A quote from the Counterterrorism Blog, 3 September 2008

In a devastating blow to existing international financial sanctions against terrorist groups, the EU's highest court has today overturned the sanctions program imposed by the European Union on Osama bin Laden, Al-Qaeda and the Taliban. The ruling by the European Court of Justice annulled the EU's freezing of the funds of Yassin Al-Kadi, a Saudi businessman who has been on terrorist financier black-lists since his listing as a "Specially Designated Global Terrorist" by the U.S. Treasury in October 2001. […]

The ruling was not unexpected. It follows closely the logic and reasoning of the recommendation made by the EU courts Advocate General, Poiares Maduro, in January. The result, however, represents a damaging outcome for efforts to curtail terrorist financing, in practice, wiping out the existing international sanctions regime, not only against Al Qaeda, but against any and all individuals subject to economic sanctions. […]

The immediate practical impact of this ruling remains fuzzy indeed, even if the medium-term implications are clear. Each EU member state has independent obligations to enforce UN Security Council Resolutions. Despite the Court of Justice ruling breaks, the UN order continues to require U.N. member states to freeze assets of people and entities designated by the UN for funding terror groups. The contradiction between the UN resolution requiring asset freezes, and the EU ruling, finding the EU sanctions invalid given the lack of due process, provides a further reason the countries that are part of the EU will need to develop a process solution promptly.