Council of Europe Adopts Warsaw Protocol to Bolster Global Asset Recovery

Council of Europe Adopts Warsaw Protocol to Bolster Global Asset Recovery

The Council of Europe has adopted a new protocol to the Warsaw Convention, significantly modernizing the legal framework to combat money laundering and terrorist financing. This treaty empowers member states to monitor suspicious transactions, including crypto-assets, and disrupt the financial foundations of sophisticated transnational criminal networks.

RMN News Political Desk
New Delhi | May 15, 2026

Modernizing the Architecture of Global Asset Recovery

The Ministers for Foreign Affairs of the 46 Council of Europe member states have officially adopted an additional protocol to the Warsaw Convention, the cornerstone international instrument addressing the laundering, seizure, and confiscation of criminal proceeds. This new treaty is a direct response to the increasing sophistication of transnational criminal networks that utilize advanced technologies to move illicit financial flows through the global system.

Enhanced Confiscation and Investigative Powers

The protocol introduces several robust legal mechanisms designed to ensure that crime does not pay. National courts will now have the authority to confiscate assets belonging to a convicted person beyond those linked to a specific offense, provided the property is found to derive from criminal conduct. Furthermore, the treaty enables non-conviction-based confiscation, allowing for the seizure of assets via court order when they are suspected of being proceeds of crime, even in the absence of a criminal conviction.

“With this protocol, states are equipping themselves with stronger means to combat money laundering, disrupt criminal networks, defend democracy across borders and across technologies, and better protect the victims of financial crime.” — Alain Berset, Secretary General of the Council of Europe

To support these efforts, the protocol mandates that each party establish or designate specialized Asset Recovery Offices (AROs) for tracing criminal property and Asset Management Offices (AMOs) to oversee frozen or seized assets.

Virtual Assets and Financial Intelligence

Recognizing the role of modern technology in financial crime, the protocol expands the reach of Financial Intelligence Units (FIUs). These units will gain broader powers to obtain data from a wider array of entities, specifically including virtual-asset service providers. Competent authorities will be granted rapid access to information regarding account holders and crypto-asset owners through automated central mechanisms.

International Cooperation and Victim Restitution

A primary objective of the protocol is to strengthen cross-border judicial and law enforcement collaboration. It facilitates the creation of joint investigative teams, regulates asset-sharing agreements between states, and mandates direct cooperation between national AROs and AMOs to expedite the freezing of assets.

Beyond enforcement, the treaty prioritizes the rights of victims. Under specified conditions, states may return confiscated property to legitimate owners or provide compensation even before a final confiscation decision is reached. Additionally, the protocol encourages the social reuse of seized assets, such as utilizing funds confiscated from drug traffickers to support rehabilitation centers.

The additional protocol is scheduled to be opened for signature in Strasbourg on October 14, 2026, at the upcoming cybercrime conference.