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EU Signs New Asset Recovery Treaty as Criminal Networks Retain Vast Majority of Illegal Profits
A new Council of Europe protocol is intended to strengthen cross-border investigations, confiscation and the recovery of criminal wealth. European authorities currently recover only a small proportion of the proceeds generated by organised and financial crime.
The European Union has signed an international agreement strengthening the recovery of criminal assets, as Brussels seeks to address the failure of national authorities to confiscate the overwhelming majority of wealth generated through organised crime, corruption and money laundering.
The agreement, opened for signature in Strasbourg on Wednesday, 14 October, introduces additional provisions governing the identification, freezing, confiscation and management of assets held across national borders.
It supplements the Council of Europe’s Warsaw Convention, which established an international framework for cooperation against money laundering and the financing of terrorism.
The Additional Protocol adopted by the Council of Europe extends existing asset-recovery mechanisms and strengthens the ability of national authorities to cooperate when criminal proceeds are transferred beyond the country where an offence occurred.
The financial foundations of organised crime
European authorities have long struggled to deprive criminal organisations of the profits generated by their activities.
An estimate frequently cited by European institutions suggests that only around one per cent of criminal proceeds are ultimately confiscated.
The figure highlights a persistent weakness in criminal enforcement. Police and prosecutors may identify offenders and secure convictions without recovering the money used to finance further criminal operations.
Organised crime networks can distribute their assets through bank accounts, companies, property holdings and intermediaries operating in different jurisdictions.
Investigators must establish the origin and ownership of those assets, obtain the necessary legal orders and secure cooperation from foreign authorities before funds or property can be transferred again.
The problem has become increasingly serious as criminal organisations operate across several countries while enforcement powers remain largely national.
In an earlier examination of Europe’s response to drug-trafficking networks, EU Today reported on the importance of confiscating criminal assets rather than concentrating exclusively on arrests and drug seizures.
The financial structures supporting trafficking organisations can survive the prosecution of individual members, allowing criminal enterprises to replace personnel and continue operations.
New powers for cross-border investigations
The protocol is intended to address practical obstacles encountered when authorities seek assistance from another country.
Its provisions cover international cooperation in asset recovery, the management of seized property and the execution of confiscation decisions.
They also address circumstances in which confiscation may be possible without a conventional criminal conviction, subject to the safeguards and legal requirements established by participating states.
Such arrangements can be particularly relevant when suspects have fled, proceedings cannot be completed or assets are held through structures designed to conceal their ownership.
The protocol also provides for improved cooperation between designated asset-recovery authorities.
These mechanisms are intended to reduce the delays that can arise when investigators must navigate different national procedures while attempting to secure property that may be rapidly moved or disposed of.
The Council of Europe’s treaty documentation explains that the protocol seeks to update the Warsaw Convention in accordance with developments in international anti-money laundering standards.
The revised framework has also been developed with reference to EU rules and the recommendations of the Financial Action Task Force.
Existing European legislation
The agreement builds on legislation already adopted within the European Union.
The 2024 Asset Recovery and Confiscation Directive established stronger provisions concerning the tracing, freezing, confiscation and management of assets associated with criminal activity.
That directive is intended to improve national asset-recovery systems and strengthen cooperation between authorities.
The EU has separately developed a new anti-money laundering framework, including the establishment of the Frankfurt-based Authority for Anti-Money Laundering and Countering the Financing of Terrorism.
The authority has responsibilities concerning the supervision of high-risk financial institutions and coordination between national bodies combating illicit financial activity.
The new Council of Europe protocol addresses a related but distinct problem: how authorities recover assets once suspected criminal proceeds have been identified, particularly when those assets are located in another jurisdiction.
An earlier EU Today report on criminal enforcement of sanctions violations illustrated the importance of asset confiscation in cases involving breaches of European restrictions.
Although sanctions enforcement and organised crime investigations operate under different legal arrangements, both can require authorities to identify property, obtain judicial orders and prevent assets from being moved beyond their reach.
Ratification and implementation
The protocol was adopted by the Council of Europe’s Committee of Ministers on 15 May 2026 and opened for signature on 14 October.
The European Union’s participation requires further legal procedures before the new provisions become binding.
The Commission had previously submitted proposals authorising the EU to sign the agreement, reflecting the division of responsibilities between the Union and its member states in criminal justice and financial regulation.
Individual governments must also determine how the international obligations interact with national procedures governing investigations, property rights and confiscation.
The effectiveness of the agreement will depend on the speed of its implementation and the resources available to investigators, prosecutors and financial intelligence authorities.
Criminal organisations can transfer funds internationally through transactions completed in minutes. Judicial cooperation and the enforcement of confiscation decisions frequently require considerably longer.
The protocol offers governments additional instruments for narrowing that gap, but cannot eliminate the administrative and legal obstacles without corresponding improvements in national enforcement.
For European authorities, the practical measure of success will be the amount of criminal wealth that can be identified and recovered.
The Strasbourg agreement provides a wider legal framework for that task at a time when the profits generated by organised crime continue to exceed the assets confiscated by enforcement agencies.
