TechFlow news, according to dailyhodl, members of the Council of the European Union have reached a comprehensive new agreement on measures to freeze and confiscate so-called "unexplained assets." The agreement aims to revise policies regarding asset forfeiture, as the current framework requires updating. The proposal is titled "Draft Directive of the European Parliament and of the Council on Asset Recovery and Confiscation."
The directive seeks to clearly establish minimum rules for tracing, identifying, freezing, confiscating, and managing property within criminal proceedings, while strengthening the capacity of competent authorities to deprive criminals of proceeds from illegal activities. Property subject to freezing or confiscation across the EU will be broadly defined, including crypto assets.
Under the new rules, assets may be directly confiscated if there is no evidence demonstrating their lawful origin, or if the owner is linked to individuals involved in criminal organizations. Owners holding "unexplained assets" must prove that the value of their property is not manifestly disproportionate to their legitimate income or demonstrate that the property does not originate from illegal sources.
National courts, when assessing whether property is suspected of deriving from criminal activity, should consider all relevant circumstances of the case, including available evidence and specific facts—such as whether the value of the property significantly exceeds an individual's legitimate income. Additionally, the absence of a reasonable and lawful source for the property may serve as a consideration, since legitimately acquired assets typically have an explainable origin. Furthermore, associations with persons involved in criminal organizations may also carry significant weight. Such assessments must be conducted on a case-by-case basis according to the specific circumstances.
The Council has now reached a provisional agreement on the directive and will begin negotiations with the European Parliament to finalize the legal text. Once fully adopted by member states, EU countries will have three years to implement the directive into national law.
