In 2018, the European Parliament and the European Council adopted a regulation on the mutual recognition of freezing orders and confiscation orders, the Regulation (EU) 2018/1805 of November 14, 2018. The Regulation aims at making the freezing and confiscation of assets deriving from criminal activities across the EU quicker and simpler.
This Regulation replaces the provisions of Framework Decision 2003/577/JHA on the execution in the European Union of freezing orders of assets, or evidence gathering, and the provisions of Framework Decision 2006/783/JHA on the application of the principle of mutual recognition of confiscation orders (that continues, however, to apply to Denmark and Ireland, which are not bound by this Regulation).
The execution of asset freezing orders, confiscation decisions, and related legal procedures are issues of particular interest in Luxembourg, which is taking significant steps to strengthen its legal framework regarding those topics. Indeed, on March 13, 2023, the Minister of Justice, Sam Tanson, submitted to the Chamber of Deputies (Chambre des Députés) a proposed legislation transposing the aforementioned Regulation while introducing modifications to the Code of Criminal Procedure, the New Code of Civil Procedure, and the law on the management and recovery of seized or confiscated assets. This proposed legislation, known as Bill PL8174 (the “Bill”), was voted a first time by the Chamber on June 15, 2023, following a vote in which almost all those present approved the Bill.
More specifically, on the one hand, the Bill addresses the execution of freezing orders and the gathering of evidence within the European Union, as regulated by the Council Framework Decision 2003/577/JAI. By implementing this decision into national law, Luxembourg seeks to enhance its capacity to freeze in an effective way assets, or gathering of evidence, in cross-border situations, promoting cooperation among EU member States in combating criminal activities. On the other hand, the Bill addresses the application of the principle of mutual recognition to confiscation decisions within the European Union, as regulated by Council Framework Decision 2006/783/JAI. Luxembourg’s adoption of this decision will enable the country to cooperate in a better way with other member States in recognizing and enforcing confiscation orders, thereby depriving criminals of their ill-gotten gains across borders.
In this context, the Bill plans in the first place to introduce modifications to the Code of Criminal Procedure, including provisions related to the execution of asset freezing orders, the handling of evidence, and the coordination of efforts between authorities in different jurisdictions. The amendments aim to facilitate cooperation in criminal investigations and prosecutions, promoting a robust response to transnational crime.
Secondly, it provides for the introduction of modifications to Luxembourg’s New Code of Civil Procedure related to the recognition and enforcement of confiscation decisions, ensuring their effective implementation across borders.
Finally, the Bill includes amendments to the law on the management and recovery of seized or confiscated assets of 2022, that focus on strengthening transparency, accountability, and efficiency in the handling and disposal of such assets. The idea is to ensure that they are put to legitimate use, or returned to their rightful owners whenever possible.
At this time, in order to obtain the entry into force of the Bill, the Chamber of Deputies is awaiting waiver from the second constitutional vote by the Council of State (Conseil d’Etat), before obtaining the signature of the Grand Duke and the competent Minister and, finally, publication in the Official Journal of the Grand Duchy of Luxembourg.
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