Confiscate (Confiscation)
The term confiscation, which includes forfeiture where applicable, means the permanent deprivation of funds or other assets by order of a competent authority or a court. Confiscation or forfeiture takes place through a judicial or administrative procedure that transfers the ownership of specified funds or other assets to be transferred to the State. In this case, the person(s) or entity(ies) that held an interest in the specified funds or other assets at the time of the confiscation or forfeiture loses all rights, in principle, to the confiscated or forfeited funds or other assets. (Confiscation or forfeiture orders are usually linked to a criminal conviction or a court decision whereby the confiscated or forfeited property is determined to have been derived from or intended for use in a violation of the law.)
Confiscation is one of the central strategic tools acknowledged to be required for effective action against money laundering, and it is important that the criminal justice systems make provisions for an efficient and effective method of tracing, freezing and eventually confiscating the proceeds derived from criminal activity. Mutual Legal Assistance Treaties (MLATS) provide for confiscation of assets in one jurisdiction based upon prosecution elsewhere.
