EU Commission proposes rules on freezing and confiscating assets of oligarchs violating restrictions

• Published date: 26 May 2022
• Publication title: LETA

RIGA, May 26 (LETA) - The European Commission has proposed rules on freezing and confiscating assets of oligarchs violating restrictive measures and of criminals, LETA was told at the press office of the European Commission's Representation in Latvia.

The European Commission proposes to add the violation of EU restrictive measures to the list of EU crimes. The Commission is also proposing new reinforced rules on asset recovery and confiscation, which will also contribute to the implementation of EU restrictive measures.

While the Russian aggression on Ukraine is ongoing, it is paramount that EU restrictive measures are fully implemented and the violation of those measures must not be allowed to pay off. Today's proposals aim to ensure that the assets of individuals and entities that violate the restrictive measures can be effectively confiscated in the future. The proposals come in the context of the 'Freeze and Seize' Task Force, set up by the Commission in March.

The Commission is proposing to add the violation of restrictive measures to the list of EU crimes. This will allow to set a common basic standard on criminal offences and penalties across the EU. In turn, such common EU rules would make it easier to investigate, prosecute and punish violations of restrictive measures in all member states alike.

The violation of restrictive measures, meets the criteria set out in the Treaty on the Functioning of the European Union, as it is a crime in a majority of member states. It is also a particularly serious crime, since it may perpetuate threats to international peace and security, and has a clear cross-border context, which requires a uniform response at EU level and global level.

Once the EU Member States agree on the Commission's initiative to extend the list of EU crimes, the Commission will present a legislative proposal based on the accompanying Communication and Annex.

Secondly, the Commission is putting forward a proposal for a Directive on asset recovery and confiscation. The core objective is to ensure that crime does not pay by depriving criminals of their ill-gotten gains and limiting their capacity to commit further crimes. The proposed rules will also apply to the violation of restrictive measures, ensuring the effective tracing, freezing, management and confiscation of proceeds derived from the violation of restrictive measures.

The proposal modernises EU asset recovery rules, among others, by: Extending the mandate of Asset Recovery Offices to...