Asset Confiscation Bill Will Close Loopholes for Major Criminal Offenders, says President

President Dr Mohamed Muizzu has said a bill submitted by the government to allow the state confiscation of assets acquired through serious criminal activity will close existing legal gaps that prevent authorities from recovering illicit wealth.

In a post on social media, Muizzu said one of the main objectives of the legislation is to establish a legal framework for confiscating assets obtained through major crimes and prevent offenders from continuing to benefit financially from them.

The government submitted the Bill on the Confiscation of Illicitly Acquired Assets to Parliament yesterday on behalf of the government through Fuvahmulah Medhu MP Ali Fazad. The proposed law would allow authorities to confiscate assets acquired through criminal activity, as well as assets used in the commission of certain offences.

ކުށް ކޮށްގެން ހޯދާ މުދަލާގުޅޭ ބިލެއް އެކުލަވާލައި ސަރުކާރުގެ ފަރާތުން ރައްޔިތުންގެ މަޖިލީހަށް މިއަދު ވާނީ ފޮނުވާފައި.

މި ބިލު ހުށަހެޅުމުގެ މައިގަނޑު އެއް ބޭނުމަކީ، ޖިނާއީ ބޮޑެތި ކުށްތައް ކުރާ ފަރާތްތަކުން ނުޙައްޤުން ހޯދާ މުދާ އެ ފަރާތްތަކުގެ ކިބައިން ނަގައި، އެ މުދަލުން އިތުރު…

— Dr Mohamed Muizzu (@MMuizzu) August 25, 2026

The legislation covers offences including money laundering, terrorism-related crimes, murder, drug trafficking, human and arms trafficking, corruption, counterfeiting, organised crime and sexual offences involving exploitation.

It would also apply to tax evasion involving more than MVR 500,000 and offences including extortion, theft, embezzlement and goods smuggling involving amounts exceeding MVR 100,000. Other offences classified as serious crimes through which assets can be acquired would also fall within the scope of the proposed law.

Under the bill, authorities could take action in relation to offences committed abroad or before the legislation comes into force. It also provides for the confiscation of relevant assets in certain circumstances regardless of whether the accused is convicted or acquitted, subject to the procedures set out in the law.

The proposed legislation would require the establishment of an Asset Management Authority within 30 days of the law coming into force to manage, register and value assets confiscated by the state.

A Recovered Asset Fund would also be established within 60 days to support expenses related to crime prevention and compensation for victims following the recovery of illicit assets.

Muizzu said the proposed law would prevent major criminal offenders from retaining financial benefits obtained through illegal activities while addressing the legal challenges currently faced by the state in confiscating assets linked to serious crimes.