European Union has adopted certain framework decisions regarding co-operation between the asset recovery offices of the member countries on handling confiscation of crime-related properties. It asked the member countries to set up a national asset recovery office and made a judiciary authority which should be highly competent in dealing with confiscation or forfeiture of proceeds of crime thereby, curb the working of Mafia system or criminal deeds. They have put forward programmes to compensate the crime victims and promote social re- use of the criminal assets and even used for funding the asset recovery programmes. This paper tries to give an overview on the legal and institutional frame work given by European Union. The policy suggestions are helpful to frame policies for countries on their way to sustainable development.