The Council of the European Union is being asked to authorise the European Commission to sign 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 (Warsaw Convention) on behalf of the EU. The proposal, published on 14 July 2026 and scheduled for discussion on 20 July 2026, updates the 2005 Warsaw Convention to address evolving money laundering and terrorist financing threats, including financial crime's impact on economic security.
The Protocol covers anti-money laundering measures such as Financial Intelligence Unit suspension powers and centralised bank account mechanisms, as well as asset recovery provisions including extended confiscation, asset management offices, and social reuse of assets. Negotiations took place between May 2024 and December 2025, and the Council of Europe's Committee of Ministers adopted the Protocol on 15 May 2026, opening it for signature on 14 October 2026. The Protocol will enter into force on the first day of the month after three months from when five signatories, including at least three Council of Europe member states, consent to be bound.
The Commission's proposal uses Article 114 of the Treaty on the Functioning of the European Union (TFEU) for anti-money laundering parts and Article 218(5) TFEU as the procedural basis. A separate proposal will cover asset recovery provisions under Articles 82(2), 83(1)-(2), and 87(2) TFEU. The Protocol is designed to be fully compatible with EU law, including Directive (EU) 2024/1640 (AMLD6), applicable from 10 July 2027, and Directive (EU) 2024/1260 on asset recovery.
the Protocol does not apply to Ireland for Directive (EU) 2024/1260 or to Denmark for Directives 2014/42/EU and 2024/1260. Directive 2014/42/EU remains in force for Ireland, and Framework Decision 2005/212/JHA for Denmark.
Stakeholder impact The Protocol strengthens the EU's anti-money laundering and asset recovery framework, benefiting law enforcement and financial intelligence units across member states by enhancing cross-border cooperation and tools. Financial institutions may face additional compliance requirements as national authorities implement new measures such as centralised bank account registries and extended confiscation powers. Civil society could benefit from provisions on social reuse of confiscated assets, which may channel recovered funds into community projects. The opt-outs for Ireland and Denmark create a patchwork of applicability, potentially complicating enforcement in cross-border cases involving those countries.
Institutional follow-up If the Council authorises signature, the Commission will sign the Protocol on behalf of the EU on 14 October 2026 or thereafter. The EU will then need to ratify the Protocol for it to enter into force for the Union. The separate proposal on asset recovery provisions under TFEU Articles 82 and 83 will follow later.