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The EU approved the Directive on the confiscation of unverified wealth

The EU approved the Directive on the confiscation of unverified wealth

On 12 April, the EU Council adopted a Directive on the confiscation of unconfirmed wealth that may be linked to crime. This is how the EU fights proceeds of crime.

The Directive obliges all EU member states to introduce rules and develop a mechanism under which property can be confiscated if it cannot be confirmed by official income. Thus, if there is an indictment, the unexplained income of individuals must be confiscated or frozen.

Even if property is transferred to a third party (to avoid confiscation), such property can still be confiscated if the third party knew about the real purpose of the transfer.

In addition, asset management offices will be strengthened.

The Directive comes into force at the beginning of May, after which EU countries will have 30 months to implement its provisions and organize all processes.

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