The EU tightens the legal framework against companies that fail to comply with international sanctions. Spain will reform its Penal Code to adapt to this new directive.
The new EU Directive 2024/1266 obliges member states to penalise non-compliance with international sanctions, such as those imposed on Russia. Spain is already working on a reform of the Criminal Code that provides for prison sentences and fines in the millions for companies that operate with sanctioned entities.
In this context, Silvia Zamorano, Compliance Partner at ECIJA, warns that companies should immediately suspend any suspicious transactions and notify the authorities, in addition to reviewing their compliance programmes. She also stresses that collaboration with the authorities could lead to a mitigation of penalties and reminds that companies can be liable for the actions of third parties if they do not exercise adequate control.
