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Legal Alert | International sanctions

  • Slovakia

    04-03-2022

    What are international sanctions, what is their legal basis and why should they be of interest to your company?

    International sanctions are restrictive measures that can affect selected states, legal entities or natural persons.

    In the Slovak Republic, the application of international sanctions is set by the European Union (overview of current sanctions at the EU level), and by national laws implementing sanctions, in particular Act No. 289/2016 Coll., on the Implementation of International Sanctions.

    The legal obligations of natural and legal persons in connection with the application of international sanctions, which may also apply to your company, include:

    • a notification obligation in relation to property that is subject to sanctions – if a person learns that they have property that is subject to an international sanction;
    • a notification obligation in relation to contracts, the obligation to examine whether the parties to the contract or the subject matter of the contract are not subject to sanctions – if a person suspects that one of the parties to the contract is subject to international sanctions or that the subject matter of the contractual relationship is or should be property subject to an international sanction.

    In the above cases, you are obliged to immediately report this fact to the competent authority and the Slovak Information Service.

    We draw particular attention to the fact that ignorance of the relevant facts regarding sanctions is insufficient; it is necessary to prove that the entity has taken the necessary precautionary measures to determine such facts.

    Fines and liability in case of non-compliance

    In the event of non-compliance with the obligations imposed by law, or other breaches of the law or sanctions adopted at the EU level, you may face:

    • a fine of between EUR 5,000 and EUR 66,400 in the event of a natural person's failure to notify;
    • a fine of between EUR 50,000 and EUR 132,800 in the event of a sole trader's or legal entity's failure to notify;
    • a fine of between EUR 132,800 and EUR 1,659,700 in the event of a sole trader's or legal entity's failure to notify, if, at the same time, it has gained a benefit for itself or another exceeding EUR 16,600 or has caused damage in excess of EUR 16,600 or another particularly serious consequence.

    Be advised that in some circumstances a violation of international sanctions or failure to report relevant facts may fulfil some of the elements of a criminal offence.

    Conclusion

    If you do business and your business partner, its management, beneficial owners, etc. have any connection with a country against which international sanctions have been imposed, we recommend that you check whether the sanctions also apply to your business relationship.

    We also provide a link to a clear map maintained by the European Commission, which will make it easier for you to check your business partners in terms of international sanctions.

     

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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