Confiscation of Illicit Flows: Two Far-Reaching Models from Baltic States

• In Event: Recent Legislative and Policy Developments on Non-conviction-based confiscation in Europe

Abstract

Prosecution of money laundering – illicit flows and cash flows – fails to achieve significant results across Europe. The presentation will focus on two structurally different innovative models of criminal asset confiscation that have proven to be highly effective in targeting and confiscating illicit financial flows. The Latvian model provides for confiscation in parallel with prosecution for money laundering. The Lithuanian model provides for post-prosecution civil confiscation of abandoned property. Both models include civil rules of evidence, which play a crucial role in boosting confiscation efficiency. Lithuanian model has already been approved in the Lithuanian Supreme Court case law. Latvian model has been analysed and approved by the Advocate General of the European Court of Justice and it is under consideration of the Constitutional Court of Latvia. Both models will be compared with the new model of unexplained wealth confiscation proposed in the Art. 16 of the Directive 2024/1260 on assets confiscation that is based on the German model of extended independent confiscation (Art. 76a(4) StGB). The latter has no civil proceedings component. It has proven to be effective in targeting drug-related cash flows but its capacity to target multi-layered money laundering remains questionable.

Author

• Skirmantas Bikelis, LCSS Law Institute