Consolidated FAQs on the implementation of Council Regulation No 833/2014 and Council Regulation No 269/2014 [Version of 26 April 2023]

The EC has published an updated consolidated version of its FAQs on the implementation of Council Regulation No 833/2014 and Council Regulation No 269/2014 in the light of the on going conflict in Ukraine. The consolidated version includes FAQs concerning EU sanctions adopted following Russia’s military aggression against Ukraine.
The update includes the following additional questions in Section B „INDIVIDUAL FINANCIAL MEASURES.“, topic 1 „ASSET FREEZE AND PROHIBITION TO MAKE FUNDS ANDECONOMIC RESOURCES AVAILABLE“ (starting page 21) under the subheading “New reporting obligations introduced by Council Regulation (EU) 2023/426 of 25 February 2023 amending Council Regulation (EU) 269/2014 (‘10th Russia sanctions package’)“, which we would like to present in full, quote:
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Question 35 (p. 32): Reporting on information held on assets’ changed features over the two weeks prior listing: applicability to all existing designations.
Answer: Applying from 26 April 2023, article 8 of Reg. 269/2014 requires operators to report to their national competent authorities (NCAs) on “information held on funds and economic resources within Union territory belonging to, owned, held or controlled by natural or legal persons, entities or bodies listed in Annex I and which have been subject to any move, transfer, alteration, use of, access to, or dealing referred to in Article 1(e) or 1(f) in the two weeks preceding the listing of those natural or legal persons, entities or bodies in Annex I”.
This reporting requirement applies to designations of natural and legal persons, entities and bodies in Annex I to Regulation 269/2014 and therefore to all existing designations.
Question 36 (p. 33): Reporting on information held on changes to assets which took place over the two weeks prior to the designation for already existing designations on 26 April 2023.
Answer: The reporting obligation concerns information held on any move, transfer, alteration, use of,access to, or dealing with assets of designated persons in the two weeks preceding their designation. With information held, the assumption is that the information is already held, typically in existing records, which does not imply additional investigations other than checking existing records. Two scenarios are possible:
– Operators still subject to asset freeze obligations: in this scenario, further to the designation, assets were actually frozen by the operator. These operators have to look back two weeks before designation in their records. For instance, a bank still in charge of the relevant frozen bank account and that processed funds transfers from the bank account of the person in the two week spreceding his/her designation should report these funds transfers within two weeks after 26 April2023 to the competent National Competent Authority (NCA).
– Operators that carried out or were involved in transactions concerning the asset of a designated person in the two weeks before the designation but have since then no more interaction with the assets (ie unlike the scenario above, they are not in charge of any frozen assets): there may be instances where these operators have been involved in “any move, transfer, alteration, use of, access to, or dealing “, for instance a notary having registered the sale of an estate or a trust services provider or lawyer having contributed to placing the assets of a to-be-designated person or entity under a new legal arrangement. Relevant records should be checked against the designated persons or entities to assess a) whether interaction took place with their assets and b) if such interaction led to any move, transfer, alteration, use of, access to, or dealing with the assets in the two weeks preceding the designation.
Question 37 (p. 34): Reporting on information held on changes to assets over the two weeks prior designation for new designations (designations post 26 April 2023).
Answer: Operators freezing assets of natural and legal persons further to their designation after 26 April 2023 should consider the two week prior listing information they may held when reporting on frozen assets (for instance an operator reporting on 16 May on assets frozen for a person designated on 15 May should look back until 1 May to detect possible changes and report them where relevant together with its 16 May report).
This specific reporting could be implemented by way of an addendum to the existing reporting form to their NCAs with possible information held on assets changes reported on such addendum.
Question 38 (p. 34): Specifics of the information to be provided on assets frozen.
Answer: The table below recaps the relevant provisions of article 8(1a) with related guidance:


Question 39 (p. 35): Where/ to whom to report on frozen assets?
Answer: Under art. 8(1) of Council Regulation (EU) No. 269/2014, reporting operators have to report “to the competent authority of the Member State where they are resident or located”, which are listed in Annex II of Regulation 269/2014. From an enforcement perspective, it matters that reporting lines point to the NCA that supervise and can enforce the reporting obligations. For instance, a branch of a financial institution headquartered in Member State A which is located in Member State B is supervised for its financial sanctions compliance by authorities in Member State B. It should therefore address its reports on frozen assets to the NCA in Member State B, unless it opts for group level reporting.
Reporting on group level (e.g a financial institution headquartered in Member State A reporting on group level to the NCA in Member State A for its operations in Member States A, B, C…): reporting on group level could be possible on condition that NCAs in other Member States than the Member State where the report is addressed are informed beforehand and receive a copy of the report indicating the respective national breakdown.
Question 40 (p. 36): Specific cases of CSDs, specific frozen assets reporting and common reporting template.
Answer: Central securities depositories within the meaning of Regulation (EU) No 909/2014 of the European Parliament and of the Council (CSDs) are under specific frozen assets reporting requirements:
– they shall provide the information referred to in paragraphs 1 and 1a of article 8 of Reg. 269/2014;
– they shall also report information on extraordinary and unforeseen loss and damage concerning the relevant funds and economic resources;
– the information above shall be reported within two weeks of acquiring it to the competent authority of the Member State where CSDs are located and every three months thereafter, and transmitted simultaneously to the Commission.
Information on extraordinary and unforeseen loss and damage relate to events such as a cyber attack affecting the frozen assets, fraud, circumvention of the freeze resulting in assets being moved without knowledge of the CSD.
Furthermore, Section C „FINANCE AND BANKING.“, topic 4 „CENTRAL BANK OF RUSSIA“ on page 51, includes the following new questions, as quoted:
Question 6 (p. 52): A common reporting template, reporting timelines
Answer: A common template for reporting immobilised assets under article 5a(4) of Regulation n°833/2014 has been developed and is available on the website of the European Commission, DG FISMA.
It can be used by operators that have immobilised assets to report to their NCAs and to the Commission. Operators that have not immobilised any assets are not expected to submit nil reports.
The first reporting shall be provided by relevant operators no later than two weeks after 26 April 2023 to the competent authority of the Member State where they are resident or located, and simultaneously to the Commission. It shall be updated every three months.
The reporting requirement applying as from 27 April 2023, the value date for the reported assets should be that date (27 April). It is necessary to align subsequent reporting for the three monthly updates with quarterly reporting (e.g the first quarterly update would be based on Q2 value date, i.e. 30 June 2023).
Question 7 (p. 53): Where/ to whom to report on immobilised assets?
Answer: Under art. 5a(4a) of Council Regulation (EU) No. 833/2014, reporting operators have to report “to the competent authority of the Member State where they are resident or located, and simultaneously to the Commission”. Contact details of competent NCAs and of the Commission are provided for in Annex I of Regulation 833/2014.
Regarding which national competent authority to report to and from an enforcement perspective, it matters that reporting lines point to the competent national authority that supervise and can enforce the reporting obligations. From an enforcement perspective, it matters that reporting lines point to the NCA that supervise and can enforce the reporting obligations. For instance, a branch of a financial institution headquartered in Member State A which is located in Member State B is supervised for its financial sanctions compliance by authorities in Member State B. It should therefore address its reports on frozen assets to the NCA in Member State B, unless itopts for group level reporting.
Reporting on group level (e.g a financial institution headquartered in Member State A reporting on group level to the NCA in Member State A for its operations in Member States A, B, C… ): reporting on group level could be possible on condition that NCAs in other Member States than the Member State where report is addressed are informed beforehand and receive a copy of the report indicating the respective national breakdown. The common template for reporting immobilised assets has been developed and is available on the website of the European Commission, DG FISMA.