The confiscation of property derived from criminal offenses is one of the key mechanisms in the fight against organized crime and corruption. This process is based on the premise that criminal activities do not pay off and that, sooner or later, any property gained from criminal activity will be confiscated, whether directly or indirectly.
It is a special procedure within criminal law, regulated by a separate law – the Law on the Confiscation of Property Derived from Criminal Offenses. This process is initiated by the state when there are grounds to suspect that an individual possesses property acquired through various criminal actions.
The first phase of the process is the financial investigation, which is initiated by the order of the public prosecutor when there are grounds to suspect that an individual possesses significant property derived from criminal offenses. In the financial investigation, evidence is gathered regarding the property, lawful income, living standards, and expenses of the accused, their accomplice, or the deceased, as well as evidence concerning property inherited by legal successors or property transferred to third parties. The financial investigation is led by the public prosecutor, and based on their instructions, the actions during the financial investigation are carried out by a special unit within the Ministry of Internal Affairs – the organizational unit responsible for financial investigations. Therefore, the purpose of the financial investigation is to examine and determine the origin of the property possessed by a particular individual.
During the procedure, certain security measures may be imposed, such as the temporary confiscation of property, which can be ordered when there is a likelihood that later confiscation of the property derived from criminal offenses would be difficult or impossible. The court makes this decision at the request of the public prosecutor. To prevent the sudden disposal of such property, the public prosecutor can issue an order to prohibit the disposal of the property and temporarily seize movable property if there is a likelihood that the owner will dispose of property derived from criminal offenses before the court decides on the request for temporary confiscation. This measure by the public prosecutor can last until the court decides on the request for temporary confiscation, but it cannot exceed three months from the day the order is issued. If the court issues a decision on the temporary confiscation of property derived from criminal offenses, it remains in effect until the court decides on the request for permanent confiscation.
Temporarily confiscated property derived from criminal offenses is handed over to the Directorate for the Management of Confiscated Property, an agency within the Ministry of Justice, which manages the property until a decision is made regarding permanent confiscation. In justified cases, the director of the Directorate may decide that the temporarily confiscated property remains with the owner, with the obligation to take care of it with due diligence. The Directorate manages the confiscated property, bears the costs of its regular maintenance, and has the right to sell the confiscated property through an oral public auction. Movable property that remains unsold for over a year may be donated for humanitarian purposes or destroyed. If it is determined, in accordance with this law, that temporarily confiscated property does not originate from a criminal offense, the seized funds or proceeds from the sale of the property will be returned to the owner without delay.
The public prosecutor submits a request for the permanent confiscation of property derived from criminal offenses within six months from the date the final judgment is delivered, confirming that a criminal offense has been committed. The court makes a decision on the request for permanent confiscation at the main hearing. Property and funds obtained from the sale of the property become the property of the Republic of Serbia once the decision on permanent confiscation becomes final.