Penal Vs. Confiscation-Only Approaches in Money Laundering Control

This article examines two primary approaches to money laundering control: traditional penal and confiscation-focused approaches. These approaches are evaluated based on their potential in confiscating criminal proceeds and deterring effects. Data from recent Lithuanian money laundering proceedings enriches this analysis. The data encompasses discontinued pre-trial investigations, final court judgments in criminal proceedings, and court decisions in civil proceedings against suspicious assets arising from discontinued pre-trial investigations. The research reveals limited success and minimal added value associated with the sole prosecution of money laundering, particularly in self-laundering cases. However, the study highlights the remarkable efficacy of a combined approach for combating illicit financial flows. This approach leverages the investigative powers available during pre-trial money laundering investigations alongside the rules and standards of civil proceedings. This synergy facilitates the successful declaration of suspicious assets as ownerless and subject to forfeiture by the state.