Chasing Justice: Asset Recovery in Legal Theory and Practice and Serbia`s Path to EU Compliance

Abstract

Countries lose billions of euros annually due to corruption, economic crime, and illicit financial activities. Europol estimates that between 0.7% and 1.28% of the EU`s GDP is linked to suspicious financial transactions, with only 2% of criminal proceeds frozen and 1% confiscated. These figures highlighted the urgent need for robust asset recovery mechanisms to combat crime and uphold justice. Rooted in the principle that “crime should not pay”, asset recovery ensures that no one retains gains acquired through unlawful acts, addressing economic, social, and moral harms caused by such activities. This article examines the key phases of asset recovery: tracing illicit proceeds, implementing legal mechanisms for freezing and confiscation, and managing confiscated assets. The tracing phase highlights challenges in financial investigations, particularly for crime like corruption, where secrecy and collusion hinder evidence collection. Legal mechanisms are analyzed, emphasizing the need for extended, non-conviction based, and third-party confiscation to align Serbian law with EU acquis. Proper management of confiscated assets is essential to prevent depreciation and ensure their use for victim restitution or public benefit. The article underscores the importance of balancing effective crime deterrence with human rights safeguards. It also examines international standards, with the special focus on EU Directives, and their application to Serbia`s legal framework. By addressing the challenges of translational and evolving crime, the article advocates for adaptive legal frameworks and best practices to strengthen the global fight against financial crime and ensure justice.