German authorities were correct to stop the sale of property in Berlin to a person who was on the European Union's terror blacklist, the European Court of Justice said Thursday.
The EU high court in Luxembourg said the transfer of ownership of buildings and land from two sisters, Gerda Moellendorf and Christiane Moellendorf-Niehuus, to a group of three people, one of whom was on the EU's terror list, would violate EU anti-terror measures.
The court said the purchase of the property to Ageel A. Al Ageel, whose assets are frozen under EU anti-terror legislation, was prohibited.
The other two buyers, Salem-Abdul Ghani El-Rafei and Kamal Rafehi, were not on the EU's blacklist.
Al Ageel was put on the EU's list in July, 2004 for his alleged association with al-Qaida.
The two women had appealed to a German court against a decision by the local land registry office, which refused in 2005 to give final approval to the real estate deal agreed to in 2000 and ordered them to return the EUR1.2 million paid for the property back to the buyers.
The EU court left it up to the German court to decide whether the sellers were obliged to repay the sale price to the buyers. However a legal expert at the court said the funds should be frozen in line with EU anti-terror legislation.