Authorities seek money laundering charges against Ziyath's family company
The decision followed a joint investigation into the company's alleged involvement in the MMPRC corruption case.
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The Anti-Corruption Commission (ACC) and the Maldives Police Service have decided to refer a case to the Prosecutor General's Office seeking money laundering charges against MHR Trading, a company linked to the family of former Maldives Marketing and Public Relations Corporation (MMPRC) Managing Director Abdulla Ziyath.
The decision followed a joint investigation into the company's alleged involvement in the MMPRC corruption case. The investigation was completed on Wednesday.
According to the findings, part of the state funds generated through the lease of islands and lagoons for tourism development between February 2014 and October 2015 was transferred from SOF Private Limited into bank accounts held by MHR Trading.
Investigators said cheques issued by SOF Private Limited amounting to US$325,000 (MVR 5.01 million) were deposited through several transactions into accounts belonging to MHR Trading and a grocery business operated by the company.
The investigation found that the company sought to present the funds as proceeds from foreign exchange transactions. However, investigators said the company was unable to identify who delivered the cheques or provide evidence showing how the corresponding amount in Maldivian Rufiyaa had been paid.
The investigation also found that US$50,000 (MVR 773,000), paid to MMPRC as the acquisition cost for ADh. Fushidhigga, was deposited directly into MHR Trading's account through the involvement of Ziyath.
According to the ACC and police, the company subsequently used the funds deposited through that cheque.
Investigators also examined communications between Ziyath and the managing director of MHR Trading and concluded there were reasonable grounds to suspect that the company's managing director knew, or should have known, that the funds deposited into the company's accounts were proceeds of crime.
The authorities are seeking charges under Sections 53 and 58 of the Prevention of Money Laundering and Financing of Terrorism Act, covering money laundering and corporate criminal liability.
The ACC and police have also decided to instruct MMPRC to seek recovery of the US$325,000 deposited through SOF Private Limited cheques, the US$50,000 paid for the acquisition of ADh. Fushidhigga, and any profits generated from the use or investment of those funds.
