On Thursday 17 October 2024, Luxembourg's Asset Management Office (BGA) presented its first activity report for the 2022-2023 financial year; this report highlights the actions and results achieved by the BGA since its creation, following the adoption of the law of 22 June 2022 on the management and recovery of seized and confiscated assets. This legislation marked a significant step forward in the fight against economic crime, by transposing Directive 2014/42/EU of the European Parliament and Council.

The “Crime Does Not Pay” policy

The “Crime Does Not Pay” policy is based in particular on the broadening of the scope of Article 31 of the Criminal Code, which not only allows the confiscation of the proceeds and instruments of a crime or offence, but also the substituted assets or their equivalent in monetary value. Extended confiscation allows the confiscation of assets whose origin the convicted person, given the opportunity to explain, has not been able to justify, while value confiscation allows the confiscation of a sum to be ordered even if no assets have been identified or when the seized assets are insufficient to cover the object, product or financial benefit derived from an offence.

The role and missions of the BGA

The second pillar of this policy consists of strengthening the institutional actors involved in the process of seizure, recovery and management of assets. Created by the law of 22 June 2022, the BGA has been operational since 1 October 2022. It manages sums, receivables, virtual assets and, at the request of the judicial authorities, other seized assets as well as, at the request of the State Attorney General, confiscated assets.

Activities and achievements of the BGA in 2022-2023

The BGA activity report details its operations of management, alienation and destruction of assets, as well as the revenues generated by the BGA for the Fund for the fight against certain forms of crime and the Public Treasury.

It also includes a statistical report of seizures and restitutions ordered by the judicial authorities.

In 2023, the BGA's annual budget was €300,000 and had nine agents.

The BGA has developed two IT applications in collaboration with the State Information Technology Center (CTIE) to optimise its activities. In March 2023, an electronic procedure was put online on MyGuichet.lu to allow financial institutions and virtual asset service providers to report seizures prior to the law of 22 June 2022 to the BGA. In December 2023, the register of seized and confiscated assets (GOS) became operational.

The BGA in figures

As of 31 December 2023, the BGA managed 762 files.

Assets under management included: 1,743 credit balances; 113 securities accounts; 384 cash amounts; 2 virtual assets; 7 receivables; 99 real estate assets; 22 vehicles; and 1,836 other assets

The total value of assets under management exceeds €1 billion.

Contributions to the Fund for Combating Certain Forms of Crime (€5,325.39) and to the State budget (€328,004.76) are expected to increase in the coming financial years.

The BGA also destroyed more than 42 tonnes of property confiscated or due to the State.

Proposals and reflections

In accordance with the wishes of the legislator, the activity report includes proposals aimed at improving the law and practices relating to seizure and confiscation.