REPUBLIC OF LITHUANIA
LAW ON
INTERNATIONAL SANCTIONS
22 April 2004 No IX-2160
(As last amended on 19 April 2022 – No XIV-1020)
Vilnius
CHAPTER I
GENERAL PROVISIONS
Article 1. Purpose of the Law
1. This Law shall aim at ensuring the interests of the national security and foreign policy of the Republic of Lithuania in implementing international commitments of the Republic of Lithuania, the Common Foreign and Security Policy of the European Union, also contributing to maintaining peace, stability and the rule of law in the world, the international community’s struggle against international terrorism, violations of human rights, territorial, ethnic and religious conflicts in other states.
2. This Law shall lay down general terms and conditions for the submission of proposals on the imposition of international sanctions and for the implementation in the Republic of Lithuania of sanctions imposed by the European Union, the United Nations and other international organisations of which the Republic of Lithuania is a member or in which the Republic of Lithuania participates.
3. The provisions of other laws shall apply to relationships regulated by this Law to the extent they are not regulated by this Law.
Article 2. Definitions
1. ‘Sanctioned entity’ means a state or a part thereof, a territory (zone of specific status), a natural or legal person, any other organisation or a group of natural or legal persons and/or a group of organisations subject to international sanctions.
2. ‘International sanctions’ means the totality of restrictions and obligations imposed by legal acts of the European Union, by decisions of the United Nations and other international organisations of which the Republic of Lithuania is a member or in which it participates that are directly applicable in the Republic of Lithuania or are implemented in accordance with the procedure laid down by this Law.
Article 3. Types of international sanctions
In the Republic of Lithuania, economic, financial, political, transport and communications, social international sanctions as well as international sanctions imposing other restrictions and obligations shall be implemented.
Article 4. Binding nature of international sanctions
1. All natural persons and legal persons must comply with and implement international sanctions implemented in the Republic of Lithuania in accordance with the procedure laid down by this Law and other legal acts.
2. It shall be necessary to take the actions required by international sanctions implemented in the Republic of Lithuania and/or to refrain from any actions if this would lead to non-compliance with or circumvention of the restrictions and obligations imposed by international sanctions implemented in the Republic of Lithuania.
3. The fact of the imposition of international sanctions shall be recorded in state registers or state information systems where data on a sanctioned entity or its assets or descriptive data related to these assets are processed in that state register or state information system.
4. Information about the decisions taken regarding sanctioned entities because of their links with the entities included in the lists of sanctioned persons shall be provided to the natural persons and legal persons implementing these sanctions and to data processors of state registers and state information systems by the Financial Crime Investigation Service under the Ministry of the Interior of the Republic of Lithuania.
CHAPTER II
INITIATION OF INTERNATIONAL SANCTIONS
AND SCOPE OF THEIR IMPLEMENTATION
Article 5. Submission of proposals regarding international sanctions
The Ministry of Foreign Affairs of the Republic of Lithuania shall, on its own initiative, on a proposal of the commission referred to in Article 10(1) of this Law or of the competent authorities referred to in Article 11 of this Law and in accordance with the procedure laid down by legal acts of the Republic of Lithuania, draft and submit proposals to the European Union, the United Nations and other international organisations of which the Republic of Lithuania is a member or in which the Republic of Lithuania participates to impose, amend or lift international sanctions.
Article 6. Scope of the implementation of international sanctions
1. International sanctions imposed by directly applicable legal acts of the European Union shall be implemented in full. Where necessary, the Ministry of Foreign Affairs shall, on its own initiative or on a proposal of the competent authorities referred to in Article 11 of this Law, prepare and submit to the Government of the Republic of Lithuania draft legal acts of the Republic of Lithuania required for the implementation of international sanctions.
2. International sanctions imposed by resolutions of the United Nations Security Council shall be implemented in the Republic of Lithuania in full and directly. International sanctions imposed by decisions of the Sanctions Committees established by resolutions of the United Nations Security Council shall be implemented in the Republic of Lithuania under directly applicable legal acts of the European Union or, where necessary, the Ministry of Foreign Affairs shall, on its own initiative or on a proposal of the competent authorities referred to in Article 11 of this Law, prepare and submit to the Government draft legal acts of the Republic of Lithuania required for the implementation of international sanctions.
3. The Republic of Lithuania shall implement the international sanctions recommended by the General Assembly of the United Nations, the Organization for Security and Co-operation in Europe, other international organisations of which the Republic of Lithuania is a member or in which the Republic of Lithuania participates, taking into account whether their implementation is necessary to achieve the objectives specified in Article 1(1) of this Law. The Ministry of Foreign Affairs shall, on its own initiative or on a proposal of the competent authorities referred to in Article 11 of this Law, prepare and submit to the Government draft legal acts of the Republic of Lithuania required for the implementation of international sanctions.
CHAPTER III
IMPACT OF INTERNATIONAL SANCTIONS ON TRANSACTIONS AND OBLIGATIONS. APPOINTMENT OF A TEMPORARY ADMINISTRATOR,
REALISATION OF ECONOMIC RESOURCES
Article 7. Prohibition to conclude and perform transactions and obligations, legal consequences of non-performance thereof
1. It shall be prohibited to conclude transactions and assume new obligations the performance whereof contradicts the international sanctions implemented in the Republic of Lithuania, with such transactions being null and void.
2. It shall be prohibited to perform, during the period of the implementation of international sanctions, the transactions and obligations the performance whereof contradicts the international sanctions implemented in the Republic of Lithuania.
3. Transactions entered into and obligations arising prior to the establishment of the implementation of international sanctions in the Republic of Lithuania must be terminated without delay unilaterally or by agreement between the parties or their performance must be suspended during the period of the implementation of international sanctions.
4. Natural persons and legal persons shall not be subject to civil liability for non-performance of transactions and obligations due to the implementation of international sanctions or shall be exempted from civil liability in accordance with the procedure laid down by legal acts of the Republic of Lithuania.
5. The losses incurred by natural persons and legal persons as a result of lawful actions of state or municipal institutions in implementing this Law shall not be compensated.
Article 8. Temporary administrator
1. With the exception of the case referred to in paragraph 13 of this Article, the Minister of Finance shall have the right to appoint a temporary administrator to a legal person where international sanctions are implemented in the Republic of Lithuania in respect of this legal person, the owner or controlling person thereof and where temporary administration is necessary to avoid adverse social, economic, ecological or other significant consequences for the public or the State and to ensure compliance with the requirements laid down in Article 4 of this Law. The competent authority referred to in Article 11 of this Law shall inform without delay the Ministry of Finance of the Republic of Lithuania about the arising need to appoint a temporary administrator. A legal person or a natural person may be appointed as temporary administrator.
2. A natural person appointed as temporary administrator or the head of a legal person appointed as temporary administrator must be of good repute. A person may not be considered to be of good repute in the following cases:
1) he has, by an effective court judgment, been found guilty of a serious or grave crime, irrespective of whether his conviction has expired or has been expunged;
2) he has, by an effective court judgment, been found guilty of a less serious crime and has an unexpired or unexpunged conviction;
3) he has been adjudicated as legally incapable or having limited legal capacity in any area or he is subject to compulsory medical treatment;
4) he collaborates or collaborated, maintains or maintained relations with an intelligence or security service of a foreign state or with persons collaborating or maintaining relations with an intelligence or security service of a foreign state in relation to the interests hostile to the Republic of Lithuania;
5) he participates or participated in the activities of a terrorist organisation or a terrorist group or maintains or maintained links with a person belonging to a terrorist organisation or a terrorist group;
6) he is subject to organised crime prevention measures under the Law of the Republic of Lithuania on the Prevention of Organised Crime;
7) he abuses alcohol, consumes narcotic, psychotropic or other psychoactive substances for non-therapeutic purposes;
8) he has, within the last three years, been convicted more than once of an administrative offence related to the use of alcohol, narcotic, psychotropic or other psychoactive substances.
3. A natural person appointed as temporary administrator or the head of a legal person appointed as temporary administrator shall also be subject to the requirements of appropriate qualifications and experience and may not be bound by a conflict of interest with the legal person he administers and with the Ministry of Finance. The qualification and experience of a person shall be assessed taking into account the level and nature of his education, improvement of his qualification, nature and duration of his professional activity or work experience and other factors which may affect the proper performance of his activities. Candidates for the post of a temporary administrator shall be proposed to the Minister for Finance by the public agency Governance Coordination Centre within three working days from the receipt of the information on the need to submit a nomination, except in the case referred to in paragraph 13 of this Article.
4. A temporary administrator shall be appointed by a decision of the Minister of Finance. The Minister of Finance shall determine the term of appointment of the temporary administrator, powers, functions and actions that the temporary administrator may perform only subject to prior approval of the Ministry of Finance. The decision referred to in this paragraph may also provide, where necessary, that the powers of certain or all bodies of the legal person are suspended and temporarily taken over by the temporary administrator or that certain decisions of the bodies of the legal person require the temporary administrator’s approval. The Minister of Finance must notify the data processor of the Register of Legal Entities of the decision taken on the appointment, replacement of the temporary administrator or termination of his powers not later than on the next working day, and the data processor shall record the fact of appointment, replacement of the temporary administrator or termination of his powers in the Register of Legal Entities without delay, but not later than on the next working day. The decision must state: the name and registration number of a legal person, the forename and surname of the appointed temporary administrator, his personal identification number, home address (if he is a natural person) or his name and registration number (if it is a legal person).
5. The conditions of activities of a temporary administrator shall be defined in a temporary administrator’s contract concluded between the Ministry of Finance and the temporary administrator. This contract shall also specify the temporary administrator’s remuneration and other expenses (including expenses related to the services provided by service providers), taking into account the scope of activities of the temporary administrator, his qualification and duration of activities, the procedure for reimbursement of the expenses, as well as the liability of the temporary administrator, the procedure for his resignation and recalling. Remuneration shall be paid and expenses shall be reimbursed (including expenses related to services rendered by service providers) from funds of a legal person. If the legal person fails to remunerate the temporary administrator on time, the Ministry of Finance must remunerate the temporary administrator. The Ministry of Finance shall have the right to request reimbursement of the amounts paid from the legal person. The minimum amount of compulsory insurance against the temporary administrator’s civil liability shall be EUR 300 000 for one insured event and 1 EUR 000 000 for all insured events per year. Upon payment of an insurance benefit in the case of an insured event and reduction of the minimum insured amount, the temporary administrator must, within one month, take out insurance against civil liability in order to restore the compulsory minimum amount insured.
6. A temporary administrator shall be appointed for a maximum period of one year. In exceptional cases, the time limit for the appointment of the temporary administrator may be extended by a decision of the Minister of Finance. The temporary administrator may be replaced or removed from office at any time, and if the need for his appointment ceases to exist he must be removed from office without delay.
7. A temporary administrator shall have the right to engage service providers (including legal, accounting, auditing, management consultants) at his discretion to perform his functions properly.
8. A temporary administrator shall take all required steps to ensure compliance with the requirements laid down in Article 4 of this Law and to avoid the adverse consequences referred to in paragraph 1 of this Article. If necessary, the temporary administrator shall have the right to open deposit accounts with financial institutions of the Republic of Lithuania which would be used to ensure the continuity of the activities of a legal person. It shall be prohibited to enforce with the funds held in these deposit accounts the pecuniary claims of a legal person’s participants against whom international sanctions are implemented in the Republic of Lithuania.
9. The Ministry of Finance may require a temporary administrator to provide, within the time limits laid down in the contract referred to in paragraph 5 of this Article, the Ministry with information on the financial situation of a legal person and on the actions carried out during the period of the appointment of the temporary administrator.
10. A temporary administrator must perform his functions prudently and in good faith. A temporary administrator may not exercise the rights granted to him for his personal needs or those of third parties.
11. A temporary administrator shall have the right to resign in accordance with the procedure laid down in the contract referred to in paragraph 5 of this Article. If a temporary administrator resigns, the Minister of Finance shall without delay initiate the appointment of a new temporary administrator.
12. The provisions of this Article shall apply mutatis mutandis to cases where the Minister of Finance appoints a temporary administrator of economic resources which are frozen in the Republic of Lithuania in implementing international sanctions. A decision taken on the appointment of a temporary administrator, which must include the particulars characterising the frozen economic resources, as well as a decision taken on the replacement of a temporary administrator or the termination of his powers in respect of the economic resources referred to in this paragraph which are to be recorded in a public register or the particulars describing which are stored in a state information system must, not later than on the next working day, be notified by the Minister for Finance to the data processor of that public register and/or that information system, and the data processor shall record the fact of the appointment, replacement of the temporary administrator or termination of his powers in that public register and/or that information system without delay, but not later than on the next working day.
13. The Bank of Lithuania shall have the right to appoint a temporary administrator for a financial market participant who is licensed or otherwise authorised and supervised by the Bank of Lithuania as referred to in Article 42 of the Law of the Republic of Lithuania on the Bank of Lithuania, where international sanctions are implemented in the Republic of Lithuania in respect of such a financial market participant, the owner or controlling person thereof, and where the other conditions referred to in paragraph 1 of this Article are met. Candidates for temporary administrators shall be selected by the Bank of Lithuania. The provisions of this Article laying down the rights and duties of the Minister of Finance and the Ministry of Finance shall apply mutatis mutandis to the Bank of Lithuania.
Article 9. Realisation of economic resources
Economic resources frozen in implementing international sanctions in the Republic of Lithuania may be realised in accordance with the procedure laid down by the Government where they are perishable or are likely to quickly lose their commercial value, and where their keeping, storage or maintenance costs may exceed their commercial value. Where a temporary administrator has been appointed in accordance with the procedure laid down in Article 8 of this Law, he shall take a decision on the realisation of economic resources. Funds obtained from the realisation of economic resources shall be held in a deposit account of a financial institution of the Republic of Lithuania.
CHAPTER IV
COORDINATION AND ENSURING OF
THE IMPLEMENTATION OF INTERNATIONAL SANCTIONS
Article 10. Coordination of the implementation of international sanctions
1. The Government shall set up a Commission for Coordination of International Sanctions (hereinafter: the ‘Commission’) with the purpose of submitting and discussing proposals for the imposition of international sanctions and of coordinating the ensuring of the implementation of international sanctions being implemented in the Republic of Lithuania and shall approve the Commission’s rules of procedure. The Commission shall be headed by the Minister of Foreign Affairs or a person authorised by him. The Commission shall be provided services by the Ministry of Foreign Affairs.
2. On a proposal from the competent authorities referred to in Article 11 of this Law or on its own initiative, the Commission shall:
1) make recommendations to the Ministry of Foreign Affairs on the proposals referred to in Article 5 of this Law to impose, amend or lift international sanctions being implemented in the Republic of Lithuania;
2) coordinate activities of state institutions in the field of the implementation of international sanctions and make proposals to the Government for improvement of the regulatory framework and other actions to ensure the effective implementation of international sanctions;
3) develop guidelines on the implementation of international sanctions with a view to ensuring uniform practices in the implementation of international sanctions.
3. The Ministry of Foreign Affairs shall provide information on the implementation of international sanctions in the Republic of Lithuania to the institutions of the European Union, the United Nations and other international organisations whose international sanctions are implemented and, where appropriate, to the competent authorities of foreign states.
Article 11. Competent authorities in implementing international sanctions, their functions and areas of activity
1. In ensuring the implementation of international sanctions, the competent authorities referred to in paragraphs 3, 4 and 5 of this Article shall, in accordance with their remit:
1) take decisions referred to in legal acts imposing international sanctions;
2) decide on the granting of exemptions or waivers from the restrictions and obligations set out in legal acts imposing international sanctions and carry out any procedures required for that purpose;
3) respond to enquiries from natural persons and legal persons concerning the implementation in the Republic of Lithuania of international sanctions falling within the scope of activities of these competent authorities;
4) obtain and provide information in accordance with the procedure laid down in Article 12 of this Law.
2. The Government shall lay down the procedure for implementing international sanctions.
3. The competent authorities ensuring the implementation of international sanctions in the Republic of Lithuania in accordance with the areas of activity assigned to them shall inter alia be as follows:
1) the Financial Crime Investigation Service under the Ministry of the Interior of the Republic of Lithuania, as well as the Ministry of Finance, the Customs Department under the Ministry of Finance of the Republic of Lithuania and other institutions ensuring, in accordance with the areas of activity assigned to them, the implementation of restrictions on the availability of funds and economic resources, restrictions on payments and other restrictions on financial activities (financial sanctions);
2) the Migration Department under the Ministry of the Interior of the Republic of Lithuania ensuring the implementation of restrictions on entry into, or transit through, the Republic of Lithuania of sanctioned persons;
3) the Ministry of the Economy and Innovation of the Republic of Lithuania, the Customs Department under the Ministry of Finance of the Republic of Lithuania, the Ministry of Foreign Affairs, as well as other institutions ensuring, in accordance with the areas of activity assigned to them, the implementation of restrictions on sanctioned economic activities, which are applicable to natural persons and legal persons and on economic activities of sanctioned entities in the Republic of Lithuania as well as restrictions on the import, export, re-export and transit of civil, dual use items, military equipment, services and technology, and restrictions on trade (economic sanctions);
4) the Ministry of Foreign Affairs and other institutions ensuring, in accordance with the areas of activity assigned to them, the implementation of restrictions on diplomatic relations and other means of political and diplomatic influence;
5) the Ministry of Transport and Communications of the Republic of Lithuania, the Lithuanian Transport Safety Administration, the Communications Regulatory Authority of the Republic of Lithuania, as well as other institutions ensuring, in accordance with the areas of activity assigned to them, the implementation of restrictions on communications and transport;
6) other institutions ensuring, in accordance with the areas of activity assigned to them, the implementation of restrictions on cultural, scientific, educational, sporting and other public relations with sanctioned entities.
4. The Financial Crime Investigation Service under the Ministry of the Interior of the Republic of Lithuania shall coordinate, supervise and ensure the implementation of financial sanctions (restrictions on the availability of funds and economic resources) in the Republic of Lithuania. In ensuring the implementation of financial sanctions, the Financial Crime Investigation Service under the Ministry of the Interior of the Republic of Lithuania shall perform the functions of the competent authority referred to in this Article, including the provision to the entities implementing financial sanctions of information that the Service has clarified when analysing the links of natural persons and/or legal persons with sanctioned entities.
5. Where the implementation of certain international sanctions falls outside the scope of activities of any institution, the Government shall designate a competent authority for the implementation of those international sanctions.
6. The competent authorities referred to in paragraphs 3, 4 and 5 of this Article shall adopt arrangements for the implementation of international sanctions in their areas of activity.
7. The Bank of Lithuania and other institutions designated by the Government for the supervision of activities of economic entities shall, in the performance of their supervisory function, supervise, within their remit, the compliance with the provisions of Article 4 of this Law and shall advise, within their remit, the competent authorities referred to in paragraphs 3 and 5 of this Article on the implementation of international sanctions.
Article 12. Obtaining and provision of information in ensuring the implementation of international sanctions
1. Natural persons and legal persons shall provide the competent authorities referred to in Article 11 of this Law with the data required to ensure the implementation of international sanctions in accordance with the procedure and within the time limits laid down by the Government.
2. The competent authorities referred to in Article 11 of this Law shall, in accordance with the procedure and within the time limits laid down by the Government, provide the Ministry of Foreign Affairs with information on the implementation of international sanctions which is required to be provided to the institutions of the European Union, the United Nations and other international organisations whose international sanctions are implemented.
3. Natural persons and legal persons shall have the right to exchange information on the sanctioned entity for the purpose of implementing international sanctions.
4. The provision of the information referred to in this Law to the authorities referred to in Article 11 of this Law shall not be deemed to constitute a disclosure of a commercial or professional secret or other confidential information.
5. The competent authorities referred to in Article 11 of this Law shall be bound to protect commercial or professional secrets acquired in implementing this Law and may use them without the consent of a natural person or a legal person only for the purposes for which they have been provided.
6. Data comprising a state secret or an official secret shall be provided to institutions and kept and stored in those institutions in accordance with the procedure laid down in the Law of the Republic of Lithuania on State Secrets and Official Secrets.
CHAPTER V
LIABILITY FOR INFRINGEMENTS OF THIS LAW
Article 13. Liability for infringements of this Law
1. Natural persons and legal persons shall be held liable for infringements of this Law in accordance with the procedure laid down by laws of the Republic of Lithuania.
2. If it is suspected that an infringement of this Law has the characteristics of an administrative offence or a criminal offence, the competent authorities who are referred to in Article 11 of this Law but whose staff are not entitled to conduct administrative proceedings or to initiate a pre-trial investigation shall without delay forward all available information on the alleged administrative offence or criminal offence to the institution whose officials are entitled to conduct administrative proceedings or to initiate a pre-trial investigation and shall inform the Ministry of Foreign Affairs accordingly.
I promulgate this Law passed by the Seimas of the Republic of Lithuania.
ACTING PRESIDENT OF THE REPUBLIC ARTŪRAS PAULAUSKAS