You are here

Illegal proceeds to be confiscated

20/11/2015 13:51
A bill on the harmonization of Cyprus with the EU Directive on the prevention and combating of money laundering was submitted yesterday to the parliament.

According to the accompanying report, the main purpose of the bill is to harmonize legislation with the provisions of the relevant directive of the European Parliament and the EU Council, on the freezing and confiscation of instruments and proceeds of crime in the European Union.

The adoption of the Directive was one of the priorities of the Cyprus Presidency of the EU Council.

The Directive establishes minimum standards to be adopted by the Member States as regards freezing illegal proceeds in view of possible future confiscation and confiscation of assets at the end of a criminal trial, for a better cross-border cooperation between EU Member States, given that the freezing and confiscation of proceeds of crime are highly effective methods of combating organized crime.

The Directive includes provisions for confiscation of proceeds of crime or assets when their value is equivalent to those, as well as for confiscation in cases of illness or escape of the accused where the criminal proceedings could have resulted in a conviction if the defendant was able to attend the trial.

It also includes provisions for confiscation of proceeds of crime or other assets that were transferred by the defendant to third parties as well as provisions for asset freezing in view of future confiscation.

Safeguards and provisions for the management of assets are also set.

The bill introduces, inter alia, an amendment of Article 55 of the basic law concerning powers of the Unit for Combating Money Laundering (MOKAS), as a financial intelligence unit, to comply with international conventions, with the recommendations of the «Financial Action Task Force (FATF) " organization and the recommendations of the international organization of « Egmont Group» units.

It also includes necessary amendments and clarifications regarding the preventive measures taken in the financial system, which relate to the supervisory authorities of the financial sector.