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International Sanctions Act

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International Sanctions Act - content
Issuer:Riigikogu
Type:act
In force from:15.03.2022
In force until: In force
Translation published:08.03.2022

International Sanctions Act

Passed 20.02.2019
RT I, 19.03.2019, 11
Entry into force 01.01.2020

Amended by the following legal instruments (show)

PassedPublishedEntry into force
17.06.2020RT I, 10.07.2020, 120.07.2020, in part 01.01.2021; amended in part [RT I, 21.11.2020, 1]
12.11.2020RT I, 21.11.2020, 101.01.2021, the words „financial intelligence unit“ and „Financial intelligence unit” have been replaced throughout the text with the words „Financial Intelligence Unit” in the respective case
23.02.2022RT I, 08.03.2022, 115.03.2022, in part 15.05.2022

Chapter 1 General provisions 

§ 1.  Scope of application of Act

  This Act regulates the national implementation of international sanctions, the specifications for the implementation and application of financial sanctions, the procedure for monitoring the application of financial sanctions, the imposition of the sanctions of the Government of the Republic and the liability in the event of a violation of requirements arising from this Act.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

§ 2.  Application of other Acts

 (1) The provisions of the Administrative Procedure Act apply to administrative proceedings prescribed in this Act, taking account of the specifications provided for in this Act.

 (2) The Money Laundering and Terrorist Financing Prevention Act shall be applied to matters not regulated in Chapters 2, 3 and 5 of this Act, including upon preparation and application of risk assessment, rules of procedure and internal control rules, and the application of due diligence measures, taking account of the specifications provided for in this Act.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

§ 3.  International sanctions

 (1) International sanctions are an essential tool of foreign policy aimed at supporting the maintenance or restoration of peace, international security, democracy and the rule of law, following human rights and international law or achieving other objectives of the United Nations Charter or the Common Foreign and Security Policy of the European Union.

 (2) International sanctions are imposed with regard to a state, territory, territorial unit, regime, organization, association, group or person by a resolution of the United Nations Security Council, a decision of the Council of the European Union or any other legislation imposing obligations on Estonia.

 (3) International sanctions may ban the entry of a subject of an international sanction in the state, restrict international trade and international transactions, and impose other prohibitions or obligations.

§ 4.  Sanctions of the Government of the Republic

  The sanctions of the Government of the Republic of is a tool of foreign policy which may be imposed in addition to the objectives specified in subsection 1 of § 3 of this Act in order to protect the security or interests of Estonia.

§ 5.  Subject of international sanctions

  The subject of international sanctions is any natural or legal person, entity or body, designated in the legal act imposing or implementing international sanctions, with regard to which the international sanctions apply.

§ 6.  Violation of international sanctions

  Violation of international sanctions is a failure to perform an obligation or violation of a prohibition provided for in a legal act implementing international sanctions specified in § 9 of this Act.

§ 7.  Nullity of transaction violating international sanctions

 (1) A transaction violating international sanctions shall be void.

 (2) If an authorization for entry into a transaction in accordance with subsection 2 of § 11 of this Act is granted retrospectively, the transaction shall become valid as of the date of the transaction.

§ 8.  Provisional implementation of international sanctions

  International sanctions imposed by a resolution of the United Nations Security Council are implemented under the conditions laid down in the resolution with regard to the subjects of the international sanctions listed by the committee established on the basis of the resolution until the regulation of the Council of the European Union is updated or adopted.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

§ 81.  Making a proposal for designation of natural or legal person as subject of international sanctions

 (1) The Ministry of Foreign Affairs submits, where necessary, a proposal to the committee established on the basis of a resolution of the United Nations Security Council or the Council of the European Union to designate a natural or legal person, entity or body as the subject of an international sanctions.

 (2) The Ministry of Foreign Affairs submits, where necessary, a proposal to the committee established on the basis of a resolution of the United Nations Security Council or the Council of the European Union to remove a natural or legal person, entity or body that does not meet the conditions set out in the resolution or the decision of the Council of the European Union from the list of subjects of international sanctions.

 (3) Before submitting the proposal, the Ministry of Foreign Affairs consults with security authorities and other relevant agencies, committees and authorities.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

Chapter 2 National implementation of international sanctions  

§ 9.  Legal act implementing international sanctions

 (1) For the purposes of this Act, legal act implementing international sanctions is a treaty, a regulation of the Council of the European Union or the act of law of the Republic of Estonia on the basis of which the obligations and prohibitions prescribed in the legislation on the imposition of international sanctions shall be applied.

 (2) If it is not possible to apply international sanctions on the basis of the legislation specified in subsection 1 of this section, the Government of the Republic shall, on the proposal of the Ministry of Foreign Affairs, establish an order or regulation implementing international sanctions to the extent necessary for national implementation of international sanctions.

§ 10.  Obligations of ministries

 (1) The national implementation of international sanctions shall be coordinated by the Ministry of Foreign Affairs.

 (2) Ministries shall initiate the proceedings of adopting legislation necessary for the implementation of international sanctions in their area of ​government, shall ensure the conditions necessary for the implementation and application of international sanctions, and shall co-operate with the Ministry of Foreign Affairs for the proper implementation of international sanctions.

§ 11.  Obligations of competent authority

 (1) The competent authority shall respond to inquiries related to international sanctions, issue administrative acts and carry out proceedings, as provided for in the legislation on imposition or implementation of international sanctions.

 (2) If the legal act implementing international sanctions enables making exemptions or allows provision of services or carrying out the transactions or proceedings only on the basis of an authorization, the competent authority shall grant such authorization pursuant to the procedure provided for in § 13 of this Act unless otherwise provided by sectoral legislation.

 (3) Competent authorities include, inter alia:
 1) the Ministry of the Interior or an agency in the area of ​government of the Ministry of the Interior authorized for such purpose – in the case of an entry ban;
 2) the Police and Border Guard Board – in the case of the restrictions on the stay, residence and employment;
 3) the Financial Intelligence Unit – in the case of financial sanctions;
 4) the Tax and Customs Board – in the case of a ban on the import and export of goods;
 5) the Ministry of Economic Affairs and Communications – in the case of a ban on the provision of services other than financial services and goods-related services.

 (4) If it is not possible to determine the competent authority on the basis of legislation, the competent authority shall be assigned by an order or regulation of the Government of the Republic on the proposal of the Ministry of Foreign Affairs.

§ 12.  Specifications applicable to authorisation for carriage of goods

 (1) The provisions of the Strategic Goods Act concerning licenses shall apply to the authorisation for carriage of goods, which is issued on the basis of subsection 2 of § 11 of this Act by the Strategic Goods Commission specified in § 8 of the Strategic Goods Act.

 (2) A state fee for the review of an application for the authorisation for carriage of goods specified in subsection 1 of this section shall be paid at the rate provided for by the State Fees Act.

§ 13.  Application for and issue of authorisation

 (1) An application for the grant of exemption or issue of authorisation specified in subsection 2 of § 11 of this Act shall be submitted to the competent authority.

 (2) The competent authority shall issue the authorisation specified in subsection 2 of § 11 of this Act within thirty days as of the receipt of the application. The granting of authorization is subject to the approval of the Ministry of Foreign Affairs.

 (3) An application submitted for issue of authorisation for humanitarian aid shall be given priority treatment by the competent authority.

 (4) The granting of or refusal to grant authorisation shall be subject to the conditions provided by the legislation on imposition or implementation of international sanctions.

 (5) An authorization shall not be transferable unless otherwise provided for in the authorization.

 (6) The minister in charge of the policy sector may, by a regulation, establish the form of an application and authorisation for making an exemption or granting the authorisation specified in subsection 2 of § 11 of this Act.

Chapter 3 Specifications for implementation and application of financial sanctions  
[RT I, 08.03.2022, 1 - entry into force 15.03.2022]

§ 14.  Financial sanctions

  For the purposes of this Act, financial sanctions are international sanctions which:
 1) obligate the freezing of funds and economic resources of the subject of international financial sanctions;
 2) prohibit the making available of financial and economic resources to the subject of the financial sanctions;
 3) prohibit the granting of loans and credit under the conditions prescribed by the legislation on implementation of international sanctions;
 4) prohibit the opening and use of a deposit, payment, securities or other account under the conditions prescribed by the legislation on implementation of international sanctions;
 5) prohibit the securities transactions under the conditions provided for in the legislation on implementation of international sanctions;
 6) prohibit the conclusion of an insurance contract under the conditions prescribed by the legislation on implementation of international sanctions;
 7) prohibit investing under the conditions prescribed by the legislation on implementation of international sanctions; or
 8) prohibit, under the conditions provided for by the legislation on implementation of international sanctions, the starting or continuing of business relationships, consultancy or the provision of other financial services related to the activities listed above.

§ 15.  Obligation to freeze in case of joint ownership

 (1) If the legislation on implementation of financial sanctions requires the freezing of funds and economic resources of a subject of financial sanctions, the financial sanctions shall be applied also in the case the funds and resources are jointly owned by several persons and at least one of them is a subject of financial sanctions.

 (2) A person who is not a subject of financial sanctions, but whose funds and economic resources have been frozen pursuant to subsection 1 of this section, may apply for authorisation from the Financial Intelligence Unit to use their share in the joint ownership.

§ 16.  Notification of general public of financial sanctions

 (1) The Financial Intelligence Unit shall immediately publish or make available on its website information regarding the imposition, amendment or termination of financial sanctions.

 (2) The Financial Intelligence Unit shall prepare and publish, at least once a year, a consolidated overview of the implementation of financial sanctions in Estonia, which shall include, inter alia, information concerning:
 1) identified subjects of financial sanctions;
 2) financial sanctions applied;
 3) exemptions made or authorisations granted on the basis of subsection 2 of § 11 of this Act.

§ 17.  Rights of person regarding to whom financial sanctions have been applied

  A person with regard to whom financial sanctions have been applied shall have the right to submit an application to the Financial Intelligence Unit for verification whether the application of sanctions has been lawful.

§ 18.  Inspection obligation of Financial Intelligence Unit

 (1) Upon receipt of an application specified in § 17 of this Act or a notice pursuant to subsection 3 of § 19 and subsection 1 and 4 of § 21 of this Act, the Financial Intelligence Unit shall, within ten working days:
 1) verify whether the person who has submitted the application or has been identified is a subject of financial sanctions;
 2) verify whether it is a transaction or act violating financial sanctions;
 3) verify whether the financial sanctions have been applied lawfully;
 4) [Repealed – RT I, 08.03.2022, 1 – entry into force 15.03.2022]

 (2) In justified cases, the Financial Intelligence Unit may extend the term provided for in subsection 1 of this section by up to 60 days where it is necessary for the inspection specified in subsection 1 of this section or where the need for an additional term arises from a third party. The Financial Intelligence Unit submits an explanation regarding the extension of the term to the submitter of the application or notice at the latest two working days before the expiry of the term provided for in subsection 1 of this section.

 (3) The Financial Intelligence Unit notifies the submitter of the application or notice of the results of the inspection specified in subsection 1 of this section within two working days.

 (4) Where the Financial Intelligence Unit confirms that it is a subject of a financial sanction or a transaction or act violating a financial sanction or the financial sanction has been lawfully applied, and a person with regard to whom a financial sanction is applied has submitted an application specified in § 17 of this Act to the Financial Intelligence Unit, the Financial Intelligence Unit also notifies, in writing within two working days, the subject of the financial sanction or the person concerned of the results of the inspection specified in subsection 1 of this section and of the following in respect of the measures taken with regard to them:
 1) the exact scope and content;
 2) the legal basis;
 3) the date of commencement;
 4) the procedure for contestation;
 5) the bases and procedure for making exceptions.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

§ 19.  Obtaining additional information and notification obligation

 (1) A natural or legal person, who has established that a person who has or is planning to have a business relationship with them is a subject of financial sanctions, or a transaction or act intended or carried out by that person violates financial sanctions, shall apply financial sanctions and notify the Financial Intelligence Unit immediately thereof.

 (2) A natural or legal person who has doubts as to whether a person who has or is planning to have a business relationship with them is a subject of financial sanctions, or the transaction or act intended or carried out by that person violates financial sanctions, shall apply financial sanctions and obtain additional information concerning the circumstances which enable to establish whether the transaction or act intended or carried out is in breach of financial sanctions.

 (3) Where, on the basis of additional information, a natural or legal person identifies a subject of financial sanctions, or that a transaction or act intended or carried out by the person violates financial sanctions or additional information does not enable identification thereof, the person shall apply financial sanctions and immediately notify the Financial Intelligence Unit thereof.

§ 20.  Person with special obligations

 (1) A person with special obligations is:
 1) a credit institution within the meaning of the Money Laundering and Terrorist Financing Prevention Act;
 2) a financial institution within the meaning of the Money Laundering and Terrorist Financing Prevention Act, except the European Central Bank and the central banks of the Contracting States of the European Economic Area;
 3) a virtual currency service provider within the meaning of the Money Laundering and Terrorist Financing Prevention Act;
[RT I, 10.07.2020, 1 – entry into force 20.07.2020]
 4) a person with the status of an account operator within the meaning of the Securities Register Maintenance Act and the Central Securities Depository if the person arranges for the opening of securities accounts and provides services related to registry operations without intermediation of an account operator;
 5) a branch of a foreign service provider entered in the Estonian commercial register providing the same type of service as the agencies specified in clauses 1–4 of this subsection.

 (2) If a person with special obligations has more than one member of the management board, the person with special obligations appoints a member of the management board who is responsible for the compliance of the person with special obligations with the obligations provided for in §§ 21˗23 of this Act and for the performance of the legislation and instructions established on the basis of this Act.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

 (3) A person with special obligations appoints a person in charge of performing the tasks provided for by this Act, including a person who is responsible for the application of financial sanctions, and forwards the contact data of the person to the Financial Intelligence Unit and Financial Supervision Authority. The provisions of § 17 of the Money Laundering and Terrorist Financing Prevention Act concerning the contact person apply to the responsible person, taking into account the specifications provided for in this Act.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

 (4) A member of the management board or the head of branch of a person with special obligations is responsible for the appointment of a responsible member of the management board and the responsible person specified in subsections 2 and 3 of this section.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

§ 21.  Obligations of person with special obligations

 (1) Upon the entry into force, amendment or termination of financial sanctions, a person with special obligations shall verify whether the person who has or is planning to have a business relationship with them is a subject of financial sanctions. If the person with special obligations identifies a person who is a subject of financial sanctions or that the transaction or act intended or carried out by them is in breach of financial sanctions, the person with special obligations shall apply financial sanctions and immediately inform the Financial Intelligence Unit thereof.

 (11) In order to identify a subject of the financial sanction and apply financial sanctions, a person with special obligations applies due diligence measures provided for in clauses 1–4 of subsection 1 of § 20 of the Money Laundering and Terrorist Financing Prevention Act upon establishing business relationships and in the course of the business relationship, monitors the business relationship specified in clause 6 of the same subsection, taking into account the risks inherent in their activities and the international sanction.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

 (12) Upon entry into force, amendment or expiry of a financial sanction, a person with special obligations immediately updates the lists of subjects of international sanctions used by them.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

 (2) If a person with special obligations has doubts whether a person who has or is planning to have a business relationship with them is a subject of financial sanctions or that a transaction or act which is planned or carried out by them violates financial sanctions, the person with special obligations shall apply financial sanctions and the due diligence measures as follows:
 1) collect additional information as to whether the person who has or intends to have the business relationship with them is a subject of financial sanctions or whether a transaction or act which is planned or carried out violates financial sanctions and verify it on the basis of supporting documents, data or information from a reliable and independent source;
 2) collect additional information regarding the purpose and nature of the business relationship, transaction or act and verify it on the basis of additional documents, data or information from a reliable and independent source.

 (3) A person with special obligations shall also apply the due diligence measures provided for in subsection 2 of this section in the event of a risk or suspicion of a violation of a financial sanction.

 (4) If, as a result of application of due diligence measures specified in subsection 2 of this section, the person with special obligations identifies a subject of the financial sanction or that the transaction or act which is planned or carried out by them violates financial sanctions, or if additional information obtained upon application of due diligence measures does not enable to identify it, as well as in the case of the suspicion of violation of financial sanction specified in subsection 3 of this section, the person with special obligations shall inform the Financial Intelligence Unit thereof and of the financial sanction applied.

 (5) The form of the notice to be submitted to the Financial Intelligence Unit for compliance with the notification obligation based on subsections 1 and 4 of this section and the instruction for performance thereof shall be established by a regulation of the minister in charge of the policy sector.

§ 22.  Collection and storage of data

 (1) A person with special obligations collects and preserves information collected upon compliance with the requirements of § 21 of this Act within five years as of the termination of the business relationship.

 (2) The stored data must enable an exhaustive and immediate response to inquiries of the Financial Intelligence Unit or, in accordance with legislation, to inquiries of other supervisory authorities, investigative bodies or courts, including whether the person with special obligations has or has had a business relationship with the person specified in the inquiry and what is or was the nature of the relationship or whether the service was provided to the person specified in the inquiry.

 (3) If investigation or court proceeding have been initiated in connection with a violation of a financial sanction or the financial sanction has been applied for the period longer than five years, the term provided for in subsection 1 of this section is extended until the investigation, court proceeding or financial sanction is terminated.

 (4) A person with special obligations is permitted to process personal data collected upon application of this Act only for the purpose of applying an international sanction which is considered a matter of public interest under Regulation (EU) 2016/679 of the European Parliament and of the Council on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 04.05.2016, pp. 1–88) and such data may not be further processed in a way which is incompatible with that purpose, such as for marketing purposes.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

§ 221.  Risk mitigation and risk management system of international sanction

 (1) The risk mitigation and risk management system of an international sanction is a set of documents and activities described therein and information technology tools aimed at ensuring the application of an international sanction, allocating appropriate resources and training personnel in order to prevent violation or circumvention of an international sanction.

 (2) On the basis of risk appetite and risk assessment, a person with special obligations creates their risk mitigation and risk management system of international sanction, documents and updates the system and its components and takes account of them upon performing the functions provided for in this Act.

 (3) The risk mitigation and risk management system of an international sanction contains at least the following components:
 1) the general strategy for risk mitigation and risk management;
 2) determining and updating risk appetite and risk assessment;
 3) establishing and updating the rules of procedure and instructions;
 4) the procedure for application of due diligence measures, their scope and implementation;
 5) operating in the situations specified in subsections 1–4 of § 21 of this Act;
 6) collecting and storing data;
 7) carrying out internal control;
 8) training employees.

 (4) A person with special obligations must provide training for employees whose duties include the establishment of business relationships or the making of transactions on the performance of obligations arising from this Act. Training takes place upon commencement of work by the employee and regularly thereafter or as necessary. The training includes at least the information which deals with the risk assessment of international sanction and its results, the obligations prescribed in legislation and the rules of procedure, the typology of breaches of the international sanction, state-of-the-art methods of circumventing international sanctions and the risks involved, as well as personal data protection requirements.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

§ 23.  Rules of procedure and internal control rules

 (1) A person with special obligations shall establish rules of procedure in writing or in a form which can be reproduced in writing that ensure the organizational structure enabling immediate identification of the entry into force, modification or termination of financial sanctions, and which include instructions at least on:
 1) how to identify a subject of financial sanctions and the transaction or act violating financial sanctions;
 2) how to act in the event of suspicion concerning identification of a subject of financial sanctions or a transaction or act violating financial sanctions;
 3) how to identify the risk of a breach of financial sanctions and the action to be taken in the event of such a finding;
 4) how to apply the due diligencese measures on the basis of this Act;
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
 5) how to comply with the notification obligation provided for in subsections 1 and 4 of § 21 of this Act;
 6) how to store data provided for in § 22 of this Act and to make this data available.

 (2) In order to verify compliance with the rules of procedure, the person having special obligations shall establish internal control rules, which shall describe, inter alia, the frequency and procedure of internal control and the procedure for storing the results.

 (3) A person with special obligations shall organize the performance and application of the rules of procedure and internal control rules by the members of the staff of the person with special obligations.

 (4) The minister in charge of the policy sector may establish by a regulation more detailed requirements concerning the rules of procedure of credit and financial institutions, internal control rules and the implementation thereof.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

§ 24.  Obligations of legal service providers

 (1) Subsections 1, 1¹ and 2–4 of § 21 of this Act apply to notaries, lawyers, enforcement agents, interim trustees in bankruptcy and other legal service providers if they are acting as representatives of their client in a financial or immovable property transaction on behalf of and at the expense of the client, instructing the planning or implementation of the transaction or carrying out a professional act which is related to:
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
 1) the purchase or sale of immovable or a business or shares or stocks of a company;
 2) the management of money, securities or other assets of a client;
 3) the opening or management of payment, savings or securities accounts;
 4) the acquisition of funds necessary for foundation, operation or management of a company or
 5) foundation, operation or management of a company, foundation, trust or legal arrangement.
[RT I, 10.07.2020, 1 – entry into force 20.07.2020]

 (2) The obligation to notify provided for in subsections 1 and 4 of § 21 of this Act does not apply to a legal service provider if the provider assesses the legal situation of the client, defends or represents the client in court, challenge or other such proceedings, including advising the client on commencement of proceedings or prevention thereof regardless of whether the information was received before, in the course of or after the proceedings.

§ 25.  Obligations of registrar

 (1) Within the limits of their competence, financial sanctions shall be imposed by the controllers or processors (hereinafter registrar) of the following registers:
 1) register of European patents valid in Estonia;
 2) register of utility models;
 3) register of trademarks and service marks;
 4) land register;
 5) ship’s registration book;
 51) the first register of bareboat chartered ships;
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
 52) the second register of bareboat chartered ships;
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
 53) the database of beneficial owners;
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
 6) register of non-profit organisations and foundations;
 7) patent register;
 8) national traffic register;
 9) register of industrial designs;
 10) aircraft register;
 11) Estonian Central Register of Securities;
 12) Commercial Register.

 (2) The registrar shall refuse to make an entry that violates financial sanctions.

 (3) The registrar shall designate a person who, within the limits of his or her competence, shall organize the implementation of financial sanctions and shall forward the contact details of the person to the Financial Intelligence Unit.

 (4) The registrar shall inform the Financial Intelligence Unit of the identification of the subject of a financial sanction or of a transaction or act which violates financial sanctions, using the form established on the basis of subsection 5 of § 21 of this Act.

§ 26.  Release from liability

  The compliance with the obligation to notify specified in subsections 1 and 3 of § 19 and susbections 1 and 4 of § 21 of this Act shall not violate the confidentiality requirement prescribed by law or contract and the liability prescribed by law or contract for the disclosure of information shall not be applied. Any agreement derogating from this provision shall be null and void.

Chapter 4 Sanctions of Government of Republic  

§ 27.  Imposition of sanctions of Government of Republic

 (1) The sanctions of the Government of the Republic areimposed by a regulation of the Government of the Republic on the proposal of the Ministry of Foreign Affairs. The regulation of the Government of the Republic enters into force on the next day following the publication pursuant to the current procedure.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

 (2) The subjects of the sanctions of the Government of the Republic of shall be designated by a directive of the minister in charge of the policy sector.

 (3) The provisions of the Administrative Procedure Act shall not apply to the designation of the subjects of the sanctions of the Government of the Republic.

 (4) The addition of a subject of the sanction to the list and removal from the list is deemed to have been notified upon the publication of the relevant information on the website of the Ministry of Foreign Affairs. In the event of an entry ban, the addition to and removal from the list of the subject of the sanction is deemed to have been notified upon the publication of the name of the subject of the sanction and, where it is known, the date of birth on the website of the Ministry of the Interior.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

 (5) The provisions regarding international sanctions shall be applied to the sanctions of the Government of the Republic, taking account of the specifications provided for in this Chapter.

§ 28.  Rights of subject of Government of Republic sanctions

 (1) The subject of the sanctions of the Government of the Republic may submit an inquiry to the Ministry of Foreign Affairs as to the reasons for designation as the subject of the sanction.

 (2) The subject of the sanctions of the Government of the Republic may submit a reasoned application together with evidence to the Ministry of Foreign Affairs for removal from the list of subjects of sanction.

 (3) The Ministry of Foreign Affairs shall respond to the inquiry specified in subsection 1 of this section and the application specified in subsection 2 within thirty days.

 (4) A person who is the subject of the sanctions of the Government of the Republic may file an appeal regarding the designation of them as the subject of sanction with an administrative court pursuant to the procedure provided for by the Code of Administrative Court Procedure.

§ 29.  Validity and review of sanctions of the Government of the Republic

 (1) The sanctions of the Government of the Republic shall be valid until the term designated in a regulation established on the basis of subsection 1 of § 27 of this Act or for an unspecified term.

 (2) If the sanctions of the Government of the Republic are in force for more than one year, they shall be regularly reviewed.

 (3) The minister in charge of the policy sector may suspend the sanctions of the Government of the Republic with regard to a subject of the sanction on the basis of a reasoned application of the subject of the sanction or on the reasoned proposal of a governmental authority or a state agency administered by the governmental authority or on its own initiative for a specified term.

 (4) A governmental authority, a state agency administered by a governmental authority or a court may make a reasoned proposal to the Ministry of Foreign Affairs to remove a subject of the sanctions of the Government of the Republic from the list.

Chapter 5 Organization of supervision  

§ 30.  Supervisory authorities

 (1) The Financial Intelligence Unit exercises state supervision over the application of financial sanctions and compliance with the requirements of this Act and legislation established on the basis thereof by a person with special obligations, unless otherwise provided by law.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

 (11) The Financial Supervision Authority exercises supervision over the compliance with the requirements of this Act and legislation established on the basis thereof by credit institutions and financial institutions over which it exercises supervision on the basis of the Financial Supervision Authority Act, taking into account the specifications provided for in this Act.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

 (2) The application of a financial sanction by the registrars specified in clauses 1–3, 5¹, 5² and 7–11 of subsection 1 of § 25 of this Act is supervised by way of official supervision.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

 (3) The exercise of supervision over the application of a financial sanction by the registrars specified in clauses 4, 5, 5³, 6 and 12 of subsection 1 of § 25 of this Act is carried out pursuant to the procedure provided for in § 45 of the Courts Act.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]

 (4) The Board of the Estonian Bar Association shall supervise compliance with the requirements of this Act and legislation established on the basis thereof by the members of the Estonian Bar Association pursuant to the Bar Association Act, taking account of the provisions of this Act.

 (5) The Ministry of Justice shall exercise supervision over compliance with the requirements of this Act and legislation established on the basis thereof by notaries on the basis of the Notaries Act, taking account of the provisions of this Act. The Ministry of Justice may delegate supervision to the Chamber of Notaries.

§ 31.  Special measures of state supervision

 (1) In order to exercise state supervision provided for in this Act, a law enforcement agency may apply special state supervision measures provided for in §§ 30 and 50 of the Law Enforcement Act on the basis of and pursuant to the procedure provided for by the Law Enforcement Act.

 (2) A law enforcement agency may enter into the seat and place of business of a person with special obligations, a legal service provider and a registrar, and the premises and rooms in their possession under the conditions provided for in § 50 of the Law Enforcement Act, and the measure may be applied in the presence of the person inspected, the representative or member of the staff of the person.

 (3) The results of state supervision shall be recorded pursuant to the procedure provided for in § 68 of the Money Laundering and Terrorist Financing Prevention Act.

§ 32.  Precept of Financial Intelligence Unit or Financial Supervision Authority

  [RT I, 08.03.2022, 1 – entry into force 15.03.2022]

 (1) The Financial Intelligence Unit may issue a precept for the appointment of a responsible member of the management board provided for in subsection 2 of § 20 of this Act and a person in charge prescribed in subsection 3 of § 20 of this Act and for the establishment of the rules of procedure and internal control rules complying with the requirements provided for in § 23 of this Act.
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 (2) In the case of suspected violation of financial sanctions, the Financial Intelligence Unit may, by a precept, suspend the transaction or acts suspected of violation or oblige taking measures necessary for the application of financial sanctions.

 (3) If the Financial Intelligence Unit suspects that a transaction is used for financing the disposal of the goods or property banned or restricted by international sanctions or for services related to them or for payment for them, or for payment for services banned or restricted by international sanctions, the Financial Intelligence Unit may suspend the transaction by a precept.

 (4) The precept specified in subsections 2 and 3 of this section may be imposed until up to the expiry of the international sanctions on which it is based.

 (5) The Financial Intelligence Unit communicates the precept to the person concerned within two working days by notifying the person concerned of the following of the precept: 1) the legal basis;
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 2) the content and scope;
 3) the date of commencement;
 4) the basis and procedure for making exceptions;
 5) the procedure for contestation.

§ 33.  Non-compliance levy for failure to comply with precept

 (1) If a person with special obligations is a credit or financial institution specified in clause 1 or 2 of subsection 1 of § 20 of this Act, the maximum rate of non-compliance levy implemented pursuant to the procedure provided for in the Substitutional Performance and Non-Compliance Levies Act in the case of a failure to comply or improper compliance with the precept specified in § 32 of this Act shall be:
 1) in the case of a natural person, up to 5,000 euros for the first occasion and up to 50,000 euros in subsequent cases for the compulsory enforcement of one and the same obligation, but not more than 5,000,000 euros in total;
 2) in the case of a legal person, up to 32,000 euros for the first occasion and up to 100,000 euros in subsequent cases for the compulsory enforcement of one and the same obligation, whichever amount is larger, up to 5,000,000 euros or 10% of the total annual turnover of the legal person according to the last available annual accounts approved by the management body.

 (2) Where the legal person specified in clause 2 of subsection 2 of this section is a parent undertaking or a subsidiary of such parent undertaking that must prepare consolidated annual accounts, the total annual turnover of the legal person is considered to be either the annual turnover or the total turnover of the income type in the field of breach on which the precept specified in § 32 of this Act is based according to the latest available consolidated annual accounts approved by the highest-level management body of the parent undertaking.

 (3) In the case of persons unspecified in subsections 1 and 2 of this section, the upper limit of the non-compliance levy shall be equal to up to twice the profit earned as a result of the violation if such profit can be determined, or up to 1,000,000 euros.

§ 34.  Exchange of information

 (1) If, while exercising supervision, the Financial Supervision Authority or the supervisory authority specified in § 30 of this Act identifies a situation whose features indicate violation of financial sanctions or suspicion thereof, or refer to the violation of the requirements of this Act, they promptly notify the Financial Intelligence Unit thereof.

 (2) The supervisory authority specified in § 30 of this Act is required to submit information to the Financial Intelligence Unit by 15 April for the previous calendar year concerning:
 1) the number of supervision proceedings conducted and the number of persons engaged in supervision by their types;
 2) the number of violations discovered in the course of supervision and of the persons with regard to whom misdemeanour proceedings or other measures were applied, and the legal basis of them by persons.

 (3) Where necessary, the Financial Intelligence Unit forwards information collected in the course of performance of the obligations provided for in this Act, including information containing banking and business secrets, to the Ministry of Foreign Affairs or the Estonian Internal Security Service.
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 (4) In order to perform the obligations prescribed in this Act, the Financial Intelligence Unit shall have the right to exchange information, including receiving and forwarding information containing banking and business secrets, with a foreign authority that performs the functions of a financial intelligence unit or a foreign law enforcement agency pursuant to the procedure provided for in § 63 of the Money Laundering and Terrorist Financing Prevention Act.

 (5) The Financial Intelligence Unit may notify a competent supervisory authority, security authority or international organization or institution or a foreign supervisory authority of a violation of the requirements of this Act or transmit data, analyzes and assessments recorded in the Financial Intelligence Unit, at a relevent request, to the extent that they do not violate the requirements established by law, international agreement or within the framework of international cooperation, analyses and assessments registered with the Financial Intelligence Unit where it is necessary for the implementation of an international sanction or prevention of violations related thereto or for the performance of the functions of a competent supervisory authority or security authority arising from the law or for achieving the objectives of this Act or where such information is necessary for the implementation and application of an international sanction of another state. The Financial Intelligence Unit decides on the making of notifications and responses to the application.
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Chapter 6 Responsibility  

§ 35.  Failure to notify of identification of subject of financial sanctions or transaction or act violating financial sanctions and of application of financial sanctions and submission of false information

 (1) Violation of the obligation to notify the Financial Intelligence Unit of the identification of a subject of financial sanctions or a transaction or act violating financial sanctions provided for in subsections 1 and 4 of § 21 of this Act, and violation of the obligation to notify the Financial Intelligence Unit of the application of financial sanctions as well as submission of false information – is punishable by a fine of up to 300 fine units or by detention.

 (2) The same act, if committed by a legal person, – is punishable by a fine of up to 400,000 euros.

§ 351.  Failure to appoint responsible member of management board and responsible person and failure to notify Financial Intelligence Unit or Financial Supervision Authority of their contact details

 (1) Failure to appoint a responsible member of the management board provided for in subsection 2 of § 20 of this Act or failure to appoint a responsible person provided for in subsection 3 or failure to notify the Financial Intelligence Unit or the Financial Supervision Authority of their contact details –
is punishable by a fine of up to 300 fine units or detention.

 (2) The same act, if committed by a legal person, –
is punishable by a fine of up to 400,000 euros.
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§ 352.  Failure to identify and update risk assessment and risk appetite of international sanction

 (1) Failure to identify or update the risk assessment or risk appetite of an international sanction specified in clause 2 of subsection 3 of § 221 of this Act –
is punishable by a fine of up to 300 fine units or detention.

 (2) The same act, if committed by a legal person, –
is punishable by a fine of up to 400,000 euros.
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§ 353.  Failure to apply due diligence measures upon establishing business relationships

 (1) Failure to apply the due diligence measures, specified in subsections 1–2 of § 21 of this Act, the purpose of which is to identify the subject of a financial sanction, upon establishing a business relationship, –
is punishable by a fine of up to 300 fine units or detention.

 (2) The same act, if committed by a legal person, –
is punishable by a fine of up to 400,000 euros.
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§ 354.  Failure to apply due diligence measures during business relationship

 (1) Failure to apply the due diligence measures, specified in subsections 1–2 of § 21 of this Act, the purpose of which is to identify the subject of a financial sanction, during a business relationship, –
is punishable by a fine of up to 300 fine units or detention.

 (2) The same act, if committed by a legal person, –
is punishable by a fine of up to 400,000 euros.
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§ 355.  Failure to establish and comply with rules of procedure and internal control rules and failure of employee of person with special obligations to implement them

 (1) Failure to establish or comply with the rules of procedure or internal control rules specified in § 23 of this Act or failure to apply them by an employee of a person with special obligations –
is punishable by a fine of up to 300 fine units or detention.

 (2) The same act, if committed by a legal person, –
is punishable by a fine of up to 400,000 euros.
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§ 36.  Violation of obligation to collect and store data

 (1) Violation of the obligation to collect and store data provided for in § 22 of this Act –
is punishable by a fine of up to 300 fine units.

 (2) The same act, if committed by a legal person, –
is punishable by a fine of up to 400,000 euros.

§ 37.  Procedure

  The body conducting extra-judicial proceedings of the misdemeanours specified in §§ 35–36 of this Act is the Financial Intelligence Unit or the Financial Supervision Authority.
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Chapter 7 Implementing provisions  

§ 38. – § 44. [Omitted from this text.]

§ 45.  Entry into force of Act

  This Act enters into force on 1 January 2020.

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