Countries Call for More Powers in the Fight Against Financial Crime

Saxony has once again advocated in the Bundesrat for more effective measures to combat financial crime. The Bundesrat adopted resolutions proposed by the state calling for it to become easier to confiscate assets acquired illegally by organized crime. This means the Bundestag is now being called upon to expand the “Customs and Financial Justice Act” to include this aspect. The resolution is advisory in nature; the Bundestag is not required to approve it. 

“Under the federal government’s current draft bill, organized crime can still conceal the origin of assets, even though objective evidence suggests they were not acquired legally,” said Saxony’s Finance Minister Christian Piwarz (CDU), explaining the rationale behind the initiative.

Two Basic Requirements for Seizing Assets from Criminals

According to the states’ proposal, two basic requirements should suffice in the future to seize assets from criminals: There must be a gross disparity between assets and income, and a link to criminal structures, the Ministry of Finance announced.

States should be able to conduct proceedings independently

The Bundesrat also approved a second motion from Saxony. This calls on the federal government to allow not only customs authorities but also the federal states, through their tax authorities, to conduct independent proceedings to investigate, secure, and confiscate suspicious assets. “This should not be possible solely for customs. The states should have the same powers and authority to intervene as customs,” argued Piwarz.

Saxony also calls for a reversal of the burden of proof regarding the identification of assets

To cut off the sources of funding for organized crime, Saxony passed a resolution in January of this year calling for a more effective fight against financial crime and, in doing so, demanded the use of the reversal of the burden of proof. According to this proposal, it should not be up to the state to prove that the assets were obtained criminally; rather, the accused should be required to document the lawful acquisition of their assets.