On 10 October 2025, the Italian Government submitted to Parliament the draft legislative decree implementing Directive (EU) 2024/1226 on the definition of criminal offences and penalties for the violation of Union restrictive measures, which mandates the criminalisation of violations of EU restrictive measures. This long-awaited step marks a turning point in Italy’s approach to sanctions enforcement, aligning its legal framework with the EU’s Common Foreign and Security Policy (CFSP).
Sanctions Violations Enter the Criminal Code
If confirmed, this draft introduces a new Chapter I-bis into the Italian Criminal Code (Articles 275-bis to 275-quinquies), explicitly criminalising the following conduct:
- Violation
- Evasion
- Circumvention
of EU restrictive measures. These offences are now framed as crimes against the EU’s CFSP, elevating their seriousness and paving the way for more consistent enforcement across Member States.
Corporate Liability Under Legislative Decree 231/2001
The decree also amends Legislative Decree 231/2001, adding a new predicate offence under Article 25-octies(2): “Offences relating to the violation of EU restrictive measures.” This means companies can now be held criminally liable for sanctions breaches, with direct implications for their compliance models and governance structures.
Turnover-Based Sanctions: A Paradigm Shift
One of the most impactful innovations is the introduction of turnover-based pecuniary sanctions for corporate entities. In serious cases, fines may range from 1% to 5% of global turnover, replacing the traditional “quota” system. This change:
- Aligns Italy with EU standards for effective, proportionate, and dissuasive penalties
- Renders the current EUR 1.5 million cap obsolete
- Introduces a risk of significant financial exposure for multinational companies
Strategic Implications for Businesses
This legislative shift is not just a technical update — it’s a strategic inflection point. Companies operating in Italy must:
- Update their 231 Models to reflect the new predicate offence and ensure adequacy in light of potential criminal proceedings
- Reassess internal controls and risk assessments related to sanctions compliance, especially in high-risk sectors such as trade, finance, and dual-use goods
- Prepare for increased scrutiny and enforcement, as the decree signals a more aggressive posture from Italian authorities
Conclusion: Sanctions Compliance Is Now Criminal Law
Although Italy missed the original transposition deadline earlier this year, this draft decree represents a watershed moment in sanctions enforcement. If confirmed, it will reshape the compliance landscape, making sanctions violations not just a regulatory risk – but a criminal liability.
For legal teams, compliance officers, and boards, the message is clear:
Sanctions are serious. The consequences are real. The time to act is now.
Ongoing Monitoring and Updates
This legislative development is part of a broader evolution in EU sanctions enforcement, and its implementation in Italy will have far-reaching implications for corporate compliance and criminal liability.
We will continue to monitor the legislative process closely and update this article as new details emerge or the draft decree is amended. Stay tuned for further insights and practical guidance as Italy moves toward full alignment with the EU’s sanctions framework.
