Binding nature, scope and prohibitions of international sanctions

BINDING NATURE OF INTERNATIONAL SANCTIONS

All natural and legal persons are obliged to comply with and implement international sanctions implemented in the Republic of Lithuania.

It is necessary to take actions required by international sanctions implemented in the Republic of Lithuania and/or to refrain from any action that would result in non-compliance with or avoidance of restrictions and obligations imposed by international sanctions implemented in the Republic of Lithuania.

All natural and legal persons are autonomous and responsible for the proper implementation of international sanctions, and the European Union legislation imposing restrictive measures is directly applicable. All natural and legal persons engaged in economic activities, financial institutions and other entities or organisations established or operating in the State are obliged to comply with the information published on the website of the Office on the links between natural and/or legal persons and entities subject to international sanctions. The implementation of sanctions imposed by the European Union should also take into account guidelines, best practices and other interpretations issued by the European Union. All information on the implementation of international sanctions is publicly available and is published on the website of European Union law and other public documents of the European Union and on the website of the Office.

Natural and legal persons who, in accordance with the requirements of the legal acts imposing international sanctions, have restricted the disposal of funds or economic resources by entities, shall inform the Financial Crimes Investigation Service thereof within 2 working days by e-mail [email protected]

Legal persons and other organisations without legal personality shall inform the Financial Crimes Investigation Service of the fact that their owners or participants are entities subject to financial sanctions, as well as of the fact that a legal person or other organisation without legal personality is managed or controlled by entities subject to financial sanctions, within 2 working days from the date of becoming aware of such information.

The fact of the imposition of international sanctions shall be recorded in public registers or public information systems when data concerning the sanctioned entity or its assets or data describing those assets are processed in that public register or public information system.

The Financial Crimes Investigation Service shall provide information on the decisions taken on sanctioned entities on the basis of their links with entities included in the lists of sanctioned persons to natural and legal persons implementing these sanctions, to the managers of the state registers and state information systems.

THE SCOPE OF IMPLEMENTATION OF INTERNATIONAL SANCTIONS

International sanctions imposed by directlyapplicable European Union law are fully enforceable.

International sanctions imposed by United Nations Security Council resolutions are implemented fully and directly in the Republic of Lithuania.

International sanctions recommended by the General Assembly of the United Nations, the Organisation for Security and Cooperation in Europe, and other international organisations of which the Republic of Lithuania is a member or in which the Republic of Lithuania participates, shall be implemented by the Republic of Lithuania taking into account whether their implementation is necessary to achieve the objectives set out in the Law on International Sanctions.

International sanctions are imposed by directly applicable European Union regulations and Government resolutions, which implement other EU legislation, United Nations resolutions and decisions of the Organisation for Security and Cooperation in Europe.

In certain cases, financial institutions or economic activity entities choose to implement sanctions from third countries (including the United States of America and the United Kingdom), but the international sanctions regime in Lithuania does not apply to such cases. However, it should be noted that, due to the potential extraterritorial impact of sanctions imposed by third countries, non-compliance with such sanctions may lead to negative economic consequences.

PROHIBITION TO ENTER INTO AND PERFORM TRANSACTIONS AND OBLIGATIONS, AND LEGAL CONSEQUENCES OF NON-PERFORMANCE

It is forbidden to enter into transactions and assume new obligations, the performance of which is contrary to the international sanctions implemented in the Republic of Lithuania - such transactions are null and void.

During the period of implementation of international sanctions, it is prohibited to carry out transactions and obligations, the performance of which is contrary to the international sanctions implemented in the Republic of Lithuania.

Transactions entered into and obligations incurred prior to the implementation of the international sanctions in the Republic of Lithuania must be terminated immediately, unilaterally or by agreement of the parties, or suspended during the period of implementation of the international sanctions.

Natural and legal persons shall not be subject to civil liability or shall be exempted from civil liability for non­-performance of transactions and obligations resulting from the implementation of international sanctions, in accordance with the procedure laid down by the legislation of the Republic of Lithuania.

RESPONSIBILITY FOR VIOLATIONS OF INTERNATIONAL SANCTIONS

Natural and legal persons shall be liable for violations of international sanctions in accordance with the procedure established by the Law on International Sanctions and other laws of the Republic of Lithuania.

Legal persons shall be liable for violations of international sanctions in accordance with the Law on International Sanctions, provided that violations committed by legal persons do not give rise to criminal liability for legal persons under the applicable law.

The following sanctions may be imposed on a legal person by the authorities imposing sanctions for breaches of international sanctions:

1. a fine of between 50 and 100 per cent of the value of the goods, services or funds which were the subject of the breach of the international sanctions, but not less than 10 000 EUR;
2. a fine of between 10 000 EUR and 50 000 EUR where the subject-matter of the breach of international sanctions is not goods, services or funds;
3.  where a legal person violates international sanctions repeatedly within one year of the imposition of a measure of sanctions for a violation of international sanctions, or where the value of the goods, services, or funds which were the subject of the violation of international sanctions exceeds 100 000 EUR, a fine of up to 5 per cent of the gross annual revenue, but not less than 100 per cent of the value of the goods, services, or funds which were the subject of the violation of international sanctions, and not less than 20 000 EUR.

Violations of international sanctions may be accompanied by the confiscation of goods or funds that were the object or result of the violation of international sanctions.

A natural person who violates international sanctions implemented in the Republic of Lithuania or restrictive measures established by the laws of the Republic of Lithuania may be subject to administrative liability under Article 515 of the Code of Administrative Offences of the Republic of Lithuania (hereinafter - the CAO). Violation of this Article is subject to punishment by means of a fine from 200 EUR to 6 000 EUR for individuals and 600 EUR to 6 000 EUR for managers or other responsible persons of legal persons.

If an administrative offence under Article 515 of the CAO is committed repeatedly, individuals may be fined from 2 000 EUR to 6 000 EUR, and managers or other responsible persons of legal persons from 4 000 EUR to 6 000 EUR.

The confiscation of the instrument, tool, means, goods or funds which were the object or result of the offence may be imposed along with a fine.

Natural and legal persons may be prosecuted for violations of international sanctions or restrictive measures imposed by the laws of the Republic of Lithuania under Article 123(1) of the Criminal Code of the Republic of Lithuania, which can result in a fine or arrest or imprisonment of up to five years.