(1)

The United Nations Security Council (UNSC) has addressed the threat to the international peace and security posed by Al-Qaeda and ISIL (Da'esh) through the adoption of resolutions 1267 (1999), 1333 (2000), 1390 (2002) and 2253(2015).

(2)

Those resolutions are given effect in Union law by means of Common Position 2002/402/CFSP (2) concerning restrictive measures against members of the ISIL (Da'esh) and Al-Qaeda organisations, and other individuals, groups, undertakings and entities associated with them and by Council Regulation (EC) No 881/2002 (3).

(3)

On 20 September 2016, the Council adopted Decision (CFSP) 2016/1693 repealing and replacing Common Position 2002/402/CFSP.

(4)

Since that Decision contains additional measures which the Council has established in order to further fight the international terrorist threat posed by ISIL (Da'esh) and Al-Qaeda, as mandated by the UNSC, an asset freeze to target natural or legal persons, entities or bodies who fulfil the relevant criteria is introduced in order to further the fight against the international terrorist threat posed by ISIL (Da'esh) and Al-Qaeda. Regulatory action is necessary in order to implement them, in particular with a view to ensuring their uniform application by economic operators in all Member States.

(5)

This Regulation should be applied in accordance with the rights and principles recognised in particular by the Charter of Fundamental Rights of the European Union and in particular the right to an effective remedy and to a fair trial, the right to property and the right to protection of personal data.

(6)

The power to amend the list in Annex I to this Regulation should be exercised by the Council in view of the specific threat to international peace and security posed by ISIL (Da'esh) and Al-Qaeda and in order to ensure consistency with the process for amending and reviewing the Annex to Decision (CFSP) 2016/1693.

(7)

For the implementation of this Regulation, and to create maximum legal certainty within the Union, the names and other relevant data concerning natural and legal persons, entities and bodies whose funds and economic resources must be frozen in accordance with the Regulation, should be made public. Any processing of personal data of natural persons under this Regulation should be in conformity with Regulation (EC) No 45/2001 of the European Parliament and of the Council (4) and Directive 95/46/EC of the European Parliament and of the Council (5).

(8)

Member States and the Commission should inform each other of the measures taken under this Regulation and of other relevant information at their disposal in connection with this Regulation.

(9)

Member States should lay down rules on sanctions applicable to infringements of the provisions of this Regulation and make sure that they are implemented. Those sanctions must be effective, proportionate and dissuasive.

(10)

In order to ensure that the measures provided for in this Regulation are effective, it should enter into force immediately,

(a)

‘funds’ means financial assets and economic benefits of every kind, including but not limited to cash, cheques, claims on money, drafts, money orders and other payment instruments; deposits with financial institutions or other entities, balances on accounts, debts and debt obligations; publicly and privately traded securities and debt instruments, including stocks and shares, certificates presenting securities, bonds, notes, warrants, debentures, derivatives contracts; interest, dividends or other income on or value accruing from or generated by assets; credit, right of set-off, guarantees, performance bonds or other financial commitments; letters of credit, bills of lading, bills of sale; documents evidencing an interest in funds or financial resources, and any other instrument of export-financing;

(b)

‘economic resources’ means assets of every kind, whether tangible or intangible, movable or immovable, which are not funds but can be used to obtain funds, goods or services;

(c)

‘freezing of funds’ means preventing any move, transfer, alteration, use of, access to, or dealing with funds in any way that would result in any change in their volume, amount, location, ownership, possession, character, destination or other change that would enable the funds to be used, including portfolio management;

(d)

‘freezing of economic resources’ means preventing their use to obtain funds, goods or services in any way, including, but not limited to, by selling, hiring or mortgaging them;

(e)

‘competent authorities’ means the competent authorities of the Member States as identified on the websites listed in Annex II;

(f)

‘claim’ means any claim, whether asserted by legal proceedings or not, made before or after the date on which a person, entity or body has been listed in Annex I, under or in connection with a contract or transaction, and includes in particular:

(a)

necessary to satisfy the basic needs of natural or legal persons, entities or bodies listed in Annex I, and dependent family members of such natural persons, including payments for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges;

(b)

intended exclusively for payment of reasonable professional fees or reimbursement of incurred expenses associated with the provision of legal services;

(c)

intended exclusively for payment of fees or service charges for routine holding or maintenance of frozen funds or economic resources; or

(d)

necessary for extraordinary expenses.

(a)

the funds or economic resources are subject of an arbitral decision rendered prior to the date on which the natural or legal person, entity or body was listed in Annex I, or of a judicial or administrative decision rendered in the Union, or a judicial decision enforceable in the Member State concerned, prior to, on or after that date;

(b)

the funds or economic resources will be used exclusively to satisfy claims secured by such a decision or recognised as valid in such a decision, within the limits set by applicable laws and regulations governing the rights of persons having such claims;

(c)

the decision is not for the benefit of a natural or legal person, entity or body listed in Annex I;

(d)

recognising the decision is not contrary to public policy in the Member State concerned.

(a)

the funds or economic resources shall be used for a payment by a natural or legal person, entity or body listed in Annex I; and

(b)

the payment is not in breach of Article 2(2).

(a)

to provide technical assistance, brokering services and other services related to military activities and to the provision, manufacture, maintenance and use of goods and technology listed in the Common Military List (6), including weapons and ammunition, military vehicles and equipment, paramilitary equipment, and spare parts for the aforementioned, directly or indirectly to any natural or legal person, entity or body in Annex I;

(b)

to provide financing or financial assistance related to military activities, including in particular grants, loans and export credit insurance, as well as insurance and reinsurance for any sale, supply, transfer or export of arms and related materiel, or for the provision of related technical assistance, brokering services and other services directly or indirectly to any person, entity or body in Annex I.

(a)

within the territory of the Union, including its airspace;

(b)

on board any aircraft or any vessel under the jurisdiction of a Member State;

(c)

to any person inside or outside the territory of the Union who is a national of a Member State;

(d)

to any legal person, entity or body, inside or outside the territory of the Union, which is incorporated or constituted under the law of a Member State;

(e)

to any legal person, entity or body in respect of any business done in whole or in part within the Union.