Extended Confiscation in Criminal Law: National, European and International Perspectives

This book provides a comprehensive analysis of the measure of extended confiscation as an instrument of criminal policy. National and international regimes on confiscation are viewed from a multi-faceted perspective, and the main focus is the framework of the European Union. The book begins by examining extended confiscation from the national perspective, presenting the substantive criteria for this power of confiscation. It focuses on three main jurisdictions - England and Wales, Germany and Sweden - and explores how domestic legislation is drafted and applied in their differing models. A key point of the analysis focuses on Directive 2014/42/EU on the Freezing and Confiscation of Instrumentalities and Proceeds of Crime in the European Union, which aims at harmonising the national powers of confiscation. This book explores whether such measures really lead to more efficiency, or if other reforms may be more effective. An overriding issue is whether increased powers of extended confiscation strike the right balance between the interest of law enforcement and the protection of human rights. The second part of the book deals with the international perspective. The notion of extended confiscation is set in the broader context of transnational cooperation regarding the confiscation of assets. It examines the requirements and the handling of such cases on the basis of the many instruments on judicial assistance or mutual recognition of judicial decisions from the United Nations, the Council of Europe and the EU. It also explores how the current legal framework for international cooperation in confiscation matters functions. The practice of cross-border tracing and seizure of illegal assets and cooperation regarding the recognition and execution on final confiscation orders is looked at. This book enhances the reader's understanding of the strategy of confiscating criminal assets and contributes to a deeper knowledge of the recent developments regarding extended confiscation. It gives some answers to the questions of how the confiscation regimes could be improved, and which changes are proportionate to the objectives pursued.

Preface - v Table of Cases - xiii List of Abbreviations - xix PART I. INTRODUCTION Chapter 1. Background and Scope of the Study - 3 1.1. Go for the Money!: The Development and Expansion of a New Law Enforcement Strategy - 3 1.2. International and National Legislative Action - 6 1.3. On the Subject Matter - 9 1.3.1. The Overriding Purpose of the Study - 9 1.3.2. The Different Stages of Confiscation - 10 1.3.3. A Note on Terminology - 12 1.4. The Perspectives of the Study and Delimitations - 15 1.4.1. National and International Perspectives - 15 1.4.2. Delimitations - 16 1.5. An Outline of the Different Parts and Chapters - 17 PART II. SUBSTANTIVE PROVISIONS ON EXTENDED CONFISCATION Chapter 2. Legislative Action by the EU - 25 2.1. FD 2005/212/JHA - 25 2.1.1. Introduction - 25 2.1.2. Extended Confiscation - 26 2.1.3. Third Party Confiscation and Rules on Procedural Rights - 28 2.2. Reviews of the European Confiscation Powers - 29 2.3. Directive 2014/42/EU - 33 2.3.1. The General Framework of the Directive - 33 2.3.2. The Provision on Ordinary Confiscation - 35 2.3.3. The Provision on Extended Confiscation - 37 2.3.4. Third Party Confiscation - 39 2.3.5. Procedural Safeguards - 39 Chapter 3. Legislation in England and Wales - 43 3.1. The Development of the Legislation on Extended Confiscation in England and Wales - 43 3.2. Overview of POCA 2002 - 45 3.3. Confiscation Orders Pursuant to Part 2 of POCA 2002 - 49 3.3.1. Introduction - 49 3.3.2. A Twin Track Confiscation System - 51 3.4. Criminal Lifestyle Confiscation - 53 3.4.1. Basic Requirements - 53 3.4.2. The Determination of Benefit in Criminal Lifestyle Cases - 54 3.4.2.1. The Statutory Assumptions - 54 3.4.2.2. The Burden and Standard of Proof - 57 3.4.2.3. Benefit and the Available Amount - 58 3.5. Some Special Features of the English Confiscation Procedure - 65 3.6. A Commentary on the English Confiscation Regime on Lifestyle Confiscation - 67 3.6.1. A Draconian but Efficient Confiscation Regime? - 67 3.6.2. The Classification of Defendants as Lifestyle Offenders - 70 3.6.3. The Assessment of Benefit on the Basis of the `Criminal Lifestyle' Assumptions - 71 3.6.4. Lack of Judicial Discretion - 74 3.6.5. The Burden of Proof on a Defendant - 76 3.6.6. Confiscation Orders and the ECHR - 78 3.6.6.1. Case-law from the ECtHR - 78 3.6.6.2. Confiscation Orders and the Human Rights Act 1998 - 85 3.6.6.3. Remarks on the Compatibility of the Regime with the ECHR - 86 3.6.7. Difficulties Regarding the Enforcement of Confiscation Orders - 87 Chapter 4. Legislation in Germany - 91 4.1. The Development of the Measure of Extended Confiscation in German Law - 91 4.2. Generally on the Confiscation Regime - 97 4.3. Extended Confiscation in German Law - 99 4.3.1. Basic Substantive Rules and the Procedural Framework - 99 4.3.2. The Triggering Offences and the Scope for Extended Confiscation - 102 4.3.3. The Evidentiary Standard for Extended Confiscation - 104 4.3.3.1. Legal Provision and the Legislative Works - 104 4.3.3.2. Decision by the Bundesgerichtshof in 1994 - 106 4.3.3.3. Decision by the Bundesverfassungsgericht in 2004 - 108 4.3.3.4. The Application of the Evidentiary Standard in Case-law - 110 4.4. A Commentary on the German Regime of Extended Confiscation - 113 4.4.1. A Complex and Partly Controversial Asset Recovery Regime - 113 4.4.2. The Interpretation and Application of the Evidentiary Standard - 114 4.4.3. The Present Scope of the Legislation - 117 4.4.4. The Proposal for a New German Provision on Extended Confiscation - 118 4.4.5. The Proposal for a New Form of Non-Conviction-Based Confiscation - 122 4.4.6. The Practice of Administrative "Praventive Gewinnabschoepfung" - 126 Chapter 5. Legislation in Sweden - 129 5.1. The Development of the Measure of Extended Confiscation in Swedish Law - 129 5.2. Generally on the Regime for Confiscation in Sweden - 131 5.3. The Provision on Extended Confiscation in Swedish Law - 134 5.3.1. Basic Substantive Rules and the Procedural Framework - 134 5.3.2. The Triggering Offences and the Scope for Extended Confiscation - 137 5.3.3. Special Criteria for Extended Confiscation - 138 5.3.4. The Burden and Standard of Proof - 140 5.3.5. Third Party Confiscation - 144 5.4. Swedish Case-Law on Extended Confiscation -145 5.4.1. Introduction - 145 5.4.2. Assets Found under "Suspicious" Circumstances - 147 5.4.3. The Financial Situation of the Defendant - 150 5.4.4. NJA 2010 p. 374 - 154 5.5. An Analysis of the Swedish Confiscation Regime - 157 5.5.1. The Issue of Confiscation of Relatively Low Amounts of Cash - 157 5.5.2. The Scope of Confiscation and the Triggering Offences - 162 5.5.3. The Swedish Hardship Rule - 170 5.5.4. A Lowered Standard or a Reversed Burden of Proof? - 171 5.5.5. The Procedural Framework for a Motion on Extended Confiscation - 173 5.5.6. The Efficiency of the Regulation - 175 Chapter 6. Brief Overview of the Legislation in Norway, Denmark and Finland - 179 6.1. Norway - 179 6.1.1. The Provision on Extended Confiscation - 179 6.1.2. The Burden of Proof - 181 6.1.3. The Procedural Framework - 182 6.2. Denmark - 183 6.2.1. The Provision on Extended Confiscation - 183 6.2.2. The Burden of Proof - 184 6.2.3. Danish Legislation and Directive 2014/42/EU - 184 6.3. Finland - 185 6.3.1. The Provision on Extended Confiscation - 185 6.3.2. The Burden of Proof - 187 Chapter 7. Directive 2014/42/EU: A Reform with Significant Legal Changes? - 189 7.1. The Necessity of a New EU Instrument on Confiscation - 189 7.2. The Challenges to a More Harmonised EU Regime - 193 7.3. Triggering Offences and the Scope of Directive 2014/42/EU - 197 7.4. The Establishment of Illegal Origin - 202 7.4.1. Some Special Supportive Legislative Criteria - 202 7.4.2. The Evidentiary Standard and Burden of Proof - 204 7.5. Exceptions to Extended Confiscation - 210 7.6. The Absence of a Hardship Clause - 212 7.7. Procedural Safeguards for the Individual - 214 7.8. The Relationship Between Confiscation and Compensation for Victims - 216 7.9. Third Party Confiscation - 217 7.10. Concluding Remarks: What Has Been Achieved and What Still Needs to be Done? - 218 PART III. THE LEGAL FRAMEWORK FOR INTERNATIONAL COOPERATION Chapter 8. International Cooperation in the Area of Confiscation - 225 8.1. Introduction - 225 8.2. International Instruments on MLA - 226 8.3. EU Instruments on Mutual Recognition - 228 8.4. The Directive on EIO - 230 8.5. An Outline of the Following Chapters - 233 Chapter 9. Cross-Border Asset Tracing and Exchange of Information - 237 9.1. The Legal Framework - 237 9.1.1. Requests within the Framework of International Police Cooperation - 237 9.1.2. Requests within the Framework of International Cooperation between Judicial Authorities - 241 9.1.3. The FD on Asset Recovery Offices - 248 9.2. Commentaries to the Regime of International Cooperation Regarding the Tracing of Assets - 250 9.2.1. The Scope and Practical Application of the Legal Framework - 250 9.2.2. The Setting up of Efficient AROs - 256 9.2.3. The German Asset Recovery Offices - 260 Chapter 10. International Cooperation in Order to Seize or Freeze Assets - 263 10.1. The Legal Framework - 263 10.1.1. Requests for MLA - 263 10.1.2. Orders for Seizure or Freezing Based on Mutual Recognition - 265 10.1.2.1. The FD on Freezing Orders - 265 10.1.2.2. The Directive on EIO - 268 10.2. A Commentary to the EU Regime on Cross-Border Seizure of Assets - 269 10.2.1. The FD on Freezing Orders: A Lack of Application in Legal Practice - 269 10.2.2. An Abolition of Double Criminality: The Example of Sweden - 274 10.2.3. The Need for Urgent Measures: Is the Present Legal Framework Sufficient? - 276 Chapter 11. International Cooperation in Order to Execute Final Confiscation Orders - 281 11.1. The Legal Framework - 281 11.1.1. Requests for MLA - 281 11.1.2. The FD on Confiscation Orders - 282 11.1.2.1. General Provisions - 282 11.1.2.2. Mutual Recognition of Orders on Extended Confiscation - 286 11.2. A Commentary on the EU Regime on Cross-Border Execution of Final Confiscation Orders - 287 11.2.1. Generally on the Legal Construction of the FD on Confiscation Orders - 287 11.2.2. The Execution of Final Orders Based on the Powers of Extended Confiscation - 288 11.2.2.1. Mutual Recognition and the FD on Confiscation Orders - 288 11.2.2.2. The Example of Sweden: Execution of Foreign Orders Regarding Extended Confiscation - 292 11.2.3. Special Difficulties for the UK: Recognition and Execution of NCB Confiscation Orders - 296 Chapter 12. The Proposal for a Regulation on Mutual Recognition - 303 12.1. The Background to the Proposal - 303 12.2. The Motives for EU Action - 304 12.3. The Legal Basis, Choice of Instrument and General Structure - 305 12.4. The Scope of Application - 307 12.5. Grounds for Non-Recognition and Non-Execution - 311 12.6. Time Limits for Recognition and Execution of Orders - 312 12.7. General Provisions on Procedure - 313 12.8. Some Special Provisions Regarding Freezing Orders - 314 12.9. The Priority of the Rights of Victims - 316 12.10. Mutual Recognition and the Respect for Fundamental Rights - 317 Chapter 13. Final Remarks: "To Go for the Money" - But How? - 323 Bibliography - 329 Index - 351 About the Author - 353