The Impact of the Legalization of Criminally Obtained Funds on the Economy of Latvia

Abstract

The legitimate aim of confiscation of proceeds of crime can be defined as the removal of proceeds of crime from lawful civil circulation in order to prevent its further circulation and the further commission of criminal offences and to reduce the financial incentive to commit criminal offences. The author’s research of case law and latest trends has led her to the conclusion that the recognition of property as proceeds of crime requires time and understanding of the application of the respective rules in practice. The paper is second part of previously published article. The paper studies current issues in money laundering cases and latest trends. To prove the legal origin of property, it is often the case that the evidence presented is deemed insufficient by the persons directing the proceedings. In many cases, property or other tangible assets are confiscated simply because of a lack of understanding or adequate education, knowledge and practical experience, which leads to unjustified decisions to declare property as proceeds of crime and to confiscate it for the benefit of the state. This also puts the state itself at risk, as eventually diverse types of claims are brought, including for damage compensation; human rights violations are also identified. Keywords: stand alone, anti-money laundering, money laundering and related issues