CJEU: EU can freeze Russian assets held by trusts
Key Questions
What did the CJEU rule about EU sanctions on Russian assets held in trusts?
The court ruled that sanctions can apply to trust-held assets even without a direct link to sanctioned persons. Needlessly complex structures were flagged as indicators of ownership opacity.
How does the CJEU decision affect beneficial ownership checks?
The ruling underscores the need for rigorous counterparty due diligence to uncover hidden links to sanctioned individuals. Complex trust arrangements are now viewed as potential red flags requiring closer scrutiny.
Does the ruling apply only to assets directly owned by sanctioned Russians?
No, the CJEU clarified that sanctions extend to assets in trusts without requiring a direct ownership link. This broadens the scope for freezing Russian-linked holdings under EU measures.
Court rules sanctions apply to trust-held assets even without direct link to sanctioned persons. 'Needlessly complex structures' noted as red flag for ownership opacity; critical for counterparty due diligence and beneficial ownership checks.