Asset forfeiture

Asset forfeiture or asset seizure is a form of confiscation of assets by the authorities. In the United States, it is a type of criminal-justice financial obligation. It typically applies to the alleged proceeds or instruments of crime. This applies, but is not limited, to terrorist activities, drug-related crimes, and other criminal and even civil offenses. Some jurisdictions specifically use the term "confiscation" instead of forfeiture. The alleged purpose of asset forfeiture is to disrupt criminal activity by confiscating assets that potentially could have been beneficial to the individual or organization. Asset forfeiture was found to generally increase with the percentage of the assets retained depending on electoral incentives.

The standards of proof generally differ in criminal procedure and civil procedure. In civil cases the preponderance of the evidence which is described as anything over fifty percent can be sufficient.

To facilitate international cooperation in confiscation, the United Nations Convention against Corruption encourages state parties to consider taking the necessary measures to allow confiscation of the proceeds of corruption without a criminal conviction in cases in which the offender cannot be prosecuted by reason of death, flight or absence or in other appropriate cases.

Civil asset forfeiture has been harshly criticized by civil liberties advocates for its greatly reduced standards for conviction, reverse onus, financial conflicts of interests arising when the law enforcement agencies who decide whether or not to seize assets stand to keep those assets for themselves, and violation of separation of powers and due process.

Part XII.2 of the Criminal Code, a federal statute, provides a national forfeiture régime for property arising from the commission of a designated offence (i.e. most indictable offences), subsequent to conviction. Provision is also made for the use of restraint and management orders to govern such property during the course of a criminal proceeding.

All provinces and territories except Newfoundland and Labrador, Prince Edward Island and Yukon Territory, have also enacted statutes to provide for similar civil forfeiture régimes.^{[citation needed]} These generally provide, on a balance of probabilities basis, for the seizure of property:

The Supreme Court of Canada has upheld civil forfeiture laws as a valid exercise of the provincial government power over property and civil rights. The extent to which the Charter of Rights and Freedoms applies to civil forfeiture statutes is still under dispute. To the extent that such laws are applied for a "punitive" purpose, there is case law to suggest that the Charter applies. In cases where evidence has been obtained illegally, courts in Alberta and British Columbia have excluded such evidence.

In April 2014, the European Parliament and the Council of the European Union enacted Directive 2014/42/EU on the freezing and confiscation of proceeds of crime in the European Union. The directive allows the seizure and confiscation of property without a criminal conviction only under very specific circumstances. Article 4 states: