On May 2, 2024, EU CNCL issued final Dir 2024/1260 of Apr. 24 in the Official Journal.
Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with the directive by Nov. 23, 2026; it shall enter into force on 20th day following that of its publication in the Official Journal, May 22, 2024.
On Jun. 9, EU CNCL agreed negotiating position on asset confiscation.
Council agrees negotiating position on Freezing and confiscating criminal money.
Follows EC May 2022 rules on freezing and confiscation of assets, see #138733.
People profiteering from doing business with persons or companies on EU sanction lists will see yields being seized same way as traffickers in human beings or drug cartels.
The new law will also come with obligations for member states to ensure that the administrations dealing with tracing, freezing and managing criminal money have qualified staff and appropriate financial, technical and technological resources.
Asset Recovery Offices
Once adopted, new law will result in more competences of the asset recovery offices, to make sure that national administrations have the tools to go after criminal money.
The new rules will facilitate cross-border cooperation of these offices; information sharing between asset recovery offices in different member states will be enhanced.
In order to allow these asset recovery offices to perform their tasks, member state governments will have to make sure to give them access to relevant national databases and registers; in some cases, access should be immediate and direct.
Confiscation of Unexplained Wealth
Because crime by nature is a clandestine business it is not always possible to link property that is uncovered during a criminal investigation to a specific criminal activity.
A new rule on the confiscation of unexplained wealth will allow, under certain conditions, confiscation of assets based on involvement in organized crime activities.
This form of confiscation will not require a criminal conviction; it can, however, only happen if court is convinced that property in question in derived from criminal conduct.
Asset Management
Member states will be required to designate authorities (asset management offices) to manage frozen or confiscated property, either through direct management or through providing support and expertise to other bodies responsible for the management.
Member states will also be required to enable transfer or sale of frozen property even before a final confiscation under certain conditions, e.g. when property is perishable.
Next Steps
On the basis of the general approach member states concluded, Council will be able to start negotiations with the European Parliament in order to settle on a final legal text.
Dec. 2023 EP, EU CNCL Agreement
On Dec. 12, 2023, EU CMSN welcomed the political agreement reached between the EP and EU CNCL on updated rules on asset recovery and confiscation.
New Directive will limit capacity of criminals to maintain and expand criminal activities as well as to increase corruption and infiltrate the economy by investing illegal gains.
Proposed rules also cover violation of restrictive measures, ensuring effective tracing, freezing, management and confiscation of benefits coming from violating sanctions.
The political agreement is now subject to formal approval by the co-legislators.
The Directive will enter into force 20 days after publication in the official journal.
Member states will have 30 months to transpose the provisions into national law.
Jan. 2024 EU CNCL Offer Letter to EP
On Jan. 29, 2024, EU CNCL issued note attaching habitual offer letter to Parliament.
Mar. 13, 2024 EP Adopted Text
On Mar. 13, 2024, EP voted to approve first reading position from inter-institutional negotiations on new legislation to boost freezing and confiscation of criminal assets.
New directive covers a wider range of crimes committed within framework of a criminal organization, such as trafficking in human beings, drugs, firearms, money-laundering.
The law would also crack down on cases where confiscation is evaded with the help of a third person, and allow confiscation in certain cases where conviction is not possible.
To prevent assets from degrading, member states would have to set up dedicated offices to manage confiscated assets, tools to manage information related to them.
Mar. 18, 2024 EU CNCL Update
On Mar. 18, 2024, EU CNCL issued note concerning outcome of the EP first reading.
Parliament's position reflects what had been previously agreed between institutions.
The Council should therefore be in a position to approve the Parliament's position.
Act would then be adopted in wording which corresponds to the Parliament's position.
Apr. 12, 2024 EU CNCL Adoption
On Apr. 12, 2024, EU CNCL confirmed adoption of law which sets out EU-wide minimum rules (PE-CONS 3/24) on the tracing, identification, freezing, confiscation and management of criminal property in connection with a wide range of crimes.
Directive will better equip member states in their fight against organized crime and the associated illegal profits; will also oblige EU countries to ensure that authorities have resources they need for their activities; rules will also apply to violation of sanctions.
Directive will enter into force on 20th day following publication in the Official Journal.
Member states will have 30 months to incorporate the provisions of the directive.
Apr. 24, 2024 Result of Voting
On Apr. 24, 2024, EU CNCL issued note attaching result of voting on legislative act (PE-CONS 3/1/24 REV 1); members voted 25 in favor; 2 not participating.
May 2024 Official Journal
On May 2, 2024, EU CNCL issued final Dir 2024/1260 of Apr. 24 in the Official Journal.
Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with the directive by Nov. 23, 2026; it shall enter into force on 20th day following that of its publication in the Official Journal, May 22, 2024.
