EUR-Lex - 32002L0047 - EN Avis juridique important | 32002L0047 Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements Official Journal L 168 , 27/06/2002 P. 0043 - 0050 Directive 2002/47/EC of the European Parliament and of the Councilof 6 June 2002on financial collateral arrangementsTHE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 95 thereof,Having regard to the proposal from the Commission(1),Having regard to the opinion of the European Central Bank(2),Having regard to the opinion of the Economic and Social Committee(3),Acting in accordance with the procedure laid down in Article 251 of the Treaty(4),Whereas:(1) Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems(5) constituted a milestone in establishing a sound legal framework for payment and securities settlement systems. Implementation of that Directive has demonstrated the importance of limiting systemic risk inherent in such systems stemming from the different influence of several jurisdictions, and the benefits of common rules in relation to collateral constituted to such systems.(2) In its communication of 11 May 1999 to the European Parliament and to the Council on financial services: implementing the framework for financial markets: action plan, the Commission undertook, after consultation with market experts and national authorities, to work on further proposals for legislative action on collateral urging further progress in the field of collateral, beyond Directive 98/26/EC.(3) A Community regime should be created for the provision of securities and cash as collateral under both security interest and title transfer structures including repurchase agreements (repos). This will contribute to the integration and cost-efficiency of the financial market as well as to the stability of the financial system in the Community, thereby supporting the freedom to provide services and the free movement of capital in the single market in financial services. This Directive focuses on bilateral financial collateral arrangements.(4) This Directive is adopted in a European legal context which consists in particular of the said Directive 98/26/EC as well as Directive 2001/24/EC of the European Parliament and of the Council of 4 April 2001 on the reorganisation and winding up of credit institutions(6), Directive 2001/17/EC of the European Parliament and of the Council of 19 March 2001 on the reorganisation and winding-up of insurance undertakings(7) and Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings(8). This Directive is in line with the general pattern of these previous legal acts and is not opposed to it. Indeed, this Directive complements these existing legal acts by dealing with further issues and going beyond them in connection with particular matters already dealt with by these legal acts.(5) In order to improve the legal certainty of financial collateral arrangements, Member States should ensure that certain provisions of insolvency law do not apply to such arrangements, in particular, those that would inhibit the effective realisation of financial collateral or cast doubt on the validity of current techniques such as bilateral close-out netting, the provision of additional collateral in the form of top-up collateral and substitution of collateral.(6) This Directive does not address rights which any person may have in respect of assets provided as financial collateral, and which arise otherwise than under the terms of the financial collateral arrangement and otherwise than on the basis of any legal provision or rule of law arising by reason of the commencement or continuation of winding-up proceedings or reorganisation measures, such as restitution arising from mistake, error or lack of capacity.(7) The principle in Directive 98/26/EC, whereby the law applicable to book entry securities provided as collateral is the law of the jurisdiction where the relevant register, account or centralised deposit system is located, should be extended in order to create legal certainty regarding the use of such securities held in a cross-border context and used as financial collateral under the scope of this Directive.(8) The lex rei sitae rule, according to which the applicable law for determining whether a financial collateral arrangement is properly perfected and therefore good against third parties is the law of the country where the financial collateral is located, is currently recognised by all Member States. Without affecting the application of this Directive to directly-held securities, the location of book entry securities provided as financial collateral and held through one or more intermediaries should be determined. If the collateral taker has a valid and effective collateral arrangement according to the governing law of the country in which the relevant account is maintained, then the validity against any competing title or interest and the enforceability of the collateral should be governed solely by the law of that country, thus preventing legal uncertainty as a result of other unforeseen legislation.(9) In order to limit the administrative burdens for parties using financial collateral under the scope of this Directive, the only perfection requirement which national law may impose in respect of financial collateral should be that the financial collateral is delivered, transferred, held, registered or otherwise designated so as to be in the possession or under the control of the collateral taker or of a person acting on the collateral taker's behalf while not excluding collateral techniques where the collateral provider is allowed to substitute collateral or to withdraw excess collateral.(10) For the same reasons, the creation, validity, perfection, enforceability or admissibility in evidence of a financial collateral arrangement, or the provision of financial collateral under a financial collateral arrangement, should not be made dependent on the performance of any formal act such as the execution of any document in a specific form or in a particular manner, the making of any filing with an official or public body or registration in a public register, advertisement in a newspaper or journal, in an official register or publication or in any other matter, notification to a public officer or the provision of evidence in a particular form as to the date of execution of a document or instrument, the amount of the relevant financial obligations or any other matter. This Directive must however provide a balance between market efficiency and the safety of the parties to the arrangement and third parties, thereby avoiding inter alia the risk of fraud. This balance should be achieved through the scope of this Directive covering only those financial collateral arrangements which provide for some form of dispossession, i.e. the provision of the financial collateral, and where the provision of the financial collateral can be evidenced in writing or in a durable medium, ensuring thereby the traceability of that collateral. For the purpose of this Directive, acts required under the law of a Member State as conditions for transferring or creating a security interest on financial instruments, other than book entry securities, such as endorsement in the case of instruments to order, or recording on the issuer's register in the case of registered instruments, should not be considered as formal acts.(11) Moreover, this Directive should protect only financial collateral arrangements which can be evidenced. Such evidence can be given in writing or in any other legally enforceable manner provided by the law which is applicable to the financial collateral arrangement.(12) The simplification of the use of financial collateral through the limitation of administrative burdens promotes the efficiency of the cross-border operations of the European Central Bank and the national central banks of Member States participating in the economic and monetary union, necessary for the implementation of the common monetary policy. Furthermore, the provision of limited protection of financial collateral arrangements from some rules of insolvency law in addition supports the wider aspect of the common monetary policy, where the participants in the money market balance the overall amount of liquidity in the market among themselves, by cross-border transactions backed by collateral.(13) This Directive seeks to protect the validity of financial collateral arrangements which are based upon the transfer of the full ownership of the financial collateral, such as by eliminating the so-called re-characterisation of such financial collateral arrangements (including repurchase agreements) as security interests.(14) The enforceability of bilateral close-out netting should be protected, not only as an enforcement mechanism for title transfer financial collateral arrangements including repurchase agreements but more widely, where close-out netting forms part of a financial collateral arrangement. Sound risk management practices commonly used in the financial market should be protected by enabling participants to manage and reduce their credit exposures arising from all kinds of financial transactions on a net basis, where the credit exposure is calculated by combining the estimated current exposures under all outstanding transactions with a counterparty, setting off reciprocal items to produce a single aggregated amount that is compared with the current value of the collateral.(15) This Directive should be without prejudice to any restrictions or requirements under national law on bringing into account claims, on obligations to set-off, or on netting, for example relating to their reciprocity or the fact that they have been concluded prior to when the collateral taker knew or ought to have known of the commencement (or of any mandatory legal act leading to the commencement) of winding-up proceedings or reorganisation measures in respect of the collateral provider.(16) The sound market practice favoured by regulators whereby participants in the financial market use top-up financial collateral arrangements to manage and limit their credit risk to each other by mark-to-market calculations of the current market value of the credit exposure and the value of the financial collateral and accordingly ask for top-up financial collateral or return the surplus of financial collateral should be protected against certain automatic avoidance rules. The same applies to the possibility of substituting for assets provided as financial collateral other assets of the same value. The intention is merely that the provision of top-up or substitution financial collateral cannot be questioned on the sole basis that the relevant financial obligations existed before that financial collateral was provided, or that the financial collateral was provided during a prescribed period. However, this does not prejudice the possibility of questioning under national law the financial collateral arrangement and the provision of financial collateral as part of the initial provision, top-up or substitution of financial collateral, for example where this has been intentionally done to the detriment of the other creditors (this covers inter alia actions based on fraud or similar avoidance rules which may apply in a prescribed period).(17) This Directive provides for rapid and non-formalistic enforcement procedures in order to safeguard financial stability and limit contagion effects in case of a default of a party to a financial collateral arrangement. However, this Directive balances the latter objectives with the protection of the collateral provider and third parties by explicitly confirming the possibility for Member States to keep or introduce in their national legislation an a posteriori control which the Courts can exercise in relation to the realisation or valuation of financial collateral and the calculation of the relevant financial obligations. Such control should allow for the judicial authorities to verify that the realisation or valuation has been conducted in a commercially reasonable manner.(18) It should be possible to provide cash as collateral under both title transfer and secured structures respectively protected by the recognition of netting or by the pledge of cash collateral. Cash refers only to money which is represented by a credit to an account, or similar claims on repayment of money (such as money market deposits), thus explicitly excluding banknotes.(19) This Directive provides for a right of use in case of security financial collateral arrangements, which increases liquidity in the financial market stemming from such reuse of "pledged" securities. This reuse however should be without prejudice to national legislation about separation of assets and unfair treatment of creditors.(20) This Directive does not prejudice the operation and effect of the contractual terms of financial instruments provided as financial collateral, such as rights and obligations and other conditions contained in the terms of issue and any other rights and obligations and other conditions which apply between the issuers and holders of such instruments.(21) This Act complies with the fundamental rights and follows the principles laid down in particular in the Charter of Fundamental Rights of the European Union.(22) Since the objective of the proposed action, namely to create a minimum regime relating to the use of financial collateral, cannot be sufficiently achieved by the Member States and can therefore, by reason of the scale and effects of the action, be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve that objective,HAVE ADOPTED THIS DIRECTIVE:Article 1Subject matter and scope1. This Directive lays down a Community regime applicable to financial collateral arrangements which satisfy the requirements set out in paragraphs 2 and 5 and to financial collateral in accordance with the conditions set out in paragraphs 4 and 5.2. The collateral taker and the collateral provider must each belong to one of the following categories:(a) a public authority (excluding publicly guaranteed undertakings unless they fall under points (b) to (e)) including:(i) public sector bodies of Member States charged with or intervening in the management of public debt, and(ii) public sector bodies of Member States authorised to hold accounts for customers;(b) a central bank, the European Central Bank, the Bank for International Settlements, a multilateral development bank as defined in Article 1(19) of Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions(9), the International Monetary Fund and the European Investment Bank;(c) a financial institution subject to prudential supervision including:(i) a credit institution as defined in Article 1(1) of Directive 2000/12/EC, including the institutions listed in Article 2(3) of that Directive;(ii) an investment firm as defined in Article 1(2) of Council Directive 93/22/EEC of 10 May 1993 on investment services in the securities field(10);(iii) a financial institution as defined in Article 1(5) of Directive 2000/12/EC;(iv) an insurance undertaking as defined in Article 1(a) of Council Directive 92/49/EEC of 18 June 1992 on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance(11) and a life assurance undertaking as defined in Article 1(a) of Council Directive 92/96/EEC of 10 November 1992 on the coordination of laws, regulations and administrative provisions relating to direct life assurance(12);(v) an undertaking for collective investment in transferable securities (UCITS) as defined in Article 1(2) of Council Directive 85/611/EEC of 20 December 1985 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS)(13);(vi) a management company as defined in Article 1a(2) of Directive 85/611/EEC;(d) a central counterparty, settlement agent or clearing house, as defined respectively in Article 2(c), (d) and (e) of Directive 98/26/EC, including similar institutions regulated under national law acting in the futures, options and derivatives markets to the extent not covered by that Directive, and a person, other than a natural person, who acts in a trust or representative capacity on behalf of any one or more persons that includes any bondholders or holders of other forms of securitised debt or any institution as defined in points (a) to (d);(e) a person other than a natural person, including unincorporated firms and partnerships, provided that the other party is an institution as defined in points (a) to (d).3. Member States may exclude from the scope of this Directive financial collateral arrangements where one of the parties is a person mentioned in paragraph 2(e).If they make use of this option Member States shall inform the Commission which shall inform the other Member States thereof.4. (a) The financial collateral to be provided must consist of cash or financial instruments.(b) Member States may exclude from the scope of this Directive financial collateral consisting of the collateral provider's own shares, shares in affiliated undertakings within the meaning of seventh Council Directive 83/349/EEC of 13 June 1983 on consolidated accounts(14), and shares in undertakings whose exclusive purpose is to own means of production that are essential for the collateral provider's business or to own real property.5. This Directive applies to financial collateral once it has been provided and if that provision can be evidenced in writing.The evidencing of the provision of financial collateral must allow for the identification of the financial collateral to which it applies. For this purpose, it is sufficient to prove that the book entry securities collateral has been credited to, or forms a credit in, the relevant account and that the cash collateral has been credited to, or forms a credit in, a designated account.This Directive applies to financial collateral arrangements if that arrangement can be evidenced in writing or in a legally equivalent manner.Article 2Definitions1. For the purpose of this Directive:(a) "financial collateral arrangement" means a title transfer financial collateral arrangement or a security financial collateral arrangement whether or not these are covered by a master agreement or general terms and conditions;(b) "title transfer financial collateral arrangement" means an arrangement, including repurchase agreements, under which a collateral provider transfers full ownership of financial collateral to a collateral taker for the purpose of securing or otherwise covering the performance of relevant financial obligations;(c) "security financial collateral arrangement" means an arrangement under which a collateral provider provides financial collateral by way of security in favour of, or to, a collateral taker, and where the full ownership of the financial collateral remains with the collateral provider when the security right is established;(d) "cash" means money credited to an account in any currency, or similar claims for the repayment of money, such as money market deposits;(e) "financial instruments" means shares in companies and other securities equivalent to shares in companies and bonds and other forms of debt instruments if these are negotiable on the capital market, and any other securities which are normally dealt in and which give the right to acquire any such shares, bonds or other securities by subscription, purchase or exchange or which give rise to a cash settlement (excluding instruments of payment), including units in collective investment undertakings, money market instruments and claims relating to or rights in or in respect of any of the foregoing;(f) "relevant financial obligations" means the obligations which are secured by a financial collateral arrangement and which give a right to cash settlement and/or delivery of financial instruments.Relevant financial obligations may consist of or include:(i) present or future, actual or contingent or prospective obligations (including such obligations arising under a master agreement or similar arrangement);(ii) obligations owed to the collateral taker by a person other than the collateral provider; or(iii) obligations of a specified class or kind arising from time to time;(g) "book entry securities collateral" means financial collateral provided under a financial collateral arrangement which consists of financial instruments, title to which is evidenced by entries in a register or account maintained by or on behalf of an intermediary;(h) "relevant account" means in relation to book entry securities collateral which is subject to a financial collateral arrangement, the register or account - which may be maintained by the collateral taker - in which the entries are made by which that book entry securities collateral is provided to the collateral taker;(i) "equivalent collateral":(i) in relation to cash, means a payment of the same amount and in the same currency;(ii) in relation to financial instruments, means financial instruments of the same issuer or debtor, forming part of the same issue or class and of the same nominal amount, currency and description or, where a financial collateral arrangement provides for the transfer of other assets following the occurrence of any event relating to or affecting any financial instruments provided as financial collateral, those other assets;(j) "winding-up proceedings" means collective proceedings involving realisation of the assets and distribution of the proceeds among the creditors, shareholders or members as appropriate, which involve any intervention by administrative or judicial authorities, including where the collective proceedings are terminated by a composition or other analogous measure, whether or not they are founded on insolvency or are voluntary or compulsory;(k) "reorganisation measures" means measures which involve any intervention by administrative or judicial authorities which are intended to preserve or restore the financial situation and which affect pre-existing rights of third parties, including but not limited to measures involving a suspension of payments, suspension of enforcement measures or reduction of claims;(l) "enforcement event" means an event of default or any similar event as agreed between the parties on the occurrence of which, under the terms of a financial collateral arrangement or by operation of law, the collateral taker is entitled to realise or appropriate financial collateral or a close-out netting provision comes into effect;(m) "right of use" means the right of the collateral taker to use and dispose of financial collateral provided under a security financial collateral arrangement as the owner of it in accordance with the terms of the security financial collateral arrangement;(n) "close-out netting provision" means a provision of a financial collateral arrangement, or of an arrangement of which a financial collateral arrangement forms part, or, in the absence of any such provision, any statutory rule by which, on the occurrence of an enforcement event, whether through the operation of netting or set-off or otherwise:(i) the obligations of the parties are accelerated so as to be immediately due and expressed as an obligation to pay an amount representing their estimated current value, or are terminated and replaced by an obligation to pay such an amount; and/or(ii) an account is taken of what is due from each party to the other in respect of such obligations, and a net sum equal to the balance of the account is payable by the party from whom the larger amount is due to the other party.2. References in this Directive to financial collateral being "provided", or to the "provision" of financial collateral, are to the financial collateral being delivered, transferred, held, registered or otherwise designated so as to be in the possession or under the control of the collateral taker or of a person acting on the collateral taker's behalf. Any right of substitution or to withdraw excess financial collateral in favour of the collateral provider shall not prejudice the financial collateral having been provided to the collateral taker as mentioned in this Directive.3. References in this Directive to "writing" include recording by electronic means and any other durable medium.Article 3Formal requirements1. Member States shall not require that the creation, validity, perfection, enforceability or admissibility in evidence of a financial collateral arrangement or the provision of financial collateral under a financial collateral arrangement be dependent on the performance of any formal act.2. Paragraph 1 is without prejudice to the application of this Directive to financial collateral only once it has been provided and if that provision can be evidenced in writing and where the financial collateral arrangement can be evidenced in writing or in a legally equivalent manner.Article 4Enforcement of financial collateral arrangements1. Member States shall ensure that on the occurrence of an enforcement event, the collateral taker shall be able to realise in the following manners, any financial collateral provided under, and subject to the terms agreed in, a security financial collateral arrangement:(a) financial instruments by sale or appropriation and by setting off their value against, or applying their value in discharge of, the relevant financial obligations;(b) cash by setting off the amount against or applying it in discharge of the relevant financial obligations.2. Appropriation is possible only if:(a) this has been agreed by the parties in the security financial collateral arrangement; and(b) the parties have agreed in the security financial collateral arrangement on the valuation of the financial instruments.3. Member States which do not allow appropriation on 27 June 2002 are not obliged to recognise it.If they make use of this option, Member States shall inform the Commission which in turn shall inform the other Member States thereof.4. The manners of realising the financial collateral referred to in paragraph 1 shall, subject to the terms agreed in the security financial collateral arrangement, be without any requirement to the effect that:(a) prior notice of the intention to realise must have been given;(b) the terms of the realisation be approved by any court, public officer or other person;(c) the realisation be conducted by public auction or in any other prescribed manner; or(d) any additional time period must have elapsed.5. Member States shall ensure that a financial collateral arrangement can take effect in accordance with its terms notwithstanding the commencement or continuation of winding-up proceedings or reorganisation measures in respect of the collateral provider or collateral taker.6. This Article and Articles 5, 6 and 7 shall be without prejudice to any requirements under national law to the effect that the realisation or valuation of financial collateral and the calculation of the relevant financial obligations must be conducted in a commercially reasonable manner.Article 5Right of use of financial collateral under security financial collateral arrangements1. If and to the extent that the terms of a security financial collateral arrangement so provide, Member States shall ensure that the collateral taker is entitled to exercise a right of use in relation to financial collateral provided under the security financial collateral arrangement.2. Where a collateral taker exercises a right of use, he thereby incurs an obligation to transfer equivalent collateral to replace the original financial collateral at the latest on the due date for the performance of the relevant financial obligations covered by the security financial collateral arrangement.Alternatively, the collateral taker shall, on the due date for the performance of the relevant financial obligations, either transfer equivalent collateral, or, if and to the extent that the terms of a security financial collateral arrangement so provide, set off the value of the equivalent collateral against or apply it in discharge of the relevant financial obligations.3. The equivalent collateral transferred in discharge of an obligation as described in paragraph 2, first subparagraph, shall be subject to the same security financial collateral agreement to which the original financial collateral was subject and shall be treated as having been provided under the security financial collateral arrangement at the same time as the original financial collateral was first provided.4. Member States shall ensure that the use of financial collateral by the collateral taker according to this Article does not render invalid or unenforceable the rights of the collateral taker under the security financial collateral arrangement in relation to the financial collateral transferred by the collateral taker in discharge of an obligation as described in paragraph 2, first subparagraph.5. If an enforcement event occurs while an obligation as described in paragraph 2 first subparagraph remains outstanding, the obligation may be the subject of a close-out netting provision.Article 6Recognition of title transfer financial collateral arrangements1. Member States shall ensure that a title transfer financial collateral arrangement can take effect in accordance with its terms.2. If an enforcement event occurs while any obligation of the collateral taker to transfer equivalent collateral under a title transfer financial collateral arrangement remains outstanding, the obligation may be the subject of a close-out netting provision.Article 7Recognition of close-out netting provisions1. Member States shall ensure that a close-out netting provision can take effect in accordance with its terms:(a) notwithstanding the commencement or continuation of winding-up proceedings or reorganisation measures in respect of the collateral provider and/or the collateral taker; and/or(b) notwithstanding any purported assignment, judicial or other attachment or other disposition of or in respect of such rights.2. Member States shall ensure that the operation of a close-out netting provision may not be subject to any of the requirements that are mentioned in Article 4(4), unless otherwise agreed by the parties.Article 8Certain insolvency provisions disapplied1. Member States shall ensure that a financial collateral arrangement, as well as the provision of financial collateral under such arrangement, may not be declared invalid or void or be reversed on the sole basis that the financial collateral arrangement has come into existence, or the financial collateral has been provided:(a) on the day of the commencement of winding-up proceedings or reorganisation measures, but prior to the order or decree making that commencement; or(b) in a prescribed period prior to, and defined by reference to, the commencement of such proceedings or measures or by reference to the making of any order or decree or the taking of any other action or occurrence of any other event in the course of such proceedings or measures.2. Member States shall ensure that where a financial collateral arrangement or a relevant financial obligation has come into existence, or financial collateral has been provided on the day of, but after the moment of the commencement of, winding-up proceedings or reorganisation measures, it shall be legally enforceable and binding on third parties if the collateral taker can prove that he was not aware, nor should have been aware, of the commencement of such proceedings or measures.3. Where a financial collateral arrangement contains:(a) an obligation to provide financial collateral or additional financial collateral in order to take account of changes in the value of the financial collateral or in the amount of the relevant financial obligations, or(b) a right to withdraw financial collateral on providing, by way of substitution or exchange, financial collateral of substantially the same value,Member States shall ensure that the provision of financial collateral, additional financial collateral or substitute or replacement financial collateral under such an obligation or right shall not be treated as invalid or reversed or declared void on the sole basis that:(i) such provision was made on the day of the commencement of winding-up proceedings or reorganisation measures, but prior to the order or decree making that commencement or in a prescribed period prior to, and defined by reference to, the commencement of winding-up proceedings or reorganisation measures or by reference to the making of any order or decree or the taking of any other action or occurrence of any other event in the course of such proceedings or measures; and/or(ii) the relevant financial obligations were incurred prior to the date of the provision of the financial collateral, additional financial collateral or substitute or replacement financial collateral.4. Without prejudice to paragraphs 1, 2 and 3, this Directive leaves unaffected the general rules of national insolvency law in relation to the voidance of transactions entered into during the prescribed period referred to in paragraph 1(b) and in paragraph 3(i).Article 9Conflict of laws1. Any question with respect to any of the matters specified in paragraph 2 arising in relation to book entry securities collateral shall be governed by the law of the country in which the relevant account is maintained. The reference to the law of a country is a reference to its domestic law, disregarding any rule under which, in deciding the relevant question, reference should be made to the law of another country.2. The matters referred to in paragraph 1 are:(a) the legal nature and proprietary effects of book entry securities collateral;(b) the requirements for perfecting a financial collateral arrangement relating to book entry securities collateral and the provision of book entry securities collateral under such an arrangement, and more generally the completion of the steps necessary to render such an arrangement and provision effective against third parties;(c) whether a person's title to or interest in such book entry securities collateral is overridden by or subordinated to a competing title or interest, or a good faith acquisition has occurred;(d) the steps required for the realisation of book entry securities collateral following the occurrence of an enforcement event.Article 10Report by the CommissionNot later than 27 December 2006, the Commission shall present a report to the European Parliament and the Council on the application of this Directive, in particular on the application of Article 1(3), Article 4(3) and Article 5, accompanied where appropriate by proposals for its revision.Article 11ImplementationMember States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 27 December 2003 at the latest. They shall forthwith inform the Commission thereof.When Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such reference on the occasion of their official publication. Member States shall determine how such reference is to be made.Article 12Entry into forceThis Directive shall enter into force on the day of its publication in the Official Journal of the European Communities.Article 13AddresseesThis Directive is addressed to the Member States.Done at Brussels, 6 June 2002.For the European ParliamentThe PresidentP. CoxFor the CouncilThe PresidentA. M. Birulés Y Bertrán(1) OJ C 180 E, 26.6.2001, p. 312.(2) OJ C 196, 12.7.2001, p. 10.(3) OJ C 48, 21.2.2002, p. 1.(4) Opinion of the European Parliament of 13 December 2001 (not yet published in the Official Journal), Council Common Position of 5 March 2002 (not yet published in the Official Journal) and Decision of the European Parliament of 15 May 2002.(5) OJ L 166, 11.6.1998, p. 45.(6) OJ L 125, 5.5.2001, p. 15.(7) OJ L 110, 20.4.2001, p. 28.(8) OJ L 160, 30.6.2000, p. 1.(9) OJ L 126, 26.5.2000, p. 1. Directive as amended by Directive 2000/28/EC (OJ L 275, 27.10.2000, p. 37).(10) OJ L 141, 11.6.1993, p. 27. Directive as last amended by Directive 2000/64/EC of the European Parliament and of the Council (OJ L 290, 17.11.2000, p. 27).(11) OJ L 228, 11.8.1992, p. 1. Directive as last amended by Directive 2000/64/EC of the European Parliament and of the Council.(12) OJ L 360, 9.12.1992, p. 1. Directive as last amended by Directive 2000/64/EC of the European Parliament and of the Council.(13) OJ L 375, 31.12.1985, p. 3. Directive as last amended by Directive 2001/108/EC of the European Parliament and of the Council. (OJ L 41, 13.2.2002, p. 35).(14) OJ L 193, 18.7.1983, p. 1. Directive as last amended by Directive 2001/65/EC of the European Parliament and of the Council (OJ L 283, 27.10.2001, p. 28).

Summary: Financial collateral arrangements - improving legal clarity Financial collateral arrangements - improving legal clarity SUMMARY OF: Directive 2002/47/EC - financial collateral arrangements - improving legal clarity SUMMARY WHAT DOES THE DIRECTIVE DO? This Directive aims to create a clear uniform EU legal framework for the use of securities and cash as collateral* in financial transactions. KEY POINTS — The Directive applies to certain specified categories such as central banks and supervised financial institutions. EU countries may, however, exclude specific categories such as unincorporated firms i.e. that do not have the legal status of a company. — The Directive applies to financial collateral including cash and financial instruments such as shares and bonds. Certain opt-outs are permitted by EU countries such as the collateral provider's own shares. — The Directive sets down minimum formal requirements by EU countries concerning collateral arrangements including, for example, that such arrangements must be evidenced in writing or in a legally equivalent manner. — Enforcement of collateral arrangements by the collateral taker is possible, for example by sale or appropriation of the financial instruments. — The collateral taker has a contractually agreed right to use the financial collateral provided as if he were full owner. If he chooses to exercise this right, he is obliged to transfer back the equivalent amount of collateral. — EU countries must recognise close-out netting* arrangements, even if the collateral taker or provider is subject to insolvency proceedings or reorganisation. — EU countries are blocked from applying their national insolvency rules to financial collateral arrangements in certain cases. Such arrangements may not be declared invalid or void in order, for example, to take account of changes in market value. WHEN DOES THIS DIRECTIVE APPLY? From 27 June 2002. BACKGROUND European Commission website on financial collateral KEY TERMS * Financial collateral is the property (such as securities) provided by a borrower to a lender to minimise the risk of financial loss to the lender if the borrower fails to meet their financial obligations to the lender. * Close-out netting is a legal mechanism that reduces the risks between 2 counterparties. Upon the default of 1 of the 2 counterparties, all future claims and contractual relations between them become due, calculated, netted and then set off. What finally remains for actual payment can be a small fraction only of the initial gross claim between those 2 parties. ACT Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements REFERENCES Act Entry into force Deadline for transposition in the Member States Official Journal Directive 2002/47/EC 27.6.2002 27.12.2003 OJ L 168, 27.06.2002, pp. 43-50 Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal Directive 2009/44/EC 30.6.2009 30.12.2010 OJ L 146, 10.6.2009, pp. 37-43 Directive 2014/59/EU 2.7.2014 31.12.2014 OJ L 173, 12.6.2014, pp. 190-348 See consolidated version. RELATED ACTS Report from the Commission to the European Parliament and the Council: Evaluation Report on the Financial Collateral Arrangements Directive (2002/47/EC) (COM(2006) 833 final of 20.12.2006) last update 07.10.2015


EUR-Lex - 32002R0332 - EN Avis juridique important | 32002R0332 Council Regulation (EC) No 332/2002 of 18 February 2002 establishing a facility providing medium-term financial assistance for Member States' balances of payments Official Journal L 053 , 23/02/2002 P. 0001 - 0003 Council Regulation (EC) No 332/2002of 18 February 2002establishing a facility providing medium-term financial assistance for Member States' balances of paymentsTHE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 308 thereof,Having regard to the proposal from the Commission, presented following consultation with the Economic and Financial Committee(1),Having regard to the opinion of the European Parliament(2),Having regard to the opinion of the European Central Bank(3),Whereas:(1) The second subparagraph of Article 119(1) and Article 119(2) of the Treaty provide that, acting on a recommendation from the Commission made after consulting the Economic and Financial Committee, the Council will grant mutual assistance where a Member State is in difficulties or is seriously threatened with difficulties as regards its balance of payments. Article 119 does not define the instrument to be used for granting the mutual assistance envisaged.(2) It should be possible for the operation of lending to a Member State to take place soon enough to encourage that Member State to adopt, in good time in a situation where orderly exchange rate conditions prevail, economic policy measures likely to prevent the occurrence of an acute balance of payments crisis and to support its efforts towards convergence.(3) Each loan to a Member State should be linked to the adoption by that Member State of economic policy measures designed to re-establish or ensure a sustainable balance of payments situation and to adapt it to the gravity of the balance of payments situation in that State and to the way in which it develops.(4) Appropriate procedures and instruments should be provided for in advance to enable the Community and Member States to ensure that, if required, financial medium-term assistance is provided quickly, especially where circumstances call for immediate action.(5) In order to finance assistance that has been granted, the Community needs to be able to use its creditworthiness to borrow resources that will be placed at the disposal of the Member States concerned in the form of loans. Operations of this kind are necessary to the achievement of the objectives of the Community as defined in the Treaty, especially the harmonious development of economic activities in the Community as a whole.(6) To this end, a single facility providing medium-term financial assistance for Member States' balances of payments was established by Council Regulation (EEC) No 1969/88(4).(7) Since 1 January 1999 the Member States participating in the single currency no longer qualify for medium-term financial assistance. However, the financial assistance facility should be retained in order to meet not only the potential needs of the present Member States which have not adopted the euro but also the needs of new Member States until such time as they adopt the euro.(8) The introduction of the single currency has led to a substantial reduction in the number of Member States eligible for the instrument. A downwards revision of the present ceiling of EUR 16 billion is therefore justified. The loan ceiling should, though, be kept at a sufficiently high level in order to satisfy properly the simultaneous needs of several Member States. A reduction in the loan ceiling from EUR 16 billion to EUR 12 billion seems apt to meet this need and also to take account of forthcoming enlargements of the European Union.(9) The glaring imbalance between the number of potential beneficiaries of the loans during the third stage of economic and monetary union and the number of countries capable of financing them makes it difficult to maintain direct financing of loans granted by all the other Member States. These loans should therefore be financed exclusively by way of recourse to capital markets and financial institutions, these having now attained a stage of development and maturity which should enable them to undertake such financing.(10) The arrangements for using the facility should also be clarified in the light of experience gained and account should be taken of the development of international financial markets and of the technical possibilities and constraints inherent in recourse to these sources of financing.(11) It is for the Council to decide whether to grant a loan or appropriate financing facility, its average duration, its total amount and the amounts of the successive instalments. However, the characteristics of the instalments, duration and type of interest rate, should be fixed by common agreement between the beneficiary Member State and the Commission. If the Commission takes the view that the loan characteristics desired by that Member State result in financing that is incompatible with the technical constraints imposed by capital markets or financial institutions, it must be able to propose alternative financing arrangements.(12) In order to finance loans granted under this Regulation, the Commission should be authorised to contract on behalf of the European Community borrowings on capital markets or from financial institutions.(13) The financial assistance facility established by Regulation (EEC) No 1969/88 should be adapted accordingly. In the interests of clarity, that Regulation should be replaced.(14) For the adoption of this Regulation, which provides for the granting of Community loans financed exclusively with funds raised on the capital markets and not by the other Member States, the Treaty provides no powers other than those of Article 308,HAS ADOPTED THIS REGULATION:Article 11. A Community medium-term financial assistance facility enabling loans to be granted to one or more Member States which are experiencing, or are seriously threatened with, difficulties in their balance of current payments or capital movements shall be established. Only Member States which have not adopted the euro may benefit from this Community facility.The outstanding amount of loans to be granted to Member States under this facility shall be limited to EUR 12 billion in principal.2. To this end, in accordance with a decision adopted by the Council pursuant to Article 3 and after consulting the Economic and Financial Committee, the Commission shall be empowered on behalf of the European Community to contract borrowings on the capital markets or with financial institutions.Article 2Where a Member State which has not adopted the euro proposes to call upon sources of financing outside the Community which are subject to economic policy conditions, it shall first consult the Commission and the other Member States in order to examine, among other things, the possibilities available under the Community medium-term financial assistance facility. Such consultations shall be held within the Economic and Financial Committee, in accordance with Article 119 of the Treaty.Article 31. The medium-term financial assistance facility may be implemented by the Council on the initiative of:(a) the Commission, acting pursuant to Article 119 of the Treaty in agreement with the Member State seeking Community financing;(b) a Member State experiencing, or seriously threatened with, difficulties as regards its balance of current payments or capital movements.2. The Council, after examining the situation in the Member State seeking medium-term financial assistance and the adjustment or back-up programme presented in support of its application, shall decide, as a rule during the same meeting:(a) whether to grant a loan or appropriate financing facility, its amount and its average duration;(b) the economic policy conditions attaching to the medium-term financial assistance with a view to re-establishing or ensuring a sustainable balance of payments situation;(c) the techniques for disbursing the loan or financing facility, the release or drawing-down of which shall, as a rule, be by successive instalments, the release of each instalment being subject to verification of the results achieved in implementing the programme in terms of the objectives set.Article 4In cases where restrictions on capital movements are introduced or reintroduced pursuant to Article 120 of the Treaty during the period of the financial assistance, its conditions and arrangements shall be re-examined pursuant to Article 119 of the Treaty.Article 5The Commission shall take the necessary measures to verify at regular intervals, in collaboration with the Economic and Financial Committee, that the economic policy of the Member State in receipt of a Community loan accords with the adjustment or back-up programme and with any other conditions laid down by the Council pursuant to Article 3. To this end, the Member State shall place all the necessary information at the disposal of the Commission. On the basis of the findings of such verification, the Commission, after the Economic and Financial Committee has delivered an opinion, shall decide on the release of further instalments.The Council shall decide on any adjustments to be made to the initial economic policy conditions.Article 6Loans granted as medium-term financial assistance may be granted as consolidation of support made available by the European Central Bank under the very short-term financing facility.Article 71. The borrowing and lending operations referred to in Article 1 shall be carried out in euro. They shall use the same value date and shall not involve the Community in the transformation of maturities, in any interest rate risk, or in any other commercial risk.The characteristics of the successive instalments released by the Community under the financial assistance facility shall be negotiated between the Member State and the Commission. Where the Commission takes the view that the characteristics desired by the Member State will lead to Community financing that runs counter to the technical constraints imposed by financial markets or is such as to tarnish the reputation of the Community as a borrower on those same markets, it has the right to withhold its agreement and propose an alternative solution.Where a Member State receives a loan carrying an early repayment clause and decides to exercise this option, the Commission shall take the necessary steps.2. At the request of the debtor Member State and where circumstances permit an improvement in the interest rate on the loan, the Commission may refinance all or part of its initial borrowings or restructure the corresponding financial conditions.Refinancing or restructuring operations shall be carried out in accordance with the conditions set out in paragraph 1 and shall not have the effect of extending the average duration of the borrowing concerned or increasing the amount of capital outstanding at the date of the refinancing or restructuring.3. The costs incurred by the Community in concluding and carrying out each operation shall be borne by the beneficiary Member State.4. The Economic and Financial Committee shall be kept informed of developments in the operations referred to in the first subparagraph of paragraph 2.Article 8The Council shall adopt the decisions referred to in Articles 3 and 5, acting by qualified majority on a proposal from the Commission made after consulting the Economic and Financial Committee.Article 9The European Central Bank shall make the necessary arrangements for the administration of the loans.The funds shall be paid only for the purposes indicated in Article 1.Article 10Every three years the Council shall examine, on the basis of a report from the Commission and after the Economic and Financial Committee has delivered an opinion, whether the facility established still meets, in its principle, arrangements and ceiling, the need which led to its creation.Article 11Regulation (EEC) No 1969/88 is hereby repealed.Article 12This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Communities.This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 18 February 2002.For the CouncilThe PresidentJ. Piqué i Camps(1) OJ C 180 E, 26.6.2001, p. 199.(2) Opinion delivered on 6 September 2001 (not yet published in the Official Journal).(3) OJ C 151, 22.5.2001, p. 18.(4) OJ L 178, 8.7.1988, p. 1. Regulation as amended by the 1994 Act of Accession.

Summary: EU aid to non-euro area countries with trade deficit problems EU aid to non-euro area countries with trade deficit problems SUMMARY OF: Regulation (EC) No 332/2002 — EU aid to non-euro area countries with trade deficit problems SUMMARY WHAT DOES THIS REGULATION DO? It provides for financial aid to EU countries which have not adopted the euro and which are experiencing trade deficit* problems. KEY POINTS The regulation lays out the requirements for medium-term loans of up to €50 billion to non-euro area countries experiencing difficulties in their balance of payments. The procedure for granting the loan includes: initiation of the loan provision by the European Commission or relevant non-euro EU country; discussion by the EU country with the Commission of its financial needs and submission of a draft adjustment programme; on the basis of the adjustment programme, decision by Council of Ministers on whether to grant loan, the amount and duration; the drafting of a Memorandum of Understanding by the Commission and EU country setting out the terms decided by the Council. The characteristics of the loan include borrowing and lending in euro and at minimum risk for Commission. The European Central Bank (ECB) manages the loan on behalf of the EU. Costs of the loan are to be borne by the debtor EU country and the latter is required to open a special account with its national central bank for the management of the loan. The European Court of Auditors has the right to carry out a financial audit in the EU country if it considers this necessary for the proper management of the loan facility. Every 3 years, the Council, on the basis of report by the Commission, is required to examine whether the loan still meets the need which led to its creation. WHEN DOES THE REGULATION APPLY? It entered into force on 24 February 2002. KEY TERM * Trade deficit: this arises when the value of a country's imports is greater than that of its exports. ACT Council Regulation (EC) No 332/2002 of 18 February 2002 establishing a facility providing medium-term financial assistance for Member States’ balances of payments (OJ L 53, 23.2.2002, pp. 1-3) The successive amendments to Regulation (EC) No 332/2002 have been incorporated into the original text. This consolidated version is of documentary value only. RELATED ACTS Decision 2003/797/EC of the European Central Bank of 7 November 2003 concerning the administration of the borrowing-and-lending operations concluded by the European Community under the medium-term financial assistance facility (ECB/2003/14) (OJ L 297, 15.11.2003, pp. 35-36). See consolidated version. last update 27.01.2016


EUR-Lex - 32001R2580 - EN Avis juridique important | 32001R2580 Council Regulation (EC) No 2580/2001 of 27 December 2001 on specific restrictive measures directed against certain persons and entities with a view to combating terrorism Official Journal L 344 , 28/12/2001 P. 0070 - 0075 Council Regulation (EC) No 2580/2001of 27 December 2001on specific restrictive measures directed against certain persons and entities with a view to combating terrorismTHE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Articles 60, 301 and 308 thereof,Having regard to Common Position 2001/931/CFSP on the application of specific measures to combat terrorism(1), adopted by the Council on 27 December 2001,Having regard to the proposal from the Commission,Having regard to the opinion of the European Parliament(2),Whereas:(1) At its extraordinary meeting on 21 September 2001, the European Council declared that terrorism is a real challenge to the world and to Europe and that the fight against terrorism will be a priority objective of the European Union.(2) The European Council declared that combating the funding of terrorism is a decisive aspect of the fight against terrorism and called upon the Council to take the necessary measures to combat any form of financing for terrorist activities.(3) In its Resolution 1373(2001), the United Nations Security Council decided on 28 September 2001 that all States should implement a freezing of funds and other financial assets or economic resources as against persons who commit, or attempt to commit, terrorist acts or who participate in or facilitate the commission of such acts.(4) In addition, the Security Council decided that measures should be taken to prohibit funds and other financial assets or economic resources from being made available for the benefit of such persons, and to prohibit financial or other related services from being rendered for the benefit of such persons.(5) Action by the Community is necessary in order to implement the CFSP aspects of Common Position 2001/931/CFSP.(6) This Regulation is a measure needed at Community level and complementary to administrative and judicial procedures regarding terrorist organisations in the European Union and third countries.(7) Community territory is deemed to encompass, for the purposes of this Regulation, all the territories of the Member States to which the Treaty is applicable, under the conditions laid down in that Treaty.(8) With a view to protecting the interests of the Community, certain exceptions may be granted.(9) As regards the procedure for establishing and amending the list referred to in Article 2(3) of this Regulation, the Council should exercise the corresponding implementing powers itself in view of the specific means available to its members for that purpose.(10) Circumvention of this Regulation should be prevented by an adequate system of information and, where appropriate, remedial measures, including additional Community legislation.(11) The competent authorities of the Member States should, where necessary, be empowered to ensure compliance with the provisions of this Regulation.(12) Member States should lay down rules on sanctions applicable to infringements of the provisions of this Regulation and ensure that they are implemented. Those sanctions must be effective, proportionate and dissuasive.(13) The Commission and the Member States should inform each other of the measures taken under this Regulation and of other relevant information at their disposal in connection with this Regulation.(14) The list referred to in Article 2(3) of this Regulation may include persons and entities linked or related to third countries as well as those who otherwise are the focus of the CFSP aspects of Common Position 2001/931/CFSP. For the adoption of provisions in this Regulation concerning the latter, the Treaty does not provide powers other than those under Article 308.(15) The European Community has already implemented UNSCR 1267(1999) and 1333(2000) by adopting Regulation (EC) No 467/2001(3) freezing the assets of certain persons and groups and therefore those persons and groups are not covered by this Regulation,HAS ADOPTED THIS REGULATION:Article 1For the purpose of this Regulation, the following definitions shall apply:1. "Funds, other financial assets and economic resources" means assets of every kind, whether tangible or intangible, movable or immovable, however acquired, and legal documents or instruments in any form, including electronic or digital, evidencing title to, or interest in, such assets, including, but not limited to, bank credits, travellers' cheques, bank cheques, money orders, shares, securities, bonds, drafts and letters of credit.2. "Freezing of funds, other financial assets and economic resources" means the prevention of any move, transfer, alteration, use of 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.3. "Financial services" means any service of a financial nature, including all insurance and insurance-related services, and all banking and other financial services (excluding insurance) as follows:Insurance and insurance-related services(i) Direct insurance (including co-insurance):(A) life assurance;(B) non-life;(ii) Reinsurance and retrocession;(iii) Insurance intermediation, such as brokerage and agency;(iv) Services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services.Banking and other financial services (excluding insurance)(v) Acceptance of deposits and other repayable funds;(vi) Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction;(vii) Financial leasing;(viii) All payment and money transmission services, including credit, charge and debit cards, travellers' cheques and bankers' drafts;(ix) Guarantees and commitments;(x) Trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following:(A) money market instruments (including cheques, bills, certificates of deposits);(B) foreign exchange;(C) derivative products including, but not limited to, futures and options;(D) exchange rate and interest rate instruments, including products such as swaps and forward rate agreements;(E) transferable securities;(F) other negotiable instruments and financial assets, including bullion;(xi) Participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues;(xii) Money brokering;(xiii) Asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services;(xiv) Settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments;(xv) Provision and transfer of financial information, and financial data processing and related software by suppliers of other financial services;(xvi) Advisory, intermediation and other auxiliary financial services on all the activities listed in subparagraphs (v) to (xv), including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy.4. For the purposes of this Regulation, the definition of "terrorist act" shall be the one contained in Article 1(3) of Common Position 2001/931/CFSP.5. "Owning a legal person, group or entity" means being in possession of 50 % or more of the proprietary rights of a legal person, group or entity, or having a majority interest therein.6. "Controlling a legal person, group or entity" means any of the following:(a) having the right to appoint or remove a majority of the members of the administrative, management or supervisory body of such legal person, group or entity;(b) having appointed solely as a result of the exercise of one's voting rights a majority of the members of the administrative, management or supervisory bodies of a legal person, group or entity who have held office during the present and previous financial year;(c) controlling alone, pursuant to an agreement with other shareholders in or members of a legal person, group or entity, a majority of shareholders' or members' voting rights in that legal person, group or entity;(d) having the right to exercise a dominant influence over a legal person, group or entity, pursuant to an agreement entered into with that legal person, group or entity, or to a provision in its Memorandum or Articles of Association, where the law governing that legal person, group or entity permits its being subject to such agreement or provision;(e) having the power to exercise the right to exercise a dominant influence referred to in point (d), without being the holder of that right;(f) having the right to use all or part of the assets of a legal person, group or entity;(g) managing the business of a legal person, group or entity on a unified basis, while publishing consolidated accounts;(h) sharing jointly and severally the financial liabilities of a legal person, group or entity, or guaranteeing them.Article 21. Except as permitted under Articles 5 and 6:(a) all funds, other financial assets and economic resources belonging to, or owned or held by, a natural or legal person, group or entity included in the list referred to in paragraph 3 shall be frozen;(b) no funds, other financial assets and economic resources shall be made available, directly or indirectly, to, or for the benefit of, a natural or legal person, group or entity included in the list referred to in paragraph 3.2. Except as permitted under Articles 5 and 6, it shall be prohibited to provide financial services to, or for the benefit of, a natural or legal person, group or entity included in the list referred to in paragraph 3.3. The Council, acting by unanimity, shall establish, review and amend the list of persons, groups and entities to which this Regulation applies, in accordance with the provisions laid down in Article 1(4), (5) and (6) of Common Position 2001/931/CFSP; such list shall consist of:(i) natural persons committing, or attempting to commit, participating in or facilitating the commission of any act of terrorism;(ii) legal persons, groups or entities committing, or attempting to commit, participating in or facilitating the commission of any act of terrorism;(iii) legal persons, groups or entities owned or controlled by one or more natural or legal persons, groups or entities referred to in points (i) and (ii); or(iv) natural legal persons, groups or entities acting on behalf of or at the direction of one or more natural or legal persons, groups or entities referred to in points (i) and (ii).Article 31. The participation, knowingly and intentionally, in activities, the object or effect of which is, directly or indirectly, to circumvent Article 2 shall be prohibited.2. Any information that the provisions of this Regulation are being, or have been, circumvented shall be notified to the competent authorities of the Member States listed in the Annex and to the Commission.Article 41. Without prejudice to the applicable rules concerning reporting, confidentiality and professional secrecy and to the provisions of Article 284 of the Treaty, banks, other financial institutions, insurance companies, and other bodies and persons shall:- provide immediately any information which would facilitate compliance with this Regulation, such as accounts and amounts frozen in accordance with Article 2 and transactions executed pursuant to Articles 5 and 6:- to the competent authorities of the Member States listed in the Annex where they are resident or located, and- through these competent authorities, to the Commission,- cooperate with the competent authorities listed in the Annex in any verification of this information.2. Any information provided or received in accordance with this Article shall be used only for the purposes for which it was provided or received.3. Any information directly received by the Commission shall be made available to the competent authorities of the Member States concerned and to the Council.Article 51. Article 2(1)(b) shall not apply to the addition to frozen accounts of interest due on those accounts. Such interest shall also be frozen.2. The competent authorities of the Member States listed in the Annex may grant specific authorisations, under such conditions as they deem appropriate, in order to prevent the financing of acts of terrorism, for1. the use of frozen funds for essential human needs of a natural person included in the list referred to in Article 2(3) or a member of his family, including in particular payments for foodstuffs, medicines, the rent or mortgage for the family residence and fees and charges concerning medical treatment of members of that family, to be fulfilled within the Community;2. payments from frozen accounts for the following purposes:(a) payment of taxes, compulsory insurance premiums and fees for public utility services such as gas, water, electricity and telecommunications to be paid in the Community; and(b) payment of charges due to a financial institution in the Community for the maintenance of accounts;3. payments to a person, entity or body person included in the list referred to in Article 2(3), due under contracts, agreements or obligations which were concluded or arose before the entry into force of this Regulation provided that those payments are made into a frozen account within the Community.3. Requests for authorisations shall be made to the competent authority of the Member State in whose territory the funds, other financial assets or other economic resources have been frozen.Article 61. Notwithstanding the provisions of Article 2 and with a view to the protection of the interests of the Community, which include the interests of its citizens and residents, the competent authorities of a Member State may grant specific authorisations:- to unfreeze funds, other financial assets or other economic resources,- to make funds, other financial assets or other economic resources available to a person, entity or body included in the list referred to in Article 2(3), or- to render financial services to such person, entity or body,after consultation with the other Member States, the Council and the Commission in accordance with paragraph 2.2. A competent authority which receives a request for an authorisation referred to in paragraph 1 shall notify the competent authorities of the other Member States, the Council and the Commission, as listed in the Annex, of the grounds on which it intends to either reject the request or grant a specific authorisation, informing them of the conditions that it considers necessary in order to prevent the financing of acts of terrorism.The competent authority which intends to grant a specific authorisation shall take due account of comments made within two weeks by other Member States, the Council and the Commission.Article 7The Commission shall be empowered, on the basis of information supplied by Member States, to amend the Annex.Article 8The Member States, the Council and the Commission shall inform each other of the measures taken under this Regulation and supply each other with the relevant information at their disposal in connection with this Regulation, notably information received in accordance with Articles 3 and 4, and in respect of violation and enforcement problems or judgments handed down by national courts.Article 9Each Member State shall determine the sanctions to be imposed where the provisions of this Regulation are infringed. Such sanctions shall be effective, proportionate and dissuasive.Article 10This Regulation shall apply:1. within the territory of the Community, including its airspace,2. on board any aircraft or any vessel under the jurisdiction of a Member State,3. to any person elsewhere who is a national of a Member State,4. to any legal person, group or entity incorporated or constituted under the law of a Member State,5. to any legal person, group or entity doing business within the Community.Article 111. This Regulation shall enter into force on the day of its publication in the Official Journal of the European Communities.2. Within a period of one year from the entry into force of this Regulation, the Commission shall present a report on the impact of this Regulation and, if necessary, make proposals to amend it.This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 27 December 2001.For the CouncilThe PresidentL. Michel(1) See page 93 of this Official Journal.(2) Opinion delivered on 13 December 2001 (not yet published in the Official Journal).(3) OJ L 67, 9.3.2001, p. 1.ANNEXLIST OF COMPETENT AUTHORITIES REFERRED TO IN ARTICLES 3, 4 AND 5BELGIUMMinistère des finances Trésorerie avenue des Arts 30 B - 1040 Bruxelles Fax (32-2) 233 75 18DENMARKErhvervsfremmestyrelsen Dahlerups PakhusLangelinie Alle 17DK - 2100 København Ø Tel. (45) 35 46 60 00 Fax (45) 35 46 60 01GERMANY- concerning freeze of funds: Deutsche Bundesbank Wilhelm Eppsteinstr. 14 D - 60431 Frankfurt/Main Tel. (00-49-69) 95 66- concerning insurances: Bundesaufsichtsamt für das Versicherungswesen (BAV) Graurheindorfer Str. 108 D - 53117 Bonn Tel. (00-49-228) 42 28GREECEMinistry of National Economy General Directorate of Economic Policy 5 Nikis str. GR - 105 63 Athens Tel. (00-30-1) 333 27 81-2 Fax (00-30-1) 333 27 93Yπουργείο Εθνικήs Οικονομίαs Γενική Διεύθυνση Οικονομικήs Πολιτικήs Νίκηs 5, 10562 ΑΘΗΝΑ Τηλ.: (00-30-1) 333 27 81-2 Φαξ: (00-30-1) 333 27 93SPAINDirección General de Comercio e InversionesSubdirección General de Inversiores ExterioresMinisterio de Economía Paseo de la Castellana, 162 E - 28046 Madrid Tel. (00-34) 91 349 39 83 Fax (00-34) 91 349 35 62Dirección General del Tesoro y Política FinancieraSubdirección General de Inspección y Control de Movimientos de CapitalesMinisterio de Economía Paseo del Prado, 6 E - 28014 Madrid Tel. (00-34) 91 209 95 11 Fax (00-34) 91 209 96 56FRANCEMinistère de l'économie, des finances et de l'industrie Direction du TrésorService des affaires européennes et internationalesSous-direction E139, rue du Bercy F - 75572 Paris Cedex 12 Tel. (33-1) 44 87 17 17 Fax (33-1) 53 18 36 15IRLANDCentral Bank of Ireland Financial Markets Department PO Box 559 Dame Street Dublin 2 Tel. (353-1) 671 66 66Department of Foreign AffairsBilateral Economic Relations Division76-78 Harcourt Street Dublin 2 Tel. (353-1) 408 24 92ITALYMinistero dell'Economia e delle Finanze ...LUXEMBOURGMinistère des affaires étrangères, du commerce extérieur, de la coopération, de l'action humanitaire et de la défense Direction des relations économiques internationales BP 1602 L - 1016 Luxembourg Tel. (352) 478-1 ou 478-2350 Fax (352) 22 20 48Ministère des Finances 3 rue de la Congrégation L - 1352 Luxembourg Tel. (352) 478-2712 Fax (352) 47 52 41NETHERLANDSMinisterie van Financiën Directie Wetgeving, Juridische en Bestuurlijke Zaken Postbus 20201 2500 EE Den Haag Nederland Tel. (31-70) 342 82 27 Fax (31-70) 342 79 05AUSTRIA- Article 3 Bundesministerium für Inneres - Bundeskriminalamt A - 1090 Wien Josef-Holaubek-Platz 1 Tel. 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(358-9) 13 41 57 07 and (358-9) 62 98 40SWEDEN- Article 3 Rikspolisstyrelsen (RPS) Box 12256 102 26 Stockholm tfn 08-401 90 00 fax 08-401 99 00- Articles 4 and 6 Finanzinspektionen Box 7831 103 98 Stockholm tfn 08-787 80 00 fax 08-24 13 35- Article 5 Riksförsäkringsverket (RFV) 103 51 Stockholm tfn 08-786 90 00 fax 08-411 27 89UNITED KINGDOMHM Treasury International Financial Services Team 19 Allington Towers London SW1E 5EB United Kingdom Tel: (44-207) 270 55 50 Fax: (44-207) 270 43 65Bank of England Financial Sanctions Unit Threadneedle Street London EC2R 8AH United Kingdom Tel. (44-207) 601 46 07 Fax (44-207) 601 43 09EUROPEAN COMMUNITYCommission of the European Communities Directorate-General for External RelationsDirectorate CFSPUnit A.2/Mr A. de VriesRue de la Loi/Wetstraat 200 B - 1049 Bruxelles/Brussel Tel.: (32-2) 295 68 80 Fax: (32-2) 296 75 63 E-mail: anthonius-de-vries@cec.eu.int

Summary: Restrictive measures to combat terrorism Restrictive measures to combat terrorism SUMMARY OF: Regulation (EC) No 2580/2001 on specific restrictive measures directed against certain persons and entities with a view to combating terrorism WHAT IS THE AIM OF THE REGULATION? It aims to prevent and ban the financing of terrorist acts*. This regulation was adopted on the basis of Common Position 2001/931/CFSP. KEY POINTS EU countries decide unanimously the individuals, groups and entities covered by the legislation. The list consists of natural and legal individuals, group or entities committing, attempting to commit, participate in or facilitate acts of terrorism, or controlled by, or acting on behalf of, any of those groups. All funds, financial assets and economic resources* belonging to, owned or held by anyone or any body on the proscribed list are frozen and may not be made available to anyone else. It is an offence to knowingly and intentionally try to avoid the freezing of any assets. EU countries may allow frozen funds to be used, under specific conditions, for: essential personal needs, such as paying for food, medicines or accommodation;taxes, insurance premiums and public utilities such as gas, water, electricity and telecommunications, and bank charges;contracts concluded before the legislation came into force. Banks, insurance companies and other financial institutions must provide any relevant information on frozen accounts to national authorities. The legislation applies: within the EU, including its airspace and on any aircraft or vessel under an EU country’s jurisdiction;to any national of an EU country;to any legal person, group or entity based in, or doing business within, the EU. In December 2001, EU governments agreed to draw up of a list of individuals, groups and entities involved in terrorist acts whose funds and financial assets must be frozen (Common Position 2001/931/CFSP). FROM WHEN DOES THE REGULATION APPLY? It has applied since 28 December 2001. BACKGROUND In September 2001, after the 11/9 attacks, government leaders made the fight against terrorism one of the EU’s priorities. Combating terrorism funding is a major way of achieving this. In the same month, the United Nations Security Council backed a freeze on all financial assets and economic resources used to commit terrorist acts. KEY TERMS Terrorist acts: intentional actions which may seriously damage a country or international organisation and which are considered an offence under national law. Funds, other financial assets and economic resources: assets of every kind, whether tangible or intangible, movable or immovable. MAIN DOCUMENT Council Regulation (EC) No 2580/2001 of 27 December 2001 on specific restrictive measures directed against certain persons and entities with a view to combating terrorism (OJ L 344, 28.12.2001, pp. 70-75) RELATED DOCUMENTS Council Common Position 2001/931/CFSP of 27 December 2001 on the application of specific measures to combat terrorism (OJ L 344, 28.12.2001, pp. 93-96) last update 09.01.2017


EUR-Lex - 32001E0931 - EN Avis juridique important | 32001E0931 Council Common Position of 27 December 2001 on the application of specific measures to combat terrorism Official Journal L 344 , 28/12/2001 P. 0093 - 0096 Council Common Positionof 27 December 2001on the application of specific measures to combat terrorism(2001/931/CFSP)THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty on European Union, and in particular Articles 15 and 34 thereof,Whereas:(1) At its extraordinary meeting on 21 September 2001, the European Council declared that terrorism is a real challenge to the world and to Europe and that the fight against terrorism will be a priority objective of the European Union.(2) On 28 September 2001, the United Nations Security Council adopted Resolution 1373(2001) laying out wide-ranging strategies to combat terrorism and in particular the fight against the financing of terrorism.(3) On 8 October 2001, the Council reiterated the Union's determination to attack the sources which fund terrorism, in close cooperation with the United States.(4) On 26 February 2001, pursuant to UNSC Resolution 1333(2000), the Council adopted Common Position 2001/154/CFSP(1) which provides inter alia for the freezing of funds of Usama bin Laden and individuals and entities associated with him. Consequently, those persons, groups and entities are not covered by this Common Position.(5) The European Union should take additional measures in order to implement UNSC Resolution 1373(2001).(6) Member States have transmitted to the European Union the information necessary to implement some of those additional measures.(7) Action by the Community is necessary in order to implement some of those additional measures; action by the Member States is also necessary, in particular as far as the application of forms of police and judicial cooperation in criminal matters is concerned,HAS ADOPTED THIS COMMON POSITION:Article 11. This Common Position applies in accordance with the provisions of the following Articles to persons, groups and entities involved in terrorist acts and listed in the Annex.2. For the purposes of this Common Position, "persons, groups and entities involved in terrorist acts" shall mean:- persons who commit, or attempt to commit, terrorist acts or who participate in, or facilitate, the commission of terrorist acts,- groups and entities owned or controlled directly or indirectly by such persons; and persons, groups and entities acting on behalf of, or under the direction of, such persons, groups and entities, including funds derived or generated from property owned or controlled directly or indirectly by such persons and associated persons, groups and entities.3. For the purposes of this Common Position, "terrorist act" shall mean one of the following intentional acts, which, given its nature or its context, may seriously damage a country or an international organisation, as defined as an offence under national law, where committed with the aim of:(i) seriously intimidating a population, or(ii) unduly compelling a Government or an international organisation to perform or abstain from performing any act, or(iii) seriously destabilising or destroying the fundamental political, constitutional, economic or social structures of a country or an international organisation:(a) attacks upon a person's life which may cause death;(b) attacks upon the physical integrity of a person;(c) kidnapping or hostage taking;(d) causing extensive destruction to a Government or public facility, a transport system, an infrastructure facility, including an information system, a fixed platform located on the continental shelf, a public place or private property, likely to endanger human life or result in major economic loss;(e) seizure of aircraft, ships or other means of public or goods transport;(f) manufacture, possession, acquisition, transport, supply or use of weapons, explosives or of nuclear, biological or chemical weapons, as well as research into, and development of, biological and chemical weapons;(g) release of dangerous substances, or causing fires, explosions or floods the effect of which is to endanger human life;(h) interfering with or disrupting the supply of water, power or any other fundamental natural resource, the effect of which is to endanger human life;(i) threatening to commit any of the acts listed under (a) to (h);(j) directing a terrorist group;(k) participating in the activities of a terrorist group, including by supplying information or material resources, or by funding its activities in any way, with knowledge of the fact that such participation will contribute to the criminal activities of the group.For the purposes of this paragraph, "terrorist group" shall mean a structured group of more than two persons, established over a period of time and acting in concert to commit terrorist acts. "Structured group" means a group that is not randomly formed for the immediate commission of a terrorist act and that does not need to have formally defined roles for its members, continuity of its membership or a developed structure.4. The list in the Annex shall be drawn up on the basis of precise information or material in the relevant file which indicates that a decision has been taken by a competent authority in respect of the persons, groups and entities concerned, irrespective of whether it concerns the instigation of investigations or prosecution for a terrorist act, an attempt to perpetrate, participate in or facilitate such an act based on serious and credible evidence or clues, or condemnation for such deeds. Persons, groups and entities identified by the Security Council of the United Nations as being related to terrorism and against whom it has ordered sanctions may be included in the list.For the purposes of this paragraph "competent authority" shall mean a judicial authority, or, where judicial authorities have no competence in the area covered by this paragraph, an equivalent competent authority in that area.5. The Council shall work to ensure that names of natural or legal persons, groups or entities listed in the Annex have sufficient particulars appended to permit effective identification of specific human beings, legal persons, entities or bodies, thus facilitating the exculpation of those bearing the same or similar names.6. The names of persons and entities on the list in the Annex shall be reviewed at regular intervals and at least once every six months to ensure that there are grounds for keeping them on the list.Article 2The European Community, acting within the limits of the powers conferred on it by the Treaty establishing the European Community, shall order the freezing of the funds and other financial assets or economic resources of persons, groups and entities listed in the Annex.Article 3The European Community, acting within the limits of the powers conferred on it by the Treaty establishing the European Community, shall ensure that funds, financial assets or economic resources or financial or other related services will not be made available, directly or indirectly, for the benefit of persons, groups and entities listed in the Annex.Article 4Member States shall, through police and judicial cooperation in criminal matters within the framework of Title VI of the Treaty on European Union, afford each other the widest possible assistance in preventing and combating terrorist acts. To that end they shall, with respect to enquiries and proceedings conducted by their authorities in respect of any of the persons, groups and entities listed in the Annex, fully exploit, upon request, their existing powers in accordance with acts of the European Union and other international agreements, arrangements and conventions which are binding upon Member States.Article 5This Common Position shall take effect on the date of its adoption.Article 6This Common Position shall be kept under constant review.Article 7This Common Position shall be published in the Official Journal.Done at Brussels, 27 December 2001.For the CouncilThe PresidentL. Michel(1) OJ L 57, 27.2.2001, p. 1.ANNEXFirst list of persons, groups and entities referred to in Article 1(1)1. PERSONS*- ABAUNZA MARTINEZ, Javier (E.T.A. Activist) born 1.1.1965 in Guernica (Biscay), identity card No 78.865.882,*- ALBERDI URANGA, Itziar (E.T.A. Activist) born 7.10.1963 in Durango (Biscay), identity card No 78.865.693,*- ALBISU IRIARTE, Miguel (E.T.A. Activist; Member of Gestoras Pro-amnistía) born 7.6.1961 in San Sebastián (Guipúzcoa), identity card No 15.954.596,*- ALCALDE LINARES, Angel (E.T.A. Activist; Member of Herri Batasuna/E.H/Batasuna) born 2.5.1943 in Portugalete (Vizcaya), identity card 14.390.353,- AL-MUGHASSIL, Ahmad Ibrahim (a.k.a. ABU OMRAN; a.k.a.AL-MUGHASSIL, Ahmed Ibrahim) born 26.6.1967 in Qatif-Bab al Shamal, Saudi Arabia; citizen Saudi Arabia,- AL-NASSER, Abdelkarim Hussein Mohamed, born in Al Ihsa, Saudi Arabia; citizen Saudi Arabia,- AL YACOUB, Ibrahim Salih Mohammed, born 16.10.1996 in Tarut, Saudi Arabia; citizen Saudi Arabia,*- ARZALLUS TAPIA, Eusebio (E.T.A. Activist) born 8.11.1957 in Regil (Guipúzcoa), identity card No 15.927.207,- ATWA, Ali (a.k.a. BOUSLIM, Ammar Mansour; a.k.a. SALIM, Hassan Rostom), Lebanon, born 1960 in Lebanon; citizen Lebanon,*- ELCORO AYASTUY, Paulo (E.T.A. Activist; Member of Jarrai/Haika/Segi) born 22.10.1973 in Vergara (Guipúzcoa), identity card No 15.394.062,- EL-HOORIE, Ali Saed Bin Ali (a.k.a. AL-HOURI, Ali Saed Bin Ali; a.k.a EL-HOURI, Ali Saed Bin Ali) born 10.7.1965 alt. 11.7.1965 in El Dibabiya, Saudi Arabia; citizen Saudi Arabia,*- FIGAL ARRANZ, Antonio Agustín (E.T.A. Activist; Member of Kas/Ekin) born 2.12.1972 in Baracaldo (Biscay), identity card No 20.172.692,*- GOGEASCOECHEA ARRONATEGUI, Eneko (E.T.A. Activist), born 29.4.1967 in Guernica (Biscay), identity card No 44.556.097,*- GOIRICELAYA GONZALEZ, Cristina (E.T.A. Activist; Member of Herri Batasuna/E.H/Batasuna), born 23.12.1967 in Vergara (Guipúzcoa), identity card No 16.282.556,*- IPARRAGUIRRE GUENECHEA, Ma Soledad (E.T.A. Activist) born 25.4.1961 in Escoriaza (Navarre), identity card No 16.255.819,- IZZ-AL-DIN, Hasan (a.k.a GARBAYA, AHMED; a.k.a. SA-ID; a.k.a. SALWWAN, Samir), Lebanon, born 1963 in Lebanon, citizen Lebanon,- MOHAMMED, Khalid Shaikh (a.k.a. ALI, Salem; a.k.a. BIN KHALID, Fahd Bin Adballah; a.k.a. HENIN, Ashraf Refaat Nabith; a.k.a. WADOOD, Khalid Adbul) born 14.4.1965 alt. 1.3.1964 in Kuwait; citizen Kuwait,*- MORCILLO TORRES, Gracia (E.T.A. Activist; Member of Kas/Ekin) born 15.3.1967 in San Sebastián (Guipúzcoa), identity card No 72.439.052,*- MÚGICA GOÑI, Ainhoa (E.T.A. Activist) born 27.6.1970 in San Sebastián (Guipúzcoa), identity card No 34.101.243,- MUGHNIYAH, Imad Fa'iz (a.k.a. MUGHNIYAH, Imad Fayiz), Senior Intelligence Officer of HIZBALLAH, born 7.12.1962 in Tayr Dibba, Lebanon, passport No 432298 (Lebanon),*- MUÑOA ORDOZGOITI, Aloña (E.T.A. Activist; Member of Kas/Ekin) born 6.7.1976 in Segura (Guipúzcoa), identity card No 35.771.259,*- NARVÁEZ GOÑI, Juan Jesús (E.T.A. Activist) born 23.2.1961 in Pamplona (Navarra), identity card No 15.841.101,*- OLARRA GURIDI, Juan Antonio (E.T.A. Activist) born 11.9.1967 in San Sebastián (Guipúzcoa), identity card No 34.084.504,*- ORBE SEVILLANO, Zigor (E.T.A. Activist; Member of Jarrai/Haika/Segi) born 22.9.1975 in Basauri (Biscay), identity card No 45.622.851,*- OTEGUI UNANUE, Mikel (E.T.A. Activist; Member of Jarrai/Haika/Segi) born 8.10.1972 in Itsasondo (Guipúzcoa), identity card No 44.132.976,*- PEREZ ARAMBURU, Jon Iñaki (E.T.A. Activist; Member of Jarrai/Haika/Segi) born 18.9.1964 in San Sebastián (Guipúzcoa), identity card No 15.976.521,*- SAEZ DE EGUILAZ MURGUIONDO, Carlos (E.T.A. Activist; Member of Kas/Ekin) born 9.12.1963 in San Sebastián (Guipúzcoa), identity card No 15.962.687,*- URANGA ARTOLA, Kemen (E.T.A. Activist; Member of Herri Batasuna/E.H/Batasuna) born 25.5.1969 in Ondarroa (Biscay), identity card No 30.627.290,*- VILA MICHELENA, Fermín (E.T.A. Activist; Member of Kas/Ekin) born 12.3.1970 in Irún (Guipúzcoa), identity card No 15.254.214;2. GROUPS AND ENTITIES*- Continuity Irish Republican Army (CIRA)*- Euskadi Ta Askatasuna/Tierra Vasca y Libertad/Basque Fatherland and Liberty (E.T.A.)(The following organisations are part of the terrorist group E.T.A.: K.a.s., Xaki; Ekin, Jarrai-Haika-Segi, Gestoras pro-amnistía.)*- Grupos de Resistencia Antifascista Primero de Octubre/Antifascist Resistance Groups First of October (G.R.A.P.O.)- Hamas-Izz al-Din al-Qassem (terrorist wing of Hamas)*- Loyalist Volunteer Force (LVF)*- Orange Volunteers (OV)- Palestinian Islamic Jihad (PIJ)*- Real IRA*- Red Hand Defenders (RHD)*- Revolutionary Nuclei/Epanastatiki Pirines*- Revolutionary Organisation 17 November/Dekati Evdomi Noemvri*- Revolutionary Popular Struggle/Epanastatikos Laikos Agonas (ELA)*- Ulster Defence Association/Ulster Freedom Fighters (UDA/UFF)(1) Persons marked with an * shall be the subject of Article 4 only.

Summary: Freezing funds: list of terrorists and terrorist groups Freezing funds: list of terrorists and terrorist groups This common position provides for the drawing up of a list of individuals, groups and entities involved in terrorist acts whose funds and financial assets must be frozen. ACT Council Common Position 2001/931/CFSP of 27 December 2001 on the application of specific measures to combat terrorism. SUMMARY The extraordinary European Council of 21 September 2001 defined terrorism as one of the main challenges facing the world and identified the fight against terrorism as one of the European Union’s (EU) priority objectives. The purpose of this common position is to apply further measures to combat terrorism, in addition to the United Nations Security Council Resolution 1373 (2001). Specifically, it establishes a list of individuals, groups and entities involved in terrorism whose funds and other financial assets are to be frozen as part of the fight against the financing of terrorism. Definitions "Persons, groups and entities involved in terrorist acts" means individuals, groups and entities on whom there is accurate information proving that they have committed, are attempting to commit or are facilitating the commission of terrorist acts. "Terrorist acts" are defined as intentional acts that may seriously damage a country or an international organisation by intimidating a population, exerting undue compulsion of various types or by destabilising or destroying its fundamental political, constitutional, economic or social structures. The list of terrorist acts includes: attacks on a person’s life or physical integrity; kidnapping or hostage-taking; causing extensive destruction to a public or private facility, including information systems; seizure of means of public transport, such as aircrafts and ships; manufacture, possession, acquisition, transport or use of weapons, explosives, or nuclear, biological or chemical weapons; release of dangerous substances or causing fires, explosions or floods; interfering with or disrupting the supply of water, power or any other fundamental natural resource; directing or participating in the activities of a terrorist group, including by funding its activities or supplying material resources. Merely threatening to commit any of these criminal acts is also to be treated as a terrorist offence. The common position also defines "terrorist groups" as structured groups of persons, acting in concert to commit terrorist acts, regardless of their composition or the level of development of their structure. List of individuals and entities concerned The list annexed to the common position is drawn up on the basis of investigations carried out by the competent judicial and police authorities in EU countries. It must be revised at least every six months, so as to keep it up to date. The list comprises revolutionary activist groups, as well as the names of individuals belonging to such groups, including: CIRA (Continuity Irish Republican Army); E.T.A (Basque Fatherland and Liberty); G.R.A.P.O (the First of October Anti-Fascist Resistance Group); Hamas-Izz al-Din al-Qassem (terrorist wing of Hamas); LVF (Loyalist Volunteer Force) PIJ (Palestinian Islamic Jihad). Osama bin Laden and individuals and groups associated with him do not feature on the list, as they are already covered by Council Common Position 2002/402/CFSP of 27 May 2002 concerning restrictive measures against Osama bin Laden, members of the Al-Qaida organisation and the Taliban and other individuals, groups, undertakings and entities associated with them. The measures in this common position are applied by Regulation (EC) No 881/2002, adopted on the same date. Measures to be taken by the EU and its countries Acting within the limits of its powers, the EU is to freeze the funds and other financial assets of the individuals and groups on the list. It is also to ensure that these individuals and groups do not gain access to the frozen funds and assets. Through appropriate police and judicial cooperation, EU countries are to afford each other assistance in preventing and combating terrorist acts. For the purposes of investigating and prosecuting any of the persons and entities on the list, they may fully exploit the powers conferred on them by acts of the EU or under any other bilateral or international agreements. Similarly to this common position, Council Common Position 2001/930/CFSP of 27 December 2001 on combating terrorism provides for the freezing of the funds and other financial assets and economic resources of individuals and groups facilitating, attempting to commit or committing terrorist acts on the territory of the EU. References Act Entry into force Deadline for transposition in the Member States Official Journal Common Position 2001/931/CFSP 27.12.2001 - OJ L 344 of 28.12.2001 RELATED ACTS Council Regulation (EC) No 2580/2001 of 27 December 2001 on specific restrictive measures directed against certain persons and entities with a view to combating terrorism [Official Journal L 344 of 28.12.2001]. This regulation is a necessary EU-level measure that builds on the administrative and judicial procedures relating to terrorist organisations in EU and non-EU countries. It sets out to clamp down on any sort of financing of terrorist activities. To this end, it specifies what is meant by "funds and other financial assets" to be frozen, "banking and other financial services" and "controlling a legal person". The regulation also provides for exceptions to unfreeze assets in certain circumstances. The regulation provides for the establishment, review and amending of a list of persons, groups and entities to which it applies. This list has been updated by successive regulations and decisions. Council Decision 2005/671/JHA of 20 September 2005 on the exchange of information and cooperation concerning terrorist offences [Official Journal L 253 of 29.9.2005]. See also European Commission Directorate-General for Home Affairs website on the fight against the threat of terrorism Last updated: 30.03.2010