What exactly do you mean by forfeiture?
The process is used as an ancillary order when sentencing a number of offences in the UK. A couple of examples that spring to mind are the forfeiture (and destruction) of drugs when a person is convicted of possession, and the same of knives, guns, etc. when convictions for possession of them are recorded.
On a wider scale there is the Proceeds of Crime Act where goods and/or monies are seized if it can be shown that they were obtained from ill gotten gains.
As far as I know neither of these processes has fallen foul of European law (by which I imagine you mean the European Convention on Human Rights and the associated UK Human Rights Act of 1998.