Depriving the perpetrator of the proceeds of a crime has long been a fundamental instrument in combating economic and organized crime. Conviction alone may prove insufficient if the assets obtained through the crime remain at the perpetrator's disposal, are hidden, or transferred to third parties.
The European Union's response to this problem is Directive (EU) 2024/1260 of the European Parliament and of the Council of 24 April 2024 on asset recovery and confiscation. Member States are required to implement its solutions by 23 November 2026.
The directive strengthens the system for tracking, freezing, and confiscating assets related to criminal activity. Its scope extends beyond the perpetrator's situation. In practice, the new instruments may also apply to their family members, associates, companies, contractors, and other third parties to whom certain assets have been transferred.
Securing assets faster
One of the basic assumptions of the directive is to enable a quick reaction of the authorities even before the final conclusion of the proceedings.
Member States must ensure that assets can be immediately secured if they are at risk of being disposed of, hidden, or removed. This is particularly important for cash, financial instruments, and crypto-assets.
The Polish Code of Criminal Procedure also already provides for extensive mechanisms for securing assets, including securing future forfeiture and the possibility of establishing compulsory administration of a company. However, implementing the directive will require adapting national regulations to new EU standards.
Extended confiscation
The directive also strengthens the mechanism of so-called extended confiscation.
The court will be able to order the confiscation of all or part of the property of a person convicted of an offence that may bring financial benefits if the circumstances of the case indicate that the property originates from criminal activity.
Among other things, a glaring disproportion between the value of the assets and the perpetrator's legal income may be significant .
Similar solutions already exist in Polish criminal law. However, the direction adopted in the directive demonstrates that in criminal proceedings, not only the answer to the question of what benefit was obtained from a specific act will become increasingly important, but also an analysis of the legal source of all assets.
Assets transferred to third parties
The possibility of confiscating property transferred to other persons is of significant practical importance.
Merely transferring real estate, shares, cash or other assets to a family member, partner or company will not automatically protect the assets from confiscation.
Confiscation against a third party will be possible if that person knew or should have known that the transfer was intended to avoid confiscation.
The following factors may be important in the assessment:
- free transfer of an asset,
- selling at a price significantly below the market price,
- close relationships between the parties to the transaction,
- the perpetrator retains actual control over the property.
At the same time, the directive provides for the protection of the rights of third parties acting in good faith.
Confiscation without a conviction
One of the most important solutions is the possibility of confiscation even when criminal proceedings cannot end with a conviction.
This applies, among other things, to situations in which the accused has died, escaped, become seriously ill or – in certain cases – the statute of limitations has expired.
However, the condition is that the court determines that the property in question comes directly or indirectly from criminal activity.
This solution is intended to prevent situations in which the impossibility of continuing proceedings against a specific person would automatically lead to the assets derived from crime being left in circulation.
Property of unknown origin
A particularly far-reaching solution is provided for in Article 16 of the Directive.
In certain cases concerning the activities of criminal organisations, it will be possible to confiscate assets even if their connection with a specific, individually defined crime cannot be proven.
The court will be able to take into account, among other things:
- a significant disproportion between the value of assets and legal income,
- lack of a reliable legal source of its origin,
- the owner's connections with persons associated with a criminal organization.
In practice, this solution may be particularly important in cases involving economic crime, where funds are repeatedly transferred, mixed with legal assets or invested in assets formally belonging to other people.
What does this mean for entrepreneurs?
Directive 2024/1260 is important not only for perpetrators of crimes, but also for entrepreneurs in economic relations with them.
The ability to demonstrate:
- legal source of financing,
- the market nature of the transaction,
- the actual economic purpose of the transfers,
- correct identification of the beneficial owner,
- conducting proper due diligence of the contractor.
In the case of transactions between related entities, it will be particularly important to maintain full documentation confirming the economic justification of the operation and the method of determining the price.
In this context, the compliance system no longer serves a purely preventive function. It can also become a significant evidentiary tool, demonstrating the legality of assets and the good faith of the entrepreneur.
Summary
Directive 2024/1260 strengthens the European system for recovering criminal assets. The new regulations cover not only assets directly belonging to the perpetrator, but also assets transferred to third parties, assets of unknown origin, and cases where proceedings do not result in a conviction.
For entrepreneurs, this means, above all, an increased importance of transparency of financial flows, proper documentation of transactions and effective compliance procedures.
After November 23, 2026, the question of law enforcement authorities may increasingly concern not only whether a crime has been committed, but also where the assets come from and who actually controls them.
This article is for informational purposes only and does not constitute legal advice
Legal status as of September 29, 2026
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