The right of the Sanctions Monitoring Board to issue administrative penalties

On the 23rd April 2020, the Sanctions Monitoring Board (the “Board”) issued a Circular addressing the Administrative Penalties under the National Interests (Enabling Powers) Act (the “Act”). Indeed, the Board highlighted that by means of Act XX of 2020, dated 23rd April 2020, certain amendments to the Act were undertaken.
These amendments permit the Sanctions Monitoring Board to issue administrative penalties for any breach of Article 17(6) of the Act, which is applicable to any legal or natural person administering a relevant activity or relevant financial business. Article 17(6) provides inter alia for ongoing sanctions monitoring, the obligation to have adequate internal controls and procedures, and notifying the Board in case targeted property is identified.
In this regard, the Board has the right to issue administrative penalties at first hand without resorting to court proceedings. The penalties may be forced as a one-time fixed penalty, or as a daily accumulative penalty, or both ranging from one hundred euro up to one thousand euro. Besides issuing a penalty, the Board has also the power to order any person to take the necessary actions to correct the breach.
Please feel free to contact us should you require further information in relation to sanctions monitoring.