Tiago Coelho Magalhães signs article on the possibility of loss of assets without conviction

Tiago Coelho Magalhães, senior associate in the criminal, regulatory offences and compliance practice at Morais Leitão, analyses the risks and advances of the new legislation on the loss of assets in criminal proceedings, even without a court conviction.

The bill presented by the Government, although announced as a new measure, essentially transposes European Directive 2024/1260, which requires Member States to adopt effective mechanisms for the seizure and confiscation of assets associated with criminal activity, even without a court conviction.

In an opinion piece published in Advocatus, Tiago Coelho Magalhães highlights positive aspects, such as the creation of the figure of the ‘affected person’ in criminal proceedings, which protects the rights of third parties who hold seized assets. However, he warns of constitutional risks associated with loss without conviction, provided for in situations such as death, illness, flight or prescription. The proposal allows the court to determine forfeiture based on evidence of the criminal origin of the assets, even without identifying the exact crime.

The possibility of forfeiture of third-party assets and ‘immediate actions’ to freeze assets also raise concerns, requiring legislators and courts to exercise particular caution to ensure legal certainty and prevent arbitrary confiscation.

Read the full article on the ECO website.

(The article is in portuguese only)