Some of Britain’s worst criminals are able to hide hundreds of millions of pounds of illicit profits in Europe because legal flaws prevent the money being reclaimed.
Cecilia Malmström, EU commissioner for home affairs, claimed today that European crime bosses had “billions and billions” invested in gold, villas, restaurants and other assets which investigators were powerless to recover because of differences between the legal systems of the 27 member states.
Britain was recouping only “a fraction” of the money it could, she said. She spoke after it was revealed that more than 100 “Mr Bigs” who have been ordered to hand back more than £1 million each have failed to pay and now owe taxpayers £584 million in all.
Ms Malmström, a member of Sweden’s Liberal People’s Party, urged the Government to back new EU rules to strengthen confiscation powers. She said British officials were among the most effective at recovering criminals’ assets but much greater success could be achieved if European laws were harmonised.
“If you opt in there is an immense amount more that could be recovered. I have seen figures showing that you [the UK] recover £150 million to £200 million a year, but that’s still a fraction of what it could be.
“It’s important to get the money so crime doesn’t pay. In times of crisis it’s also important to get all the money back for the taxpayer that we can.”
Her proposals, which could come into force next year, include “extended confiscation” powers allowing the seizure of goods not linked to a specific crime, but which result from similar activities by a convict. Tougher powers to seize property transferred to third parties, including wives, are also planned.
Stronger rules on the temporary freezing of suspects’ property would also be introduced to stop large sums being lost before the courts can act.
European Commission figures show that in the UK in 2006, organised criminals made about £15 billion but the state recovered just £125 million.
