Council Approves Signing of the Additional Protocol
By Decision (EU) 2026/2356 of 13 October 2026, the Council of the European Union authorised the signing, on behalf of the European Union, of an Additional Protocol to the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism. The authorisation is subject to the conclusion of the Additional Protocol.
The Decision is based on Article 114 in conjunction with Article 218(5) of the Treaty on the Functioning of the European Union. It entered into force on the date of its adoption. The European Union signed the Additional Protocol on 14 October 2026.
Drafting and Signing of the Additional Protocol
Negotiations on Behalf of the European Union
By Decision (EU) 2024/1764 of 13 June 2024, the Council had already authorised the European Commission to represent the European Union in the negotiations on the Additional Protocol. The Commission subsequently participated in the negotiations on behalf of the Union and ensured that the negotiated text was compatible with the relevant EU law.
In 2023, the Council of Europe established the Committee of Experts on Criminal Asset Recovery, PC-RAC. This body negotiated and drafted the Additional Protocol.
The Committee of Ministers of the Council of Europe adopted the text on 15 May 2026 during its 135th Session in Chişinău, Republic of Moldova. The Additional Protocol is listed by the Treaty Office of the Council of Europe as CETS No. 232.
First Signatories
The Additional Protocol was opened for signature on 14 October 2026 on the occasion of the 2026 Octopus Conference on Cybercrime. Georgia, Greece, Hungary, Luxembourg, Monaco, Montenegro, San Marino and the United Kingdom were the first eight of the Council of Europe’s 46 member states to sign it. The European Union also signed the Additional Protocol.
The former Chair of PC-RAC, Cornel–Virgiliu Călinescu, presented the Additional Protocol during the conference, which was held from 14 to 16 October 2026.
Areas Covered by the Additional Protocol
Combating Money Laundering and Virtual Assets
The Additional Protocol contains provisions on its purpose and material scope. It also defines the terms “virtual asset” and “virtual asset service provider”.
Further provisions concern, in particular:
- Financial intelligence units are granted powers to suspend certain transactions.
- Cooperation between financial intelligence units is regulated.
- A centralised automated mechanism or a comparable system must be established at national level.
- The mechanism is intended to record information on bank accounts, payment accounts, securities accounts, safe-deposit boxes and virtual asset accounts.
- Direct and mandatory cooperation is envisaged between the asset recovery offices of the Parties.
- The asset management offices of the Parties are also to cooperate directly and on a mandatory basis.
In the Council’s assessment, the Additional Protocol can significantly strengthen anti-money laundering frameworks and the associated cross-border cooperation. This applies both to Council of Europe member states and to other major international partners that may become Parties.
Confiscation and Return of Assets
Subject to the conditions laid down in the Additional Protocol, it permits the confiscation of assets connected with further criminal conduct. In certain cases, confiscation may also take place without a criminal conviction.
Assets held by third parties may also be covered. The protection of bona fide holders remains safeguarded. Subject to certain conditions, states may return confiscated assets to their lawful owners or use them to compensate victims. Such return or compensation may take place even before a final confiscation order has been issued.
Relationship with European Union Law
Overlap with Common EU Rules
The provisions of the Additional Protocol overlap to a significant extent with, and are based on, common European Union rules. In this context, the Council Decision refers in particular to:
- Directive (EU) 2024/1260 on asset recovery and confiscation.
- Directive (EU) 2024/1640 on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing.
- Regulation (EU) 2018/1805 on the mutual recognition of freezing orders and confiscation orders.
There is further overlap with Directive 2014/42/EU on the freezing and confiscation of instrumentalities and proceeds of crime. That Directive remains applicable only in relation to Ireland.
There are also substantive points of contact with Council Framework Decisions 2003/577/JHA, 2005/212/JHA and 2006/783/JHA. However, these legal acts remain applicable only in relations with and between Denmark and Ireland.
Competences of the Union and the Member States
Under Article 37 of the Additional Protocol, the European Union may sign the treaty. Since both the Union and its Member States have competence in the areas covered, they are to become Parties alongside one another.
The Union’s signature relates to those parts that fall within its competence. This applies insofar as the Additional Protocol may affect common EU rules or alter their scope.
Such an effect may also result from international commitments where the area concerned is already largely covered by common EU rules. This requires that the international commitments be capable of affecting the uniform and consistent application of those rules or the proper functioning of the system established by them.
In areas of shared competence, competence remains with the Member States insofar as the Additional Protocol neither affects common EU rules nor alters their scope. The foreseeable future development of those rules must also be taken into account. Decision (EU) 2026/2356 is without prejudice to signature by the Member States in accordance with their respective domestic procedures.
Data Protection Consultation
The European Data Protection Supervisor was consulted pursuant to Article 42(1) of Regulation (EU) 2018/1725. The Supervisor delivered an opinion on 10 September 2026.
That Regulation governs the protection of natural persons with regard to the processing of personal data by the institutions, bodies, offices and agencies of the European Union and the free movement of such data. The consultation therefore took place within the data protection framework applicable to EU institutions.
Signature Does Not Yet Mean Entry into Force
The Council Decision authorises only the signing of the Additional Protocol on behalf of the European Union, subject to its conclusion. The Additional Protocol has not entered into force merely by being signed.
Under Article 38(1), it enters into force on the first day of the month following the expiry of a period of three months after the date on which five signatories have expressed their consent to be bound. At least three of those five signatories must be member states of the Council of Europe. Five ratifications or corresponding binding declarations of consent are therefore required, including at least three from Council of Europe member states.
The text of the Additional Protocol will be published together with the decision on its signing. For companies, investors and high-net-worth individuals, the proposed rules on combating money laundering, asset recovery and cross-border cooperation may become highly significant. For questions regarding the potential implications, MTR Legal provides legal advice on white-collar criminal law tailored to the circumstances of each case.
