Illegal Asset Confiscation

WHAT IS CONFISCATION OF ASSETS?

There are generally two types of confiscation models used internationally to recover the proceeds of crime: non-conviction based (NCB) asset confiscation and conviction based (criminal) confiscation. They share the same objective, namely the confiscation by the state of the proceeds and instrumentalities of crime. Criminal and NCB asset confiscation differ in the procedure used to confiscate assets. The main distinction between the two is that criminal confiscation requires a criminal trial and conviction, whereas NCB asset confiscation does not.

Confiscation of assets or property means the permanent deprivation of property by order of a court or other competent authority. The term is often used interchangeably with forfeiture.

Forfeiture takes place through a judicial or administrative procedure that transfers the ownership of specified funds or other assets to the State. The persons or entities that held an interest in the specified funds or other assets at the time of the confiscation or forfeiture lose all rights, in principle, to the confiscated or forfeited funds or other assets.

Confiscation may apply in principle to all crimes but in practice it is more frequently applied to serious cases involving organised crime and especially crimes generating huge income and liquidity, such as drug trafficking, money laundering and corruption.