With the increasingly important role that international sanctions continue to play in society, the Netherlands is currently preparing to update and future-proof its domestic sanctions regime. Below we have summarized the proposed changes and provided an update.
International sanctions imposed by the United Nations, the United States and the European Union have become more extensive and complex over the past decade. The high number of EU sanctions packages against Russia are a good example. These developments place increasingly high demands on the national implementation and enforcement of sanctions. Also for the Netherlands which resulted in the government’s plan to improve and strengthen the legal framework for sanctions in the Netherlands in a modernized sanctions act called “International Sanctions Act” (in Dutch: Wet Internationale Sanctiemaatregelen).
Currently, the Sanctions Act 1977 forms the link between international sanctions and the Dutch national legal system. According to the explanatory memorandum for the International Sanctions Act, the Sanctions Act 1977 is outdated in several respects. These include the lack of adequate grounds for data exchange, the lack of administrative enforcement options, an inadequate management and administration system, and a fragmented system of reporting obligations. For these reasons, the government has considered it appropriate to enact the completely new International Sanctions Act.
Content and objective of the International Sanctions Act
As mentioned, the Sanctions Act 1977 is outdated and therefore the draft International Sanctions Measures Bill (“Bill”) repeals most of the 1977 Sanctions Act and introduces a new International Sanctions Act (only Section 5 of the Sanctions Act 1977, which deals with the supervision by the various Dutch ministries, will remain in force temporarily in an amended form).
In summary the Bill:
- modernizes the basis for the implementation of international sanctions;
- introduces administrative enforcement alongside the existing criminal law framework;
- contains provisions on the continuity and winding up of companies;
- provides for improved opportunities for data exchange between Dutch competent authorities (incl. linking sanctions in various public registers);
- introduces a central reporting point for sanctions;
- extends supervision of business operations, including to legal professions.
Although all the above proposals under the Bill should be considered as important for the modernized sanctions act, the introduction of administrative enforcement alongside the existing criminal law framework (point 2 above) is a very relevant development for business operators when being confronted with (alleged) sanctions violations in their international supply chains involving the Netherlands. The rationale behind this proposal is that administrative enforcement may be more appropriate for certain cases given the nature and severity of the sanctions violation.
Violations of sanctions measures
Violations of sanctions measures constitute an economic offence in the Netherlands within the meaning of the Economic Offences Act (also applies to export controls violations). Under the current Sanctions Act 1977, once international sanctions measures have been established, the necessary implementing measures are usually laid down in a ministerial regulation. This ministerial regulation then stipulates that it is prohibited to act in contravention of the relevant international sanctions measures (e.g. for the EU-Russia sanctions regime the “Sanctions regime for the territorial integrity of Ukraine 2014” has been implemented). Violation of these prohibitions is punishable under Article 1, under 1°, of the Economic Offences Act. Intentional violations of the aforementioned rules and regulations can be punished with imprisonment (max. six years), community service or a fine (max. 5th category). If there is no intent (misdemeanor), detention (max. 1 year), community service or a fine (max. 4th category) may be imposed.
It should be noted that the Netherlands Public Prosecution Service is responsible for the criminal prosecution of sanctions violations. On 1 January 2025 the “Guidelines on self-reporting, cooperation and self-investigation” also came into effect. These guidelines from the Netherlands Public Prosecution Service outline the framework and conditions for self-reporting and cooperating with a criminal investigation into (indications of) possible criminal offences (incl. sanctions violations) committed within the sphere of a legal entity. Self-reporting and cooperation mitigate the penal consequences. In view of the absence of official Voluntary Self Disclosure (“VSD”) rules (we only have unofficial VSD guidelines), this will add to the sanctions legal framework.
Introduction Dual Enforcement System: criminal and administrative enforcement
This Bill continues this system of criminalization (in conformity with Directive (EU) 2024/1226 for the partial harmonisation of sanctions enforcement across EU Member States). This means that (the above) criminal proceedings remain an option for violations of sanctions measures. The bill also introduces the possibility of taking administrative enforcement action against (certain) violations of sanctions, in addition to the options available under criminal law. In order to ensure that violations can be dealt with using sufficiently appropriate means, it has been decided to introduce administrative enforcement, namely the possibility of imposing an administrative order, an order subject to a penalty, or an administrative fine. The Bill states that this ‘Dual Enforcement System’ reflects the effective and efficient enforcement of sanctions standards and results in not only having criminal law for enforcement. Of course, some types of violation are considered so serious that administrative enforcement is not appropriate, for example in case of infringements relating to military goods. For minor and mild violations, it is desirable to have the option of taking administrative action. Administrative law allows individuals and companies to be corrected more quickly and proportionately in appropriate cases.
The Bill regulates the introduction of administrative enforcement by designating the following administrative bodies that can take administrative enforcement action:
- Dutch Customs (compliance with specific standards in areas such as the purchase, sale, import, export or transit, directly or indirectly, of goods and services in violation of applicable EU sanctions regulations);
- Investment Screening Bureau at the Ministry of Economic Affairs (administratively enforce specific standards concerning the ownership of or control over (unlisted) companies established in the Netherlands);
- Financial Supervision Authority (enforce compliance with specific standards from the EU sanctions regulations relating to the services provided by notaries (including candidate and deputy notaries), tax advisers, external auditors and tax consultants);
- Dean to be appointed by decision of the general council of The Netherlands Bar (administratively enforce compliance with specific standards from the EU sanctions regulations relating to the provision of services by lawyers).
The Bill also introduces a legal basis for designating other administrative bodies (by means of an order in council or ministerial regulation) that will have administrative enforcement instruments at their disposal. The government considers this basis necessary because it is impossible to predict in advance what sanctions will be imposed in the future, and which administrative bodies will be best equipped to implement them.
The introduction of a Dual Enforcement System must meet a number of requirements. First, the maximum administrative fines may not exceed the maximum criminal fines. It has therefore been decided to set the maximum administrative fines at the same level as the maximum criminal fines. Secondly, coordination between the enforcement authorities and the Netherlands Public Prosecution Service is necessary to prevent duplication and because no one may be punished twice for the same offence (ne bis in idem).
Legislative process
In July 2025, the Council of Ministers approved the submission of the International Sanctions Measures Bill to the Advisory Division of the Council of State. In December 2025, the Council of State published its advice on the Bill providing a number of comments and recommends to take these into account before submitting the proposal to the House of Representatives. As regards the introduction of the Dual Enforcement System, the Advisory Division notes that (other) designated administrative bodies will have substantial enforcement powers, namely the imposition of an administrative order, an order subject to a penalty and an administrative fine. The Advisory Division considers it desirable that, after the designation of administrative bodies by order in council or ministerial regulation, a bill should be submitted without delay to enshrine the competent administrative bodies in law.
We expect Dutch government to amend the Bill based on the advice from the Council of State, followed by a submission to the House of Representatives this year. After both the House of Representatives and the Senate accept the Bill, the International Sanctions Act can be implemented (expected 2026-2027).
Sanctions Compliance
The International Sanctions Act must improve and strengthen the legal framework for sanctions in the Netherlands. The introduction of administrative enforcement under a Dual Enforcement System should result in having certain sanctions violations be dealt with in a faster way and more proportionally. It should be emphasized that, if confronted with sanctions violations, the burden for companies (and individuals) under administrative enforcement can still be high, and there remains a risk of reputational damage.
Being compliant with sanctions legislation is of great importance for companies engaged in international trade. Companies should therefore be well aware of the risks related to sanctions and take measures to mitigate these risks. Internal control measures required for ensuring compliance with sanctions laws and regulations are key. Best practice shows that an Internal Compliance Program (“ICP”) provides for an in-house manual detailing the internal protocols and procedures put in place to deal with all risks relating to sanctions (as well for export controls). Knowledge on the possible consequences of sanctions violations and how to act (including VSD consideration) should be included in an ICP.
This publication is provided for your convenience and does not constitute legal advice.
More information
For detailed information on the previous 19 packages of restrictive measures against Russia, please see: EU sanctions measures against Russia. If you have any questions about the content of this article, please contact our specialists on international sanctions and export controls:
