House committee examines EU asset recovery directive to combat organised crime

Nicosia, Cyprus. Members of the House legal affairs committee on Wednesday discussed a European Union directive setting minimum rules for tracing, identifying, freezing, confiscating and managing illicit assets across the bloc. They stressed its importance in combating organised crime.

Asset recovery and confiscation powers

Committee chairwoman and Disy MP Fotini Tsiridou described the directive after the session as “one of the most important tools a state can have at its disposal to combat organised crime”.

She said it provides for a competent asset recovery agency, cross-border cooperation with other member states and European bodies, and expanded forms of asset confiscation, including extended-term confiscation and confiscation without conviction in the context of a criminal organisation.

“Even without a conviction, a person’s property, such as unexplained wealth linked to criminal behaviour committed within a criminal organisation, can be confiscated,” she said.

Tsiridou said the directive also provides mechanisms for effectively managing frozen and confiscated assets and establishes an asset management service, including the possibility of selling frozen assets.

“The bill strengthens procedural safeguards and the rights of affected persons,” she added.

Deadline for national legislation

The European Parliament and the Council of the EU adopted the directive in 2024. The Republic of Cyprus and all other member states are treaty-bound to transpose it into domestic legislation before November 23 this year.

Cypriot members’ participation in the EU vote

Only one of the six Cypriot members voted when the directive passed in the European Parliament.

Independent Demetris Papadakis, who was elected in 2019 on Edek’s ticket, voted in favour. Disy’s Loucas Fourlas and Eleni Stavrou, Akel’s Giorgos Georgiou and Niyazi Kizilyurek, and Diko’s Costas Mavrides were not present.

The European Parliament said at the time that “the confiscation of criminals’ illicit profits is considered an effective tool in the fight against organised crime, identified as a major threat to EU security”.