Derogations 

All natural and legal persons must comply with EU Council Regulations relating to financial sanctions as soon as they are adopted. 

The sanctions measures used in a specific situation will vary depending on the objectives of the restrictive measures and their likely effectiveness in achieving these objectives under the particular circumstances, reflecting the EU’s targeted and differentiated approach. They include, inter alia, freezing of funds and economic resources, restrictions on admission, arms embargoes, embargoes on equipment that might be used for internal repression, other export restrictions, import restrictions, and flight bans. A ban on the provision of financial services, including in connection with bans on the export of certain products, has also been used as well as investment bans. In this context, sectoral bans or measures to prevent the misuse of equipment, technology or software for monitoring and interception of the Internet or of other forms of communication have also been used.

Once a person, entity or body has been listed under EU financial sanctions as a “designated person” and the measure relates to the freezing of funds and economic resources, there is a legal obligation not to transfer funds or make funds or economic resources available, directly or indirectly, to that designated person. The assets of the designated person must be frozen.

Many EU Regulations relating to financial sanctions contain derogation provisions. Such provisions provide that competent authorities of the Member States may authorise inter alia the release of certain frozen funds or economic resources, the making of funds or economic resources available, directly or indirectly, to or for the benefit of a designated person, or the ability to provide goods or services to a designated person, subject to conditions, as set out in the legal acts. The Central Bank of Ireland considers derogation requests in respect of financial sanctions.

The Central Bank takes derogation requests, submitted in connection with EU financial sanctions, extremely seriously. In considering derogation applications, we take into account the relevant derogation grounds set out in the EU Regulations. 

While the Central Bank seeks to ensure that all derogation requests are assessed in a timely manner it should be noted that derogation requests may take several weeks, and sometimes longer, to assess, depending on a number of factors, such as the quality of information and documentation submitted by the applicant, and potential engagement with relevant external stakeholders.

The Central Bank may authorise, under such conditions as deemed appropriate, the release of certain frozen funds or economic resources, if the Central Bank determines that the relevant conditions as set out in the relevant EU Financial Sanctions Regulation have been met.

How to make a derogation application relating to financial sanctions to the Central Bank

Derogation applications should be made to the Central Bank by using the below Derogation Application Form. Completed application forms, together with relevant information and documentation, should be submitted by email to: sanctions@centrabank.ie.

 

Sanctions Derogation Application Form | doc 726 KB