12697/18 PT/ev 1 GIP.2 I. INTRODUCTION In accordance with the provisions of Article 294 of the

167 Pages·2017·0.89 MB·English

Council of the

European Union
Brussels, 9 October 2018
(OR. en)

12697/18

Interinstitutional File:

2016/0412(COD)

CODEC 1580
JAI 949
COPEN 331
DROIPEN 147
IA 295
PE 122

INFORMATION NOTE
From: General Secretariat of the Council
To: Permanent Representatives Committee/Council
Subject: Proposal for a Regulation of the European Parliament and of the Council
on the mutual recognition of freezing and confiscation orders
- Outcome of the European Parliament's first reading,
(Strasbourg, 1 to 4 October 2018)

I. INTRODUCTION
In accordance with the provisions of Article 294 of the TFEU and the joint declaration on practical
arrangements for the codecision procedure 1, a number of informal contacts have taken place
between the Council, the European Parliament and the Commission with a view to reaching an
agreement on this dossier at first reading, thereby avoiding the need for second reading and
conciliation.

1 OJ C 145, 30.6.2007, p.5

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In this context, the rapporteur, Nathalie GRIESBECK (ALDE, FR), presented a compromise
amendment (amendment number 145) to the proposal for a Regulation on behalf of the Committee
on Civil Liberties, Justice and Home Affairs. This amendment had been agreed during the informal
contacts referred to above.
In addition, the EFDD political group tabled an amendment (amendment number 146).
II. VOTE
When it voted on 4 October 2018, the plenary adopted the compromise amendment (amendment
number 145) to the proposal for a Regulation. No other amendments were adopted. The
Commission's proposal as thus amended constitutes the Parliament's first-reading position which is
contained in its legislative resolution as set out in the Annex hereto2.
The Parliament's position reflects what had been previously agreed between the institutions. The
Council should therefore be in a position to approve the Parliament's position.
The act would then be adopted in the wording which corresponds to the Parliament's position.

2 The version of the Parliament's position in the legislative resolution has been marked up to
indicate the changes made by the amendments to the Commission's proposal. Additions to the
Commission's text are highlighted in bold and italics. The symbol " ▌" indicates deleted text.

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ANNEX
4.10.2018
European Parliament legislative resolution of 4 October 2018 on the proposal for a regulation
of the European Parliament and of the Council on the mutual recognition of freezing and
confiscation orders (COM(2016)0819 – C8-0002/2017 – 2016/0412(COD))

(Ordinary legislative procedure: first reading)
The European Parliament,
– having regard to the Commission proposal to Parliament and the Council (COM(2016)0819),
– having regard to Article 294(2) and Article 82(1), second subparagraph, point (a) of the
Treaty on the Functioning of the European Union, pursuant to which the Commission
submitted the proposal to Parliament (C8-0002/2017),
– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
– having regard to the reasoned opinion submitted, within the framework of Protocol No 2 on
the application of the principles of subsidiarity and proportionality, by the Czech Senate,
asserting that the draft legislative act does not comply with the principle of subsidiarity,
– having regard to the provisional agreement approved by the committee responsible under
Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative
by letter of 20 June 2018 to approve Parliament’s position, in accordance with Article 294(4)
of the Treaty on the Functioning of the European Union,
– having regard to Rule 59 of its Rules of Procedure,
– having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs and
the opinions of the Committee on Economic and Monetary Affairs and the Committee on
Legal Affairs (A8-0001/2018),
1. Adopts its position at first reading hereinafter set out;
2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially
amends or intends to substantially amend its proposal;
3. Instructs its President to forward its position to the Council, the Commission and the national
parliaments.

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P8_TC1-COD(2016)0412
Position of the European Parliament adopted at first reading on 4 October 2018 with a view
to the adoption of Regulation (EU) 2018/… of the European Parliament and of the Council on
the mutual recognition of freezing orders and confiscation orders
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 82
(1)(a) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Acting in accordance with the ordinary legislative procedure3,

3 Position of the European Parliament of 4 October 2018.

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Whereas:
(1) The Union has set itself the objective of maintaining and developing an area of freedom,
security and justice.
(2) Judicial cooperation in criminal matters in the Union is based on the principle of mutual
recognition of judgments and judicial decisions, which has commonly been referred to as
the cornerstone of judicial cooperation in criminal matters within the Union since the
Tampere European Council of 15 and 16 October 1999.
(3) The freezing and the confiscation of instrumentalities and proceeds of crime are among the
most effective means of combatting crime. The ▌Union is committed to ensuring more
effective identification, confiscation and re-use of criminal assets in accordance with "The
Stockholm programme – An open and secure Europe serving and protecting the
citizens"4.

4 OJ C 115, 4.5.2010, p.1.

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(4) As crime is often transnational in nature, effective cross-border cooperation is essential in
order to freeze and confiscate the instrumentalities and proceeds of crime.
(5) The current Union legal framework in relation to the mutual recognition of freezing orders
and confiscation orders is composed of Council Framework Decisions 2003/577/JHA ▌5
and 2006/783/JHA6.
(6) The Commission's implementation reports on Framework Decisions 2003/577/JHA and
2006/783/JHA show that the existing regime for the mutual recognition of freezing orders
and confiscation orders is not fully effective. Those Framework Decisions have not been
implemented and applied uniformly in the Member States, which has led to insufficient
mutual recognition and sub-optimal cross-border cooperation.

5 Council Framework Decision 2003/577/JHA of 22 July 2003 on the execution in the
European Union of orders freezing property or evidence (OJ L 196, 2.8.2003, p. 45).
6 Council Framework Decision 2006/783/JHA of 6 October 2006 on the application of the
principle of mutual recognition to confiscation orders (OJ L 328, 24.11.2006, p. 59).

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(7) The Union legal framework on mutual recognition of freezing orders and confiscation
orders has not kept up with recent legislative developments at Union and national levels. In
particular, Directive 2014/42/EU of the European Parliament and of the Council 7
establishes minimum rules on the freezing and the confiscation of property. Those
minimum rules concern the confiscation of instrumentalities and proceeds of crime,
including in the cases of illness or absconding of the suspect or accused person, where
criminal proceedings have already been initiated regarding a criminal offence, extended
confiscation and confiscation from a third party. Those minimum rules also concern the
freezing of property with a view to possible subsequent confiscation. The types of freezing
orders and confiscation ▌ orders covered by that Directive should also be included in the
legal framework on mutual recognition.

7 Directive 2014/42/EU of the European Parliament and of the Council of 3 April 2014 on the
freezing and confiscation of instrumentalities and proceeds of crime in the European Union
(OJ L 127, 29.4.2014, p. 39).

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(8) When adopting Directive 2014/42/EU, the European Parliament and the Council stated in
a declaration that an effective system of freezing and confiscation in the ▌Union is
inherently linked to the well-functioning mutual recognition of freezing orders and
confiscation orders. Considering the need to put in place a comprehensive system for the
freezing and confiscation of the instrumentalities and proceeds of crime in the Union, the
European Parliament and the Council called on the Commission to present a legislative
proposal on the mutual recognition of freezing orders and confiscation orders.
(9) In its communication of 28 April 2015 entitled ‘The European Agenda on Security’, the
Commission considered that judicial cooperation in criminal matters relies on effective
cross-border instruments and that the mutual recognition of judgments and judicial
decisions is a key element in the security framework. The Commission also recalled the
need to improve the mutual recognition of freezing orders and confiscation orders.

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(10) In its communication of 2 February 2016 on an Action Plan for strengthening the fight
against terrorist financing, the Commission highlighted the need to ensure that criminals
who fund terrorism are deprived of their assets. The Commission stated that, in order to
disrupt organised crime activities that finance terrorism, it is essential to deprive those
criminals of the proceeds of crime. To that end, the Commission stated that it is necessary
to ensure that all types of freezing orders and confiscation orders are enforced to the
maximum extent possible throughout the Union by the application of the principle of
mutual recognition.
(11) In order to ensure the effective mutual recognition of freezing orders and confiscation
orders, the rules on the recognition and execution of those orders should be established by
a legally binding and directly applicable act of the Union.

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(12) It is important to facilitate the mutual recognition and execution of freezing orders and
confiscation orders by establishing rules that oblige a Member State to recognise, without
further formalities, the freezing orders and confiscation orders issued by another Member
State within the framework of ▌ proceedings in criminal matters and to execute those
orders within its territory.

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