Ownership and control (EU sanctions)

Ownership and control is the test by which an EU asset freeze reaches an unlisted entity: it is enough that a listed person owns 50 percent or more of it, or controls it in law or in fact. Article 2 of Regulation 269/2014 freezes funds "belonging to, owned, held or controlled by" a listed person and prohibits making funds available to that person, directly or indirectly. The regulation sets no threshold. The Council's Best Practices for the effective implementation of restrictive measures does, and the Commission carries it into its FAQs (frequently asked questions). Until the update of July 3, 2024, ownership meant more than 50 percent of the proprietary rights or a majority interest; the Council now writes 50 percent or more, which matches the OFAC (Office of Foreign Assets Control) threshold. Control is assessed case by case, against an open list: the right to appoint or remove a majority of the members of the administrative or management bodies, control of a majority of voting rights through an agreement with other shareholders. Added to these are the power to exert a dominant influence, including de facto and without any legal title, and use of the company's assets by the listed person. The 2024 update added red-flag indicators. The document is not binding; only the Court of Justice interprets EU law, but national authorities follow it. The gap with OFAC's 50 Percent Rule lies in control: Washington counts stakes, Brussels also asks who decides. London uses more than 50 percent and, as a rule, does not add up the stakes of separate designated persons. For an insurer the question returns with every claim payment: the insured shipowner, the buyer of political risk cover, the payee of an indemnity can be frozen without appearing on any list. Paying it means making funds available to a listed person, and the mistake happens on a file that came back clean from screening.