Iceland plans asset confiscations without criminal convictions

Iceland’s Ministry of Justice plans to expand the authorities’ power to confiscate assets believed to be linked to criminal activity, even when no conviction has been secured for the offence thought to have generated the wealth, mbl.is reports.

The proposal is included in the ministry’s planned legislative amendments targeting organised criminal activity, published in the government’s consultation portal.

The ministry says it intends to strengthen the confiscation of illicit proceeds, including by establishing powers allowing authorities to confiscate assets in certain circumstances without a conviction. Justice Minister Þorbjörg Sigríður Gunnlaugsdóttir is responsible for the ministry.

Conditions have not been specified

The proposal does not state exactly which conditions would have to be met for assets to be confiscated in this way. It also does not explain what standard of proof would apply or whether asset owners would have to demonstrate that their assets came from legitimate sources.

The details will presumably be set out in the bill when it is submitted.

Similar rules adopted in Europe

Comparable powers have been introduced within the European Union. Under an EU directive from 2024, courts may, in certain circumstances, confiscate unexplained assets without proving each individual offence that generated the wealth.

However, a court must find that it has been sufficiently demonstrated that the assets stem from criminal activity carried out by an organised criminal group, and that the activity could generate substantial financial gain.

Factors may include whether the value of the assets is far higher than the person’s legitimate income, whether there is a credible explanation for their lawful origin and whether the person is connected to people linked to organised criminal activity.

Wider measures against organised crime

The proposed change is part of a broader package intended to strengthen measures against organised criminal activity. The government also plans to broaden the definition of organised criminal groups and introduce specific aggravating circumstances when offences are committed as part of such groups or when children and young people are used to commit crimes.

The proposals would also revise police investigative powers, rules on pre-trial detention and the authority to carry out certain investigative measures before obtaining a court order when urgent investigative interests are considered to require it.

The plans form part of the government’s Safer Iceland policy against organised criminal activity, which was introduced in January.