New and stricter sanctions enforcement laws on the horizon – Time to ensure your sanctions compliance policies are up to date   

Insights|May 16, 2025

Both Finland and Sweden have adopted new legislation based on the EU sanctions crime directive. The new legislation will enter into force on 20 May, respectively 10 June.

The main changes in both countries are increased penalties for violations of international sanctions. The major change for companies active in Finland, is the jump of corporate fine from the previous maximum of 850.000 euros to the maximum of 5% of global turnover or 40 MEUR. Companies active in Sweden can receive a maximum penalty of 500 million SEK for sanction offences.

A prerequisite for corporate liability in both Sweden and Finland is that that the company has failed to exercise due care and caution, and thus not done what could reasonably be demanded to prevent the offense. In some cases, liability can be attached to the company without identifying individuals who have committed the criminal acts. Due care and caution can be demonstrated through targeted compliance programs that are implemented in the company, and they are key in defense against corporate criminal liability. Thus, it is time to ensure your sanctions compliance policy is up to date!

Below we provide a quick checklist for reviewing your program:

  1. Risk assessment. Where do you operate, what is your product, who are your counterparties, what are your nexuses. Understand where your sanctions links are!
  2. Sanctions compliance policy. Have a robust policy which sets the responsibilities for persons involved and includes steps to be taken in situations where sanctions issues may arise: new customers, new suppliers, new financing, deliveries to high-risk areas or through such, M&A, new agreements, R&D, ongoing monitoring, etc. For international companies, today all agreements should include sanctions clauses, and counterparty due diligence should be an automation. Consider e.g. which tools and databases are most useful for you.
  3. Document. Include an obligation and guidance on documenting the steps taken in accordance with your policy.
  4. Training & responsibilities. How do you ensure that the policy is actively applied and has penetrated the company?
  5. Tone from the top: Management’s obligation is to organize the company’s operations in a compliant manner. Management should be aware of the basics of the sanctions compliance program and should convey the message that this is an area of importance.

Our experts regularly advice clients in compliance policy related questions, counterparty checks, sanctions clauses, sanctions due diligence, as well as other specific sanctions issues clients may face.

Key points from the new legislation:

In Finland, new criminal offence provisions will be added to the Finnish Criminal Code (in Finnish “rikoslaki”) concerning sanctions violations. These will replace the current regulation offence provisions, which will no longer apply to sanctions violations once the amendments come into force. Additionally, in Finland the Coercive Measures Act will be amended to allow telecommunications interception in criminal investigations concerning aggravated sanctions offences.

In Sweden, new criminal offence provisions will be introduced in a new law on international sanctions, while the Act on Certain International Sanctions (“Lag om vissa internationella sanktioner”) will be repealed.

The Finnish provisions, with respective penalties, include:

  • Violation of sanctions (“pakoterikkomus”): This will apply to minor forms of sanctions offences, including low-value property or property that is relatively insignificant in terms of the objectives of the sanctions, as well as breaces of reporting obligation which do not qualify as more stringent offences.
  • Penalty: Fine
  • Sanctions offence (“pakoterikos”): This will broadly cover various sanctions violations, such as failure to comply with asset freeze obligations or export and import prohibitions.
  • Penalty: Fine or imprisonment for up to two years.
  • Aggravated sanctions offence (“törkeä pakoterikos”): This will apply to certain sanctions violations where specific aggravating factors are present, such as the pursuit of significant financial gain or involvement of substantial assets, financial resources, services, or transactions.
  • Penalty: Imprisonment ranging from four months to five years.
  • Negligent sanctions offence (“tuottamuksellinen pakoterikos”): This will apply to sanctions violations involving defense materials or dual-use items. Due to the potential harmfulness of such products, it is essential to exercise special caution in their trade and criminalize negligent violations. Criminal liability requires gross negligence.
  • Penalty: Fine or imprisonment for up to one year and six months.

The Swedish provisions include:

  • Sanctions offence (“sanktionsbrott”): This will broadly cover various sanctions violations, such as failure to comply with asset freeze obligations or export and import prohibitions.
  • Penalty:Imprisonment for up to three years.
  • Violation of sanctions (“Sanktionsförseelse”): This will apply to minor forms of sanctions offences, including low-value property or when the circumstances regarding the offence otherwise are to be deemed less severe. 
  • Penalty: Fine or imprisonment up to six months.
  • Aggravated sanction offence (“grovt sanktionsbrott”): This will apply to certain sanction offences deemed severe, such as when the property is particularly valuable, involving defense materials or dual-use items or when the property otherwise has been particularly dangerous.
  • Penalty: Imprisonment ranging from two years to six years.
  • Repeated Sanctions offence (“Upprepat Sanktionsbrott”): This will apply when two or more sanction offences have been committed, if there is a connection between the offences and they total a very significant value.
  • Penalty: Imprisonment ranging from two years to six years.
  • Attempted sanctions offence, violation of sanction or gross sanction offence (“Försök till sanktionsbrott”): This will apply when a person has commenced the execution of one of these offences without bringing it to completion, provided there was a risk that the act would result in the completion of the offense or that such risk was ruled out solely due to incidental circumstances.
  • Penalty: Fine or Imprisonment up to six years.