Confiscating crooks' assets to be easier across the EU

Directive on Freezing and Confiscation of Proceeds of Crime in the EU

Rules to make it easier for national authorities to trace, freeze, manage and confiscate criminal assets across the EU were backed by the Civil Liberties, Justice and Home Affairs Committee (LIBE) on Tuesday, after a Parliament-Council deal reached on 27 November.

The LIBE Committee adopted Monica Macovei's new Report today following the trilogue on the proposal for a Directive on freezing and confiscation of proceeds of crime in the European Union (44 votes in favour, 1 against, 1 abstentions).

"Today, less than 1% of the proceeds of crimes such as drug trafficking, counterfeiting, human trafficking and small arms smuggling are frozen and confiscated. Most of this ‘dirty money’ is laundered and channelled into the licit economy. This new Directive will enable national authorities to quickly identify and trace such assets in order to freeze, manage and confiscate them consistently across the EU", said Macovei.

Under the new Directive, extended confiscation will apply to more crimes than before: (i) active and passive corruption in the private and public sectors as well as active and passive corruption involving EU and Member State officials, (ii) participation in a criminal organisation, (iii) child pornography, and (iv) cyber criminality. The list of offences enabling extended confiscation can be widened by the European Commission to other crimes.

In addition, third party confiscation will be possible in cases of goods transferred for free or below the market price and when the third party knew or should have known that the purpose of the transfer or acquisition was to avoid confiscation. Confiscation measures were extended to cases of flight or illness of the suspected or accused person. The rights of victims of crime to seek compensation for their claims are now ensured by this Directive.

"Regarding further actions in the area of confiscation, a Joint Declaration by the Council and the European Parliament asks the European Commission to carry out a study on the benefits of confiscation without a criminal conviction, which will include cases of 'death' and other situations not covered by the new Directive", concluded Macovei.

The Plenary vote will take place in February 2014. Once approved by the Parliament and the Council, Member States will have 30 months to transpose the Directive into their national laws.