Seizure of Business Assets: Trends and Defence Practice

The seizure of property and bank accounts remains one of the most painful instruments of pressure on business in criminal proceedings. Even in the absence of a guilty verdict, such restrictions can effectively paralyse operational activity and cause substantial financial losses.

The European Business Association recently hosted a webinar entitled "Seizure of Business Assets and Accounts in Criminal Proceedings: Trends and Defence Practice" led by Oleksandr Shevtsov, a business defense lawyer and advisor at Riyako & Partners.

Oleksandr presented the results of his research into the practice of imposing and lifting asset seizures: the approaches of investigators, the practice of Ukrainian courts, the case law of the European Court of Human Rights (ECtHR), and his own experience in defending businesses in criminal proceedings. The lawyer drew attention to the current trends emerging in business asset seizure cases, in particular:

• Law enforcement officers are increasingly attempting to seize not only physical property, but also intangible assets by recognising them as material evidence in criminal proceedings.
• Asset seizure cases are reviewed significantly faster than applications for their cancellation.
• Ukrainian courts are increasingly taking into account the passivity of the pre-trial investigation body and the negative consequences of the seizure for the company when deciding whether to lift it.
• ECtHR case law confirms that prolonged or disproportionate asset seizures can violate the guaranteed right to property.

What businesses should consider today:

• React promptly to any procedural actions taken by law enforcement agencies.
• Record the negative consequences of the seizure for business operations.
• Utilise not only Supreme Court practice, but also ECtHR rulings as an additional argument when defending the right to property.
• Engage Riyako & Partners lawyers as early as the search stage to minimise the seizure of property, or before a crisis hits to assess risks in advance and prepare the team for interactions with law enforcement.