determined.
       • Additional penalties apply pursuant to Article 131‑39 of the Criminal Code, which include dissolution, placement under judicial supervision, closure of establishments, exclusion from public procurement, and other corporate penalties applicable to legal persons. Article 459‑6 explicitly incorporates these penalties by reference.
       • In the absence of intention or gross negligence, a fine of EUR 15,000 and confiscation of the goods, funds or economic resources at stake.
4. Adjusting investigative procedures and creating cooperation incentives.
   • One of the most notable innovations is the introduction of an exemption from sanctions for individuals who alert the authorities early enough to prevent the offence and, where applicable, identify other perpetrators or accomplices. Individuals who have already committed the offence may benefit from a reduction of their custodial sentence by half if they provide timely and useful information. This introduces, for the first time in French sanctions enforcement, a structured early cooperation mechanism aimed at improving deterrence and detection.

France has therefore entered the legislative phase to transpose the Directive. However, it remains significantly behind the original transposition deadline of 20 May 2025, and the European Commission has already opened infringement proceedings against 18 Member States, including France, for failure to transpose the Directive on time. Substantial parliamentary work remains before the bill can be enacted.