The European Union faces continuing challenges in seizing proceeds from organized crime, with estimates from the European Commission indicating annual illicit earnings around 139,000 euros. Yet only a small portion—about 2.2 percent of assets—was frozen between 2010 and 2014, and merely 1.1 percent was confiscated. This gap is drawing attention to forthcoming EU legislation intended to change the balance and strengthen asset recovery across member states.
The European Parliament’s civil liberties committee introduced new rules aimed at accelerating the freezing and seizure of criminal assets. The goal is to enable swifter action that helps potential victims receive rapid compensation throughout the EU, while limiting criminals’ ability to reinvest their earnings in legitimate markets.
The report’s author, Romanian conservative Loránt Vincze, stressed that the draft expands the scope of the current Directive to include additional offenses, bolsters authorities responsible for detecting and managing assets, broadens access to critical databases for asset-recovery agencies, prioritizes victim compensation, and enhances cooperation among national authorities and EU bodies.
Asset Recovery and Confiscation
In December 2021, the European Parliament called for harmonization of the EU framework on asset recovery and confiscation. The European Commission subsequently recommended reinforcing these rules as part of the EU Strategy (2021-2025) to curb organized crime.
Developments accelerated after the Ukraine crisis highlighted the need to improve asset tracking and enforcement. Alongside the current proposal, Members of the European Parliament are advancing legislation to harmonize definitions and sanctions for sanctions violations and related offenses.
broad support
The new directive received broad backing with 50 votes in favor, 4 abstentions, and 1 vote against. Its aim is to speed up asset attachment and confiscation while closing legal gaps that hinder enforcement.
Compared with existing rules, the measure would extend to additional offenses such as firearm smuggling linked to criminal organizations and violations of EU sanctions. Brussels has proposed decriminalizing certain activities across the union last year. MEPs recommend including crimes such as illegal trafficking of nuclear material within the jurisdiction of international mechanisms and safeguarding operational tasks in the fight against cross-border crime.
The civil liberties commission emphasizes coverage of European sanctions violations, nuclear material smuggling, and sabotage, along with crimes under the jurisdiction of the International Criminal Court.
Asset Recovery Offices
Provisions would allow confiscation with third-party assistance and, in some cases where conviction is not possible due to illness or death, to proceed with asset recovery. Parliament aims to ensure that victims receive compensation before confiscation, especially in cross-border cases, and to permit confiscated assets to be used for public or social purposes.
Additionally, the legislation would standardize authorities’ powers to conduct cross-border investigations more effectively. Asset-recovery offices would be established by member states to ensure access to essential information, including property records, securities and currency data, customs data, and annual financial statements of companies. To prevent asset deterioration, member states would set up specialized units to manage confiscated assets.