Asset forfeiture bill allows seizure without conviction if suspect absconds
A government-sponsored bill introduced in Parliament on Wednesday would allow the state to seek forfeiture of proceeds of crime without a criminal conviction in cases where a suspect dies, absconds or cannot be prosecuted.
The first reading of the asset forfeiture bill was held during Wednesday’s sitting of the People’s Majlis. The legislation was introduced on behalf of the government by Fuvahmulah Central MP Ali Fazad.
President Dr Mohamed Muizzu announced on Tuesday that the government had submitted the bill to Parliament, saying it was intended to establish a framework for recovering assets obtained through crime.
Chapter Six of the bill, covering Sections 74 to 91, sets out procedures for non-conviction-based civil forfeiture.
Under the proposed law, a court may order the forfeiture of property using the civil standard of proof without the person first being convicted of a criminal offence. However, the procedure would be available only in specified circumstances.
These include cases where the suspect has died, fled or absconded, or where prosecution is not possible.
Applications for non-conviction-based forfeiture must be submitted to the High Court.
In considering an application, the court must assess whether the state had previously obtained a pre-trial freezing or restraint order that remains in effect and whether a law enforcement investigation found that the suspect obtained a benefit, directly or indirectly, from an offence or related criminal conduct.
The court may also consider whether the respondent has been able to establish that the property was acquired through lawful means and whether the property can be identified as proceeds of crime.
PG Office to seek freezing orders
The bill also gives the Prosecutor General’s Office responsibility for applying to the High Court for restraint or freezing orders before a criminal conviction.
Such applications must be accompanied by an affidavit from an authorised officer of the investigating agency.
Under the bill, restraint orders may also cover property that a suspect acquires after the order is issued.
A person who violates a restraint order could be fined between MVR 200,000 and MVR 5 million at the discretion of the court.
Assets subject to restraint orders would be managed by an Asset Management Authority to be established under the legislation. The authority would manage the property in accordance with court orders and conditions.
Offences covered by forfeiture law
The bill identifies offences for which asset forfeiture provisions may apply.
These include corruption, money laundering, terrorism and terrorism financing, homicide, human trafficking, drug trafficking and arms trafficking.
The legislation also covers sexual offences involving exploitation, counterfeiting of currency or valuables, market manipulation and organised crime.
Tax evasion would fall within the scope of the law where the amount involved is MVR 500,000 or more.
Robbery, theft, embezzlement, smuggling and trafficking in stolen property would be covered where the amount involved is at least MVR 100,000.
The forfeiture provisions would also apply to any offence classified under law as a serious criminal offence.
