The Minister for Justice, Mr O'Donoghue, has called for the introduction throughout EU states of legislation similar to the Republic's criminal assets laws to fight organised crime and terrorism.
Meanwhile, it has emerged that European governments, including the British and the Scottish Parliaments, are examining the Irish criminal assets legislation and considering the implementation of similar concepts.
The Deputy Minister for Justice in the Scottish Parliament, Mr Angus MacKay, who visited Dublin yesterday, confirmed that he has initiated examination of the Irish legislation.
Mr McKay said he has had discussions with the British Secretary of State at the Home Office, Mr Charles Clarke, about the legislation.
The Home Office is examining the workings of the Criminal Assets Bureau and the 1996 Proceeds of Crime Act, Mr McKay said.
"We are in the process of setting up a drugs enforcement agency in Scotland with an additional 200 officers."
"We are actively looking at the issue of civil forfeiture powers along with broader drugs polices of rehabilitation, prevention and education," Mr McKay said.
Mr O'Donoghue made his call for EU-wide criminal assets legislation during a conference in north Dublin organised under the EU Justice and Home Affairs' Falcone Programme, which is devising EU responses to the problem of terrorism and organised crime.
The conference was partly organised by the Criminal Assets Bureau, and the head of the CAB, Chief Supt Fachtna Murphy, addressed the European delegates yesterday.
The bureau's Legal Officer, Mr Barry Galvin, addresses the closed conference today. In his opening address yesterday, Mr O'Donoghue said: "I am, of course, aware of the complexities involved and the fact that the introduction of such legislation may pose more problems for some countries than for others.
"Nevertheless, it is my firm belief that until we bite this bullet we will never really get to grips with organised crime."
Mr O'Donoghue added: "We must ensure that there is no hiding place within the Union for organised criminals or for the proceeds of their crimes.
"In that context I know that member-states realise the importance of dealing with the financial aspects of organised crime.
"While we strive to ensure that everything possible is done to prevent and detect organised crime, nevertheless our efforts will come to nothing if we do not strike at the heart of the monster, namely the financial base of these evil groups.
"Vigilance is required by member-states as it is inevitable that some criminals successfully put out of business by organisations such as CAB will attempt to move assets and operations elsewhere.
"If and when this happens it will be important that these proceeds of crime are not untouchable.
"Accordingly, the introduction of similar legislation in all member-states is a course that I strongly recommend."