European Union (EU) member states have reached an agreement on new legislation that grants governments the power to freeze and confiscate unexplained wealth suspected to be linked to criminal activities. In a press release, the EU Council announced that mandatory rules have been established to trace, identify, freeze, confiscate, and manage assets deemed as criminal property in an escalated effort to combat organized crime.
Under the newly agreed-upon text, member states must take comprehensive measures to enable the freezing of property with the ultimate goal of eventual confiscation. These measures also aim to facilitate a final conviction in the event of a criminal offense. Furthermore, governments will not only confiscate criminal money but will also adopt rules for the management of confiscated assets, ensuring that the property seized is equivalent to the value derived from the criminal activities.
The press release highlights a groundbreaking element of the legislation, which is the introduction of a rule pertaining to the confiscation of unexplained wealth. This provision allows the confiscation of property identified during investigations into criminal offenses, provided that a national court is satisfied that the property in question is derived from criminal activities committed within the scope of a criminal organization and that those activities result in substantial economic benefit. The agreement emphasizes the importance of incorporating procedural safeguards.
In cases where wealth or property is transferred to a third party, the new measures empower governments to confiscate such assets if they determine that the recipient was aware or should have been aware that the transfer was intended to avoid confiscation.
Félix Bolaños, the Spanish Minister for Justice, emphasized the significance of recovering proceeds from criminal activities, stating that only with the means to reclaim these profits can governments effectively combat organized crime.
The foundations of this legislation were laid in mid-2023, and it specifically includes crypto assets. The agreement will now undergo the endorsement process by member states’ representatives within the Council. Once approved, the text will proceed through the formal adoption process by both the Council and the European Parliament.
This new development in the EU presents a concerted effort to tackle the issue of unexplained wealth tied to criminal activities. By establishing rules for the tracing, freezing, and confiscation of assets, member states aim to disrupt the financial infrastructure that supports organized crime. The legislation seeks to address the concerns surrounding the transfer of wealth to third parties as a means of evading confiscation. With these measures, EU governments hope to make significant strides in combating organized crime and securing justice for the victims impacted by criminal activities.
In an ever-evolving landscape of crime and technology, the EU’s initiative demonstrates a determination to stay ahead of illicit practices. By adopting these measures and incorporating procedural safeguards, member states are committed to protecting the integrity of their financial systems and ensuring that criminals cannot enjoy the illicit gains resulting from their activities.
