Policies to engage governmental and regulatory bodies responsible for granting licences, authorisations, procurement contracts or subsidies should be developed (the 'administrative approach') to protect the economy against infiltration by criminal networks. The Commission will give practical support to Member States by establishing in 2011 a network of national contact points to develop best practices, and by sponsoring pilot projects on practical issues. Counterfeit goods generate large profits for organised crime groups, distort the single market's trade patterns, undermine European industry and put the health and safety of European citizens at risk. The Commission will therefore, in the context of its forthcoming action plan against counterfeiting and piracy, take all appropriate initiatives to foster more effective enforcement of intellectual property rights. Meanwhile, to combat the sale of counterfeit goods on the internet, Member States' customs administrations and the Commission should adapt laws where necessary, establish contact points in national customs and exchange best practices. Action 3: Confiscate criminal assets To combat the financial incentive of criminal networks Member States must do all they can to seize, freeze, manage and confiscate criminal assets, and ensure that they do not return to criminal hands. To this end the Commission will propose legislation in 2011 to strengthen the EU legal framework11 on confiscation, in particular to allow more third-party confiscation12 and extended confiscation13 and to facilitate mutual recognition of non-conviction-based14 confiscation orders between Member States. Member States must15 by 2014 establish Asset Recovery Offices equipped with the necessary resources, powers and training, and the ability to exchange information. The Commission will develop common indicators by 2013, against which Member States should evaluate the performance of these offices. Moreover, Member States should also by 2014 make the necessary institutional arrangements, for example by creating asset management offices, to ensure that frozen assets do not loose their value before they are eventually confiscated. In parallel, the Commission will in 2013 provide best practice guidance on how to prevent criminal groups from reacquiring confiscated assets. 11 12 13 14 15 EN Framework Decision 2001/500/JHA on money laundering and confiscation. Third party confiscation involves the confiscation of assets that have been transferred by an investigated or convicted person to third parties. Extended confiscation is the ability to confiscate assets which go beyond the direct proceeds of a crime so that there is no need to establish a connection between suspected criminal assets and a specific criminal conduct. Non-conviction based procedures allow to freeze and confiscate asset irrespective of a prior conviction of the owner in a criminal court. Council Decision 2007/845/JHA requires each Member State to set up at least one Asset Recovery Office on its territory. 6 EN