As of 20 May 2025, amendments to Finnish legislation, including the Criminal Code, concerning sanctions violations and the enhancement of criminal liability for such offences have come into effect.
The amendments introduce a new classification for sanctions violations and substantially increase corporate fines. Consequently, we recommend that companies consider these changes when updating their internal sanctions compliance procedures to align with the updated legal framework and the increasing significance of sanctions.
Background for the changes
On 24 April 2024, the European Parliament and the Council enacted Directive No 2024/1226, which defines criminal offences and penalties for breaches of Union restrictive measures (the “Directive”). The Directive seeks to harmonise the approach of EU member states in addressing and penalising sanctions violations. Member states must ensure that the sanctions violations outlined in the Directive are subject to criminal liability and impose heightened fines for such infractions.
Before the adoption and transposition of the Directive, Finland had already criminalised the violation of EU sanctions. However, enhancements have been proposed to align Finnish legislation more closely with the Directive. Previously, the Finnish Criminal Code established criminal liability for breaches of EU sanctions, categorising them as regulation offences, or as aggravated regulation offences depending on the severity of the violation.
Key changes in penalising sanctions violations
The Finnish Criminal Code now distinctly defines criminal offences and penalties specifically for violating EU sanctions, replacing the previous classification of regulation offences used for such violations.
These new sanctions offences also apply to violations committed outside Finland by Finnish citizens and individuals considered equivalent, even if the act is not punishable under the laws of the jurisdiction where it occurred.
The Criminal Code establishes four new offences related to sanctions violations:
- sanctions offence (Fi: pakoterikos),
- aggravated sanctions offence (Fi: törkeä pakoterikos),
- negligent sanctions offence (Fi: tuottamuksellinen pakoterikos), and
- sanctions violation (Fi: pakoterikkomus). A sanctions violation refers to minor infractions, such as violations involving low-value assets or procedural breaches, which serve more administrative than criminal law purposes.
The criminal liability for natural persons has been primarily changed by increasing the maximum punishment for committing aggravated sanctions offences from four years to five years of imprisonment.
Criminal liability of legal entities (corporate criminal liability) applies to sanctions offence, aggravated sanctions offence, and negligent sanctions offence. The maximum corporate fine has been established at five percent of the entity’s turnover, with a minimum amount of EUR 850,000.00 and a maximum of EUR 40 million.
Importance of the changes from a business perspective
An increase in criminal liability does not automatically trigger criminal investigations targeting companies. Official data indicates that by the end of 2024, Finnish authorities had launched over 900 investigations into various sanctions violations imposed against Russia since 2022, primarily concerning offences committed by individuals.
According to the Criminal Code, companies may face criminal liability for sanctions breaches resulting from inadequate compliance systems or actions of responsible employees. However, the stakes for corporate errors have risen, considering newly presented classification of offences and the amount of fines. Therefore, it is crucial to understand the applicability of sanctions and to establish robust internal sanctions compliance procedures.
As sanctions compliance is an evolving area due to legislative changes and global political developments, companies must also strive to enhance their current compliance processes, continuously monitor them, and update them in response to potential risks and practical considerations.
Contacts
Our Strategic Advisory team is actively monitoring legislative changes and practical developments in sanctions sphere both in Finland and globally. We would be pleased to address any questions or concerns you may have on these matters.
