Asset recovery in the European Union: implementing a “no safe haven” strategy for illicit proceeds

DOIhttps://doi.org/10.1108/JMLC-11-2020-0131
Published date08 February 2021
Date08 February 2021
Pages109-117
AuthorGeorge Pavlidis
Asset recovery in the European
Union: implementing a no safe
havenstrategy for illicit proceeds
George Pavlidis
Faculty of Law, Neapolis University, Paphos, Cyprus
Abstract
Purpose This paper aims to explore existingand proposed methods for enhancing asset recovery and
targeting the proceeds of illicit trades and other types of criminal activity in the European Union (EU).
Consistent and comprehensive implementation is needed at several levels (preventive measures, f‌inancial
investigations,criminal proceedings and asset freezing and conf‌iscation)tocreate a Europeanno safe haven
strategyfor dealing with illicit proceeds.
Design/methodology/approach This paper draws on primary sources of law, legal scholarship,
reports and open-source data to explore the existingand proposed methods for enhancing asset recovery in
the EU.
Findings The EU should expand and accelerateharmonization initiatives that target illicit proceeds in
cross-bordercases by using the building blocks of asset recovery (preventivemeasures, criminal proceedings,
f‌inancialinvestigations and asset freezing and conf‌iscation) in a consistentand complementary manner.
Originality/value This comprehensive study examines the existing assetrecovery tools and explores
new methodsfor enhancing the associated EU legal framework.
Keywords European union, Money laundering, Financial investigations, Asset freezing,
Asset conf‌iscation, International cooperation
Paper type Research paper
1. Targeting the proceeds of illicit trade and other types of criminal activity in
the European Union
The proceeds of illicit trades are not only the f‌inancial lifeline of organized crime, but they
also inf‌lict further burdens on societies. They supportadditional forms of criminal activity,
contaminate the legal economy and strain government institutions, especially law
enforcement. In addition, they harm individuals, families and local communities [European
Monitoring Centre for Drugs and Drug Addiction (EMCDDA) and Europol, 2016;Brochu,
2018]. According to United Nations Off‌ice on Drugs and Crime (UNODC)estimates, annual
illicit proceeds range between US$800bnand US$2tn globally. However, quantif‌ication has
been diff‌icult becauseof the opacity of criminal activity (UNODC, 2020;Reuter and Truman,
2004;Walker, 1999).
In the European Union (EU), approximately e110bn in criminalprof‌its is generated each
year (Europol, 2016; European Commission, 2016). Drug traff‌icking alone has an estimated
retail value of at least e30bn per year. It constitutes a major source of income for the
criminals and organized crime groups that operate in the region [European Monitoring
With the support of the Erasmus+ Programme of the European Union. This publication ref‌lects only
the authors view and the Education, Audiovisual and Culture Executive Agency (EACEA) and the
European Commission are not responsible for any use that may be made of the information.
Asset recovery
in the
European
Union
109
Journalof Money Laundering
Control
Vol.25 No. 1, 2022
pp. 109-117
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-11-2020-0131
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm

Get this document and AI-powered insights with a free trial of vLex and Vincent AI

Get Started for Free

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex