#Justice4Moldova: Position Paper on the draft law on the use of confiscated property for social purposes or in the public interest (unique no. 897/MJ/2024)
AUTHOR: Petru Istrati and Pavel Cazacu, experts within the Justice Experts Group (JEG)
The Institute for European Policies and Reforms (IPRE) received the letter of the Ministry of Justice no. 03/9029 of 11.10.2024 by which the draft Law on the use of confiscated assets for social purposes or of public interest with the unique number 897/MJ/2024 was submitted for approval [hereinafter – “draft law”]. The reason for the issuance of the legislative act is the transposition of art. 18 para. (5) and Art. 19 of Directive (EU) 2024/1260 of the European Parliament and of the Council of 24 April 2024 on the recovery and confiscation of assets, CELEX: 32024L1260, published in the Official Journal of the European Union L series of 2 May 2024.
The authors of the draft pointed out that the draft law was developed in order to execute the actions of the National Program for the Recovery of Criminal Assets for 2023-2027, approved by Parliament Decision no. 342/2022.
IPRE supports the idea of the efficient use of confiscated assets for social and public interest purposes and therefore considers the adoption of the draft law important. In particular, this project is part of a series of steps to align national legislation with the requirements of Directive (EU) 2024/1260, in strengthening the rule of law and the fight against organised crime. Even if the purpose of the project is a precise and well-defined one, we believe that some aspects require in-depth analysis and detailing. In particular, it is necessary to:
- clarifying the concepts used, in order to avoid a diffuse margin of appreciation of the legal text;
- the establishment of clearer mechanisms for the valuation and allocation of assets;
- compliance with the standards of legislative technique;
- putting in place safeguards to ensure transparency of procedures and respect for fundamental rights.
Given that the social use of confiscated assets is an organised crime response mechanism that receives particular attention at international level, taking up good practices and experiences from other countries might be useful. However, the implementation of Directive (EU) 2024/1260, which is quite recent, at national level in the EU Member States is at an early stage. The authors of the draft indicated in the Justification Note that, at the level of 2020, in 19 EU Member States there was specific legislation on the use of goods in the public interest or for social purposes. However, emerging from recent legal metamorphoses, identifying well- established legal regimes that provide established examples that could be adjusted and replicated in the Republic of Moldova is a challenge with a high degree of difficulty.
A possible solution that has been exposed in some national analytical studies with a comparative component is the financing of pilot programs for the social use of confiscated assets, a model implemented in Albania, whereby more confiscated real estate is rehabilitated and rearranged for social economy activities or non-profit activities.
More details on the GEJ recommendations are available here.
This position paper was prepared within the project “Ensuring the Integrity, Efficiency, and Independence of the Justice System in Moldova – #Justice4Moldova,” implemented by the Institute for European Policies and Reforms (IPRE) in partnership with the Institute for War and Peace Reporting (IWPR), funded by the European Union and co-financed by the Soros Foundation Moldova. The content of this study is the sole responsibility of the author and cannot, under any circumstances, be considered as representing the official position of the European Union, or the Soros Foundation Moldova.
