Bill proposes seizure of criminal assets even without conviction in exceptional cases

Parliament on Tuesday debated a government bill that would establish a legal framework for freezing, confiscating and managing assets obtained through serious criminal offences, including provisions allowing assets to be seized without a criminal conviction in certain circumstances.

The Proceeds of Crime Bill was sponsored by ruling People’s National Congress MP for Fuvahmulah Central Ali Fazad. Parliament concluded debate on the bill on Tuesday but did not decide whether to accept it for further consideration.

The bill is intended to prevent people involved in serious crimes from using financial gains obtained through criminal activity and to confiscate unlawfully acquired assets, limiting opportunities to generate further benefits from them.

It sets out six main areas for the proposed framework: confiscating proceeds of crime following a conviction; allowing confiscation without a conviction in exceptional circumstances; preventing dealings involving criminal proceeds; establishing procedures for managing frozen and confiscated assets; setting procedures for recovering assets held abroad; and providing assistance to foreign countries seeking to freeze or confiscate criminal assets held in the Maldives.

Under the bill, investigative authorities would be required to follow procedures established by law and the Prosecutor General when freezing and confiscating assets.

The legislation would also apply to offences committed before the law comes into force. It provides for assets linked to offences committed or proven before the commencement of the law to be confiscated.

One of the bill’s provisions would allow the Prosecutor General to seek civil restraint or civil forfeiture orders where an asset can be established, under the civil standard of proof, to be proceeds of crime even when there has been no criminal conviction.

The bill would also introduce powers to monitor financial accounts without informing the account holder. Where law enforcement authorities have reasonable grounds to believe that an account contains proceeds of crime that could be subject to confiscation, they could obtain a court order allowing the account to be monitored without the knowledge of its owner.

Such an order could remain in force for up to three months.

The bill prohibits disclosure of information about the existence or enforcement of such an order to anyone other than law enforcement authorities where the court has authorised monitoring without notice to the account holder.

A person or bank that unlawfully discloses the information could be fined between MVR 100,000 and MVR 1 million by a court.

The bill also sets out procedures for disposing of confiscated assets. Property could be sold through bidding or auction, but the person from whom the property was confiscated and members of their family would be prohibited from purchasing it.

A Recovery Assets Fund would also be established within two months of the law taking effect. Money and other proceeds recovered under the legislation would be used to support crime prevention, compensate victims and meet expenses related to asset recovery.

The bill would further require the President to establish an Asset Management Authority within 30 days of the law coming into force. The authority would operate under the Ministry of Finance as an independent institution accountable to Parliament.

Its responsibilities would include safeguarding, valuing and registering assets subject to confiscation, as well as administering compensation to victims.

The bill covers proceeds and property connected to a range of serious offences. These include property obtained through crime or used to commit an offence, money laundering, terrorism and terrorism financing, murder, drug and human trafficking, sexual offences involving exploitation, arms trafficking, counterfeiting currency and valuables, insider trading, market manipulation, corruption and organised serious crime.

It would also apply to tax evasion offences involving more than MVR 500,000.

Fraud, theft, breach of trust, trafficking in stolen property, smuggling and similar offences involving more than MVR 100,000 would also fall within the proposed framework, along with any offence classified as a serious criminal offence where property or financial benefit can be obtained through its commission.