Best Practices Paper Confiscation (Recommendations 4 and 38) and a Framework for Ongoing Work on Asset Recovery
A robust system of provisional measures and confiscation is an important part of an effective anti-money laundering and counter-terrorist financing regime. Confiscation prevents criminal property from being laundered or reinvested either to facilitate other forms of crime or to conceal illicit proceeds. In itself, this can significantly stifle organised criminal operations, break them or frustrate the movement of proceeds realised from crime. Reducing the rewards of crime, affects the balance of risk and reward, and the prospect of losing profits may deter some from crime. It may also allow the victim of the crime to be partially or fully compensated, even when the proceeds are moved around the world. This is particularly relevant in the case of asset recovery.
This best practices paper will assist countries in implementing of Recommendations 4 and 38, the necessary measures in their regime to strengthen legal frameworks, minimise structural obstacles and streamline processes and procedures for effective tracing and confiscation within their jurisdiction and in the international context.
The Best Practices paper was originally adopted in February 2010 and has proven to be a useful tool for practitioners. The FATF has updated the Best Practices Paper on Confiscation and Asset recovery to bring it in line with the revised FATF Recommendations.