Parliament accepts bill allowing confiscation of assets without criminal conviction

Parliament on Monday accepted a government-backed bill that would allow authorities to confiscate assets linked to criminal activity in certain circumstances without securing a criminal conviction.

The Proceeds of Crime Bill, submitted on behalf of the government by Fuvahmulah Central MP Ali Fazadhu of the ruling People's National Congress (PNC), was accepted with 56 votes in favour and none against.

Although opposition Maldivian Democratic Party (MDP) MPs criticised provisions of the legislation during the debate, no members voted against accepting the bill.

The legislation has been referred to Parliament's Judiciary Committee for further review.

The bill seeks to establish a legal framework for recovering proceeds of crime, preventing individuals involved in serious criminal offences from benefiting financially from their activities and restricting the use of unlawfully obtained assets.

It proposes procedures for confiscating assets following a criminal conviction, alongside provisions allowing confiscation without a conviction in specified circumstances.

Under the proposed legislation, the Prosecutor General would have the authority to seek civil restraint and forfeiture orders where assets can be established, under the civil standard of proof, to have been obtained through criminal activity.

The bill would also establish procedures for preventing transactions involving proceeds of crime, managing seized and confiscated assets, recovering assets held overseas and assisting foreign authorities with asset recovery involving persons in the Maldives.

Its provisions would extend to offences committed before the legislation comes into force, including cases where convictions have already been secured.

One of the proposed measures would allow law enforcement agencies to obtain court orders to monitor accounts held at financial institutions where there are reasonable grounds to believe they contain proceeds of crime that may be subject to confiscation.

Such monitoring could be authorised without informing the account holder, with orders issued for periods of up to three months.

The bill would prohibit the disclosure of information about the existence or execution of such orders to anyone other than authorised law enforcement personnel.

Individuals and financial institutions found to have breached these confidentiality provisions could face court-imposed fines ranging from MVR 100,000 to MVR 1 million.

The legislation also establishes procedures for selling assets confiscated by the state, including through competitive bidding and public auctions.

However, it would prohibit the sale of confiscated assets to their former owners or members of their families.

The bill further requires the establishment of an Asset Recovery Fund within two months of the legislation taking effect.

The fund would be used to support crime prevention, compensate victims and cover expenses associated with managing recovered assets.

The proposed law covers proceeds derived from a range of criminal offences, including money laundering, terrorism and terrorism financing, murder, drug trafficking, human trafficking, sexual offences involving exploitation, arms trafficking, counterfeiting, insider trading, market manipulation, corruption and organised crime.

It also covers tax evasion offences involving amounts exceeding MVR 500,000.

Offences involving robbery, theft, fraud, trafficking in stolen property and smuggling would fall within its scope where the amount involved exceeds MVR 100,000.

Other offences classified as serious crimes under Maldivian law would also be covered where they generate proceeds of crime.

The bill will now undergo committee scrutiny before returning to Parliament for further consideration. Its provisions will not become law unless the legislation completes the parliamentary process and receives presidential ratification.