Illicit enrichment in Germany: An evaluation of the reformed asset recovery regime's ability to confiscate proceeds of crime

Cornelia Körtl and Imad Chbib

International Review of Law and Economics, 2024, vol. 80, issue C

Abstract: This study examines the effectiveness of Germany's reformed asset recovery regime, which was implemented in 2017, in terms of its ability to confiscate proceeds of crime and whether it qualifies as illicit enrichment legislation. The research utilizes Dornbierer's (2021) definition of illicit enrichment to evaluate the reformed asset recovery law and analyses trends in asset recovery by reviewing data on assets seized and confiscated since 2017. Additionally, the study compares the reformed asset recovery regime to its predecessor to determine whether weaknesses that reduced the effectiveness of the previous framework to confiscate PoC have been addressed, while also evaluating the reformed regime for any potential weaknesses that may hinder its ability to confiscate proceeds of crime. The study concludes that while the reformed regime introduces some elements of illicit enrichment, it does not satisfy the criteria for illicit enrichment legislation. Nonetheless, the reformed regime is more effective in confiscating proceeds of crime, as evidenced by the high value of assets seized since the reform was implemented. Additionally, most of the weaknesses that existed in the previous system have been resolved. However, the research highlights the remaining challenges regarding the confiscation of proceeds implicated in ML, fraud, and corruption, as well as profits from non-criminal offenses. Future studies could explore whether the increased confiscation of assets leads to a decrease in profit-driven crime.

Keywords: Forensic accounting; Financial crime; Illicit enrichment legislations; Money laundering; Fraud (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:irlaec:v:80:y:2024:i:c:s0144818824000504

DOI: 10.1016/j.irle.2024.106230

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