Social Reuse of Seized Assets: Benefits and Opportunities

Naomi Fowler: Welcome to the Taxcast, a monthly podcast from the Tax Justice Network discussing corruption, tax abuse, financial secrecy, and potential reforms. I’m Naomi Fowler, and today we’ll also delve into the social reuse of assets seized from criminal activities.

Amber Phillips: This concept appeals to our fundamental sense of justice.

Naomi Fowler: This month’s episode carries an uplifting message.

Before we dive deeper, let’s cover some recent news regarding President Donald Trump. He has granted clemency to Changpeng Zhao, commonly referred to as ‘C Zee’ (or ‘C Zed’ in the UK). Zhao is the billionaire founder of Binance, the world’s largest cryptocurrency exchange. A few years back, Zhao and Binance pled guilty to serious violations: breaching the Bank Secrecy Act, failing to register as a money-transmitting business, neglecting anti-money laundering statutes, and defying laws aimed at curbing terrorist financing. They faced unprecedented penalties from US courts amounting to over $4 billion. Zhao personally received a $50 million fine and served four months in prison. Here’s Scott Greytak, Deputy Executive Director of Transparency International US:

Scott Greytak: This recent pardon for the founder of Binance provokes grave concerns regarding how the US will address accountability in major financial crime cases. Binance, operating as the world’s largest cryptocurrency exchange, was tied to a vast investigation culminating in a penalty package totaling $4.3 billion two years ago, due to anti-money laundering and sanctions violations. As part of this agreement, Binance committed to a comprehensive overhaul of its compliance measures, overseen by independent monitors from the DOJ and the Treasury Department for the next three to five years.

In light of the DOJ and Treasury’s findings, Binance has faced scrutiny for prioritizing growth at the cost of compliance over the years. Investigations have revealed immense failures, including disregarding Suspicious Activity Reports and facilitating transactions with sanctioned nations like Iran and North Korea.

Naomi Fowler: These are severe offenses, and their global consequences are vast. Here’s Scott again.

Scott Greytak: Granting clemency to an executive convicted in a notable financial crime undermines the certainty of how the US upholds its own regulations. America has consistently portrayed itself as a leader in enforcing laws against illicit finance, but this decision complicates global efforts toward accountability and trust. This is not merely a partisan issue; it touches on the core rule of law ideals that the US seeks to uphold as a model for other nations.

Naomi Fowler: Shortly after this pardoning, Binance’s US Exchange announced it would allow trading in two cryptocurrencies associated with Trump, raising serious red flags.

Now, let’s preview a new podcast we’re developing.

TRAILER for The Corruption Diaries:

Naomi Fowler: The Tax Justice Network’s podcast series, The Corruption Diaries, is on the way. This series features firsthand accounts from veterans of the anti-corruption movement.

Richard Allen: When fighting against injustice, you might find yourself in some dark places.

Naomi Fowler: Join me for Season Two, which chronicles one man’s battle against British authorities from his garden shed, uncovering two significant tax abuse schemes.

Richard Allen: We’re discussing extensive fraud, totaling 1.5 billion.

Naomi Fowler: This journey began in the 1990s, when Richard launched a mail-order business and a record label to promote the alternative music he loved, leading to his discovery of the progressive rock band Porcupine Tree.

Richard Allen: I remember cycling to work, hearing a song and thinking, ‘This could fill a stadium.’ Years later, it did.

Naomi Fowler: This series is about his struggle to build a record label, elevate important music, and seek justice against authorities who ignored tax loopholes exploited by opportunistic businesses.

Richard Allen: Leaving the High Court felt surreal; it was almost as if I had successfully orchestrated the events that unfolded.

Naomi Fowler: Be sure to tune in for Season Two of The Corruption Diaries, launching on January 2, 2026. Search and subscribe wherever you get your podcasts.

Naomi Fowler: As we consider the complexities of addressing global financial systems to tackle tax evasion, money laundering, and other crimes, we must also ask: what happens after law enforcement recovers these assets from criminals?

How can these seized resources serve taxpayers and society? We believe there are overlooked opportunities to solicit support for financial transparency while showcasing the commendable efforts of tax officials, asset recovery specialists, financial investigators, and law enforcement.

[Audio clip]

Naomi Fowler: In the background, you hear the sound of a person with disabilities being carefully lowered onto a radiant 13-meter sailboat in Galicia, Spain. It’s a bright blue sky, and the individual beams with joy, flashing a ‘V’ sign. This sailboat was confiscated from drug traffickers in the late 1990s and is now used by a disability organization to make sailing accessible to those who may never have had the chance. It has transformed the lives of thousands, illustrating a powerful example of how seized assets can positively impact society. While these initiatives may not be flawless and room for enhancement exists, they exhibit the potential for meaningful social reuse of confiscated assets.

Europol reports that only 1% of annual profits stemming from crime in the EU are confiscated, which is astonishing. Additionally, the European Commission reveals that only 19 out of 27 EU member states have enacted specific legislation regarding the social reintegration of seized assets. There’s a vast amount of work ahead for nation-states to catch up, and significant progress can be made at the local level, as evidenced by our conversation with Dr. Amber Phillips from the University of Bristol, who focuses on the social reuse of recovered assets.

Amber Phillips: The social reuse of confiscated assets aims to turn crime’s proceeds into beneficial contributions to society. It involves recognizing society as a victim of crime. While asset recovery often pursues compensation for identifiable victims—more easily defined in cases of fraud—it becomes more complex when victims are not clearly identifiable. In these instances, society itself emerges as a victim, prompting us to consider how these ill-gotten gains can be redirected to benefit the community. From projects aimed at crime prevention to youth services and even food banks catering to infants, myriad avenues exist for deploying these funds positively.

My interest in social reuse blossomed during my time in Italy, where I met individuals working with anti-mafia efforts. Italy’s robust legislation allows for confiscated assets from convicted mafiosi to be allocated for community benefits, serving a dual purpose of dismantling the mafiosi’s financial power while revitalizing community resources.

Naomi Fowler: That’s incredibly compelling.

CLIP

Children stand outside a 1,600-square-meter farmhouse in northern Italy, just finishing a guided tour.

Boy 1: “Today, we saw the largest villa in Lombardy, confiscated from the mafia.”

Naomi Fowler: The boy reveals that they’ve toured a grand estate once owned by mafia figures. The girl adds:

Girl: “I felt so moved by its story.”

Naomi Fowler: And another boy remarks:

Boy 2: “What shocked me the most was that when this criminal discovered his house had been seized, he attempted to destroy everything he could. I was struck by that cruelty.”

Naomi Fowler: Consider how these children have lived in the shadow of a mafia-owned estate, only to witness a transformative change. Numerous instances of social asset reuse abound, especially in Italy.

Amber Phillips: People I worked with often operated out of former mafia properties, transforming them into community centers. For example, a space previously used for illegal gambling evolved into a local community facility, while a once-opulent mafia villa became a cultural hub for the community. My experiences ignited my deep-seated opposition to the mafia and eventually led me to focus on asset recovery. While UK laws differ, there are parallels, and I’m excited about the versions of social reuse developing here.

Naomi Fowler: Our co-producer Leo Schick accompanied Amber to discover some notable initiatives taking place in England.

Leo Schick: Indeed! It was enlightening and uplifting. Social reuse of assets vividly illustrates the impactful roles played by financial investigators and asset recovery specialists.

Naomi Fowler: Absolutely! Their work intersects significantly with the Tax Justice Network’s advocacy for transparency in ownership, tracking illicit finance, and navigating through various secrecy jurisdictions and tax havens.

Leo Schick: During my discussion with Amber, I found myself envisioning a gripping Netflix series centered on financial investigators, and I wholeheartedly agree that highlighting their work is crucial for understanding the inadequacies of our financial and legal systems.

Naomi Fowler: I would certainly tune in! Recognizing the hurdles these investigators face enhances our understanding of how addressing financial opacity could greatly simplify future investigations. Here’s Amber once again.

Amber Phillips: They are the unsung heroes of law enforcement. You rarely see financial investigators in TV dramas or read about asset recovery in crime coverage. Yet it plays a crucial role in achieving justice. When people learn about asset recovery—recovering money from wrongdoers—it resonates with their innate sense of justice, making it disappointing that mainstream crime stories neglect this aspect.

People often assume issues related to finance are too convoluted to engage with, and the timing of post-conviction confiscation can lead to decreased public interest as the case evolves. However, I believe we should acknowledge people’s ability to grasp these issues, as many are keen on understanding asset recovery’s role as it offers a tangible sense of justice, especially in our discussions around custodial sentences.

In terms of public trust in law enforcement and the rule of law, awareness of the extensive behind-the-scenes work by dedicated teams can reaffirm faith in justice. Financial investigations help limit the ongoing harm caused by many skilled criminals. Furthermore, conceiving social reuse as a strategy not only nears the accountability of criminals but also channels recovered resources into communities affected by their activities.

Leo Schick: I asked Amber about her perspective on success in asset recovery, and her response took me by surprise. She emphasized it’s not solely about numbers.

Amber Phillips: I’m nearing the culmination of a research project titled “Beyond the Figures,” which seeks to move beyond conventional metrics of success. Quantitative figures often fail to capture the complexity of impact in asset recovery. When I spoke to financial investigators about their views on success, various definitions emerged. A recurring theme was the desire to transform bad money into good—a motivating force that has resonated with me as well.

People are disheartened when they feel they’re not informed about the destination of recovered funds. During my interviews with financial investigators, many expressed disenchantment when their hard-fought recoveries seemed to vanish. This poses a significant concern not just operationally but also impacts morale and staff retention. We must showcase the outcomes of their efforts, demonstrating how recovered funds can make meaningful contributions, whether through funding training programs or employing additional staff.

Furthermore, it’s crucial that motivations behind social reuse remain genuine.

Amber Phillips: Using social reuse merely for photo opportunities or political gains undermines its true purpose. Unfortunately, this happens when initiatives are spearheaded by those lacking a sincere commitment to community support.

Leo Schick: Our conversation revealed just how much remains unknown about social reuse.

Amber Phillips: Asset recovery is still a nascent area of research. While it’s gaining traction, social reuse remains under-explored, particularly in England and Wales. As far as I’m aware, I’m the only one conducting research in this realm, which speaks to the lack of a robust data foundation.

Naomi Fowler: However, promising practices exist in the UK. Leo, you visited Amber to observe social reuse efforts firsthand.

Leo Schick: Yes! I traveled to Wakefield in West Yorkshire, excited to join Amber at an award ceremony where community organizations received funding from seized assets. Amber highlighted that West Yorkshire stands out for its exemplary practices.

Amber Phillips: This level of community engagement is exceptional in the UK. Many areas lack such initiatives, making West Yorkshire’s efforts commendable. Other police forces in the country appear unaware of this model’s success.

Naomi Fowler: What specific work is being undertaken in West Yorkshire?

Leo Schick: Upon arriving, I was greeted by a well-attended event at a local school, complete with a generous buffet. Approximately 70 attendees, including financial investigators, police officers, and community organization representatives gathered. They were here to celebrate the awarding of funds recovered from criminal activities. Here’s an introduction from the Mayor of West Yorkshire, Tracy Brabin.

Mayor Tracy Brabin: I’m thrilled to see everyone here! This event signifies our commitment to redirecting the proceeds of crime back into communities that have suffered. Thank you!

[Applause]

Alison Lowe: This role is the highlight of my job, meeting the remarkable organizations I’ve collaborated with over the years.

Leo Schick: Deputy Mayor Alison described the overwhelming number of applications received, underscoring the community’s need for these resources. The selection process must have been challenging.

Alison Lowe: We received 217 applications requesting just under £2 million, but we have only slightly below £400,000 available. So, it’s clear that many deserving organizations are left wanting.

Leo Schick: Can you elaborate on how the funding process works?

Alison Lowe: We collaborate with our police to identify funds secured from criminal activity. We then reallocate those funds to the communities adversely impacted by crime, in accordance with the Proceeds of Crime Act. This evening symbolizes the culmination of the hard work invested by West Yorkshire Police and their economic crime unit to ensure that the money benefits those in need.

If grassroots organizations are struggling with funding, we provide sums of money to enable them to carry out essential community work, typically ranging from £10,000 to £20,000, depending on the total proceeds available.

Leo Schick: I spoke with representatives from some organizations benefitting from these contested funds.

Tasha Dyson: I’m Tasha Dyson, CEO of Fusion Housing, where we focus on providing housing support and services to address food poverty across Kirklees, Wakefield, and Calderdale.

Leo Schick: Tasha was present to collect a sizable check that could enhance Fusion’s efforts.

Tasha Dyson: This funding allows us to increase our efforts in helping individuals who have been sleeping rough for extended periods. With some grant backing, we attain accommodation and support for these individuals, and this funding enables us to expand our project.

Leo Schick: The event featured a diverse range of organizations tackling issues from art and community initiatives to self-defense, counseling, and housing. I even spoke with Derek Jones, Chair of the All Saints Landmark Centre, and Tony Macaluso from Chapel FM Art Centre, a community radio station and educational hub for radio in Seacroft, East Leeds.

Naomi Fowler: As podcasters, we hold a special appreciation for such initiatives!

Leo: Likewise, I felt a kinship with Tony. I asked Deputy Mayor Alison what sets West Yorkshire apart and fuels this initiative.

Alison Lowe: The Mayor and our police are dedicated to this cause. They are committed to bringing in these funds to ensure that grassroots organizations in West Yorkshire benefit, as they are the ones most affected by crime.

Numerous versions of Proceeds of Crime Act initiatives are underway across the country, but our engagement team proposed this model, recognizing its importance based on insights from community groups we collaborate with regularly.

Naomi Fowler: It sounds like a truly remarkable event.

Leo Schick: It was incredibly uplifting. I was initially surprised to see a financial investigator take to the stage and explain his role to community organizations, much like a conference presentation.

Nigel Crowther: Good evening! I’m Nigel Crowther, a senior financial investigator with the police. I find the work of asset recovery incredibly fulfilling. We’re taking funds from criminals and reallocating them to the good folks in our communities. I feel like Robin Hood!

Naomi Fowler: Who wouldn’t want to be Robin Hood? It’s evident he has a passion for his work. After his address, I spoke with Nigel about the challenges associated with retaining accredited financial investigators given the lure of more lucrative private sector opportunities. Amber believes that successful social reuse could alleviate some of these challenges.

Leo Schick: As we awaited our taxi after the event, Amber mentioned that issues surrounding investigator retention are significant. However, Nigel seems unequivocally content in his role.

Nigel Crowther: I’ve been in this role for 21 years, and I love it. I’m part of a fantastic team, with several colleagues who joined on the same day as me, and we remain united in our mission!

Leo Schick: His passion truly shone through, and initiatives like these undoubtedly reinvigorate his sense of purpose.

Nigel Crowther: Attending such events highlights the incredible impact we can achieve for local communities. I love sharing the narrative of how we reclaim funds from criminals and utilize them to uplift neighborhoods. The cycle completes as communities benefit from our efforts.

Leo Schick: Depending on how funds were sourced, differing amounts are available for community support. Nigel elucidated this to the audience.

Nigel Crowther: Our aim is to seize funds from drug dealers, fraudsters, and money launderers. We have two paths: the criminal courts and civil recovery. Cash, assets, account freezes, and even cryptocurrencies may be involved, but we prioritize gaining maximum returns through magistrate’s courts, as these routes yield a higher recovery rate.

Leo Schick: This division of proceeds dictates how funds are allocated among various authorities, including the government and police. Nigel shared intriguing tales about tracing criminal wealth, including one where they found cash hidden in various locations.

Nigel Crowther: We searched thoroughly, even finding money concealed in a frying basket!

Leo Schick: The hunt continued, revealing more stashed cash outside.

Nigel Crowther: We discovered eight bags hidden beneath the brush.

Leo Schick: This led to the seizure of an additional £80,000.

Nigel Crowther: Consequently, we seized a total of £95,000 from this individual.

Leo Schick: Financial scrutiny of their tax returns led to further investigation, escalating the case to the magistrate’s court.

Nigel Crowther: The magistrates confirmed that the seized cash was indeed criminal property, resulting in forfeiture of £95,000, with nearly £50,000 allocated for community use. It’s a win all around!

Leo Schick: Throughout the event, organizations proudly presented their incredible initiatives and collected their funds, including Tasha’s Fusion Housing.

Alison Lowe: Fusion Housing will leverage this funding to assist those experiencing homelessness.

Leo Schick: Here’s Tony from Chapel FM outlining his organization’s mission.

Tony Macaluso: We operate a beautiful art centre, a former chapel now a community radio station, promoting storytelling and creativity. We aim to elevate community voices using various media, including radio and podcasts.

Naomi Fowler: I was inspired by how transformative community projects can be. I must commend where I first found my footing in radio production back in Birmingham. It was called the Afro-Caribbean Resource Center, a modest yet vibrant hub fostering creativity—an experience that undoubtedly influenced my journey as a podcaster today.

Leo Schick: I also cherish my community radio roots at Residence FM in South London; they shaped my trajectory as well.

Alison Lowe: The Chapel FM Arts Centre produces a regular podcast highlighting the voices of asylum seekers and long-term residents, working to foster understanding and mitigate conflict.

Leo Schick: Tony again from Chapel FM expresses his gratitude.

Tony Macaluso: Receiving funding is wonderful, especially when it originates from assets reclaimed from organized crime—resources that have caused harm to the community. The opportunity to reinvest this money back into beneficial community initiatives is gratifying. We plan to engage youth about the significance of these funds.

Tracy Brabin: This event has allocated over £400,000 back to the community—what a difference you’re all making. It’s a proud moment to take funds once taken by criminals and redirect them to meaningful causes.

Leo Schick: It was a truly uplifting experience. To cap the event, the attendees gathered for a photo.

Taking a photo: Alright, on three, two, one…big smiles!

Leo Schick: Among the featured organizations, Dance United shared their mission, culminating in a dancer named Alysha reciting a heartfelt poem about her passion for the performing arts.

Alysha, Dance United: “No backward glance, just our passion held in our hands while we dance upon the stage, a little like a cage. Then the light comes along in waves, opening that cage to a place of praise, leaves me in a cradle of creation and wonderful days.”

Naomi Fowler: What a beautiful moment!

Leo Schick: Amber was visibly touched—and so was I.

Amber Phillips: I didn’t anticipate becoming so emotional this evening. Listening to a poignant poem illustrating the transformative impact of a dance society on an individual’s confidence was incredibly moving.

Naomi Fowler: It’s refreshing to acknowledge the positive aspects arising from our advocacy against economic crime and corruption. This is a heartening example of how recovered funds are put to good use.

Leo Schick: It’s rewarding to witness the myriad ways in which community empowerment occurs through social reuse, enhancing public understanding of the roles financial investigators play and underscoring the importance of financial transparency.

Naomi Fowler: It’s incredible to see the remarkable impact that a single city or region can make. Thank you for listening this month! A special thanks to Leo for his insightful trip to West Yorkshire and all the production work. We’ll be back next month—goodbye!