European Union: European Commission proposed Directive on asset recovery and confiscation

On 25 May 2022, the European Commission proposed a Directive on asset recovery and confiscation (COM(2022) 245 final). The proposed Directive would establish EU-wide minimum rules on the tracing, identification, freezing, confiscation, and management of criminal property. The proposal would strengthen the mandate and cooperation of asset recovery offices and require each Member State to designate at least one such office to facilitate cross-border asset-tracing investigations. These offices would be tasked with tracing and identifying instrumentalities, proceeds, or other property that may become subject to a freezing or confiscation order and would support national authorities and the European Public Prosecutor’s Office (EPPO). The proposed Directive would also require Member States to designate asset management offices responsible for managing frozen or confiscated property. The rules would apply to violations of EU restrictive measures and would provide for confiscation of property of equivalent value and, under certain conditions, unexplained wealth. The proposal would cover all forms of criminal property, including digital and crypto-assets, where linked to criminal activity.