Proposal for a Directive on asset recovery and confiscation

Summary:

Legislative initiative tabled by the European Commission on 25 May 2022, aimed at reinforcing rules on asset recovery and confiscation to restrictive measures imposed by the European Union (EU).

Further information:

Council Decision 2007/845/JHA focused on establishing and cooperation between Asset Recovery Offices. Directive 2014/42/EU - also known as Confiscation Directive - set minimum rules for the freezing, management, and confiscation of criminal assets. Despite this, the need to reinforce the EU asset recovery regime has long been recognised by EU institutions. The EU Strategy to tackle Organised Crime 2021-2025 highlighted that depriving criminals from illicit profits is essential to disrupt the activities of criminal groups and to prevent their infiltration into the legal economy.

The proposed Directive aims to strengthen the capabilities of competent authorities to identify, freeze and manage assets, and reinforce and extend confiscation capabilities so as to cover all relevant criminal activities carried out by organised crime groups. The draft law also aims to improve cooperation between authorities involved in asset recovery and promote a more strategic approach to asset recovery. Finally, it sets out provisions to enable the swift tracing and identification of property owned or controlled by persons or entities subject to restrictive measures imposed by the European Union (EU), including through cooperation with third countries.

The proposed Directive was put forward by the European Commission  on 25 May 2022, alongside a draft Council Decision aimed at including the violation of regimes of restrictive measures to the areas of crime laid down in Article 83(1) of the Treaty on the Functioning of the European Union (TFEU). This would allow the draft Directive to apply to violations of sanction regimes.

Official

European Commission: Home Affairs: Confiscation and asset recovery https://ec.europa.eu/home-affairs/policies/internal-security/organised-crime-and-human-trafficking/confiscation-and-asset-recovery_en

European Commission: Press Release, 25/05/2022: Ukraine: The Commission proposes rules on freezing and confiscating assets of oligarchs violating restrictive measures and of criminals https://ec.europa.eu/commission/presscorner/detail/en/ip_22_3264

European Commission: Questions and Answers: The Commission proposes rules on freezing and confiscating assets of oligarchs violating restrictive measures and of criminals (25 May 2022) https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_3265

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News

Politico, 24/05/2022: EU moves to confiscate Russian oligarchs’ assets https://www.politico.eu/article/eu-moves-to-confiscate-russian-oligarchs-assets/

Bloomberg, 24/05/2022: Europe Looks to Beef Up Powers to Seize Russian Assets https://www.bloomberg.com/news/articles/2022-05-24/europe-looks-to-beef-up-its-powers-to-seize-russian-assets

EurActiv, 25/05/2022: EU to unveil plans for seizing Russian assets frozen by sanctions https://www.euractiv.com/section/europe-s-east/news/eu-to-unveil-plans-for-seizing-russian-assets-frozen-by-sanctions/

Reuters, 25/05/2022: EU to make breaking sanctions against Russia a crime, seizing assets easier https://www.reuters.com/world/europe/eu-make-breaking-sanctions-against-russia-crime-seizing-assets-easier-2022-05-25/

Associated Press, 25/05/2022: EU seeks more clout against sanctioned Russian oligarchs https://apnews.com/article/russia-ukraine-politics-european-commission-union-aed093d1f80896b2d5e268be255cee49

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Commentary and Analysis

Transparency International, 25/05/2022: Transparency International EU welcomes Commission asset recovery proposal but warns that some provisions fall short https://transparency.eu/transparency-international-eu-welcomes-commission-asset-recovery-proposal-but-warns-that-some-provisions-fall-short/

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