Government Submits Bill Allowing State Confiscation of Illicitly Acquired Assets

The government has submitted a bill to Parliament that would establish a legal framework for the state to confiscate assets acquired through criminal activity, including in certain cases where a suspect has not been convicted.

The Bill on the Confiscation of Illicitly Acquired Assets was introduced on behalf of the government by Fuvahmulah Medhu MP Ali Fazad. The proposed legislation aims to prevent individuals involved in serious crimes from benefiting from proceeds obtained through illegal activities and to allow the state to confiscate assets acquired through, or used in, criminal offences.

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The bill covers a range of 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, as well as extortion, theft, embezzlement and goods smuggling involving amounts exceeding MVR 100,000. Other offences classified under Maldivian law as serious crimes through which assets can be acquired would also fall within the scope of the legislation.

Under the proposed law, authorities could take action in relation to offences committed abroad or before the legislation comes into force. The bill also provides for the confiscation of relevant assets regardless of whether the accused person is ultimately convicted or acquitted, subject to the procedures established under the proposed law.

The legislation would require the President to establish an Asset Management Authority within 30 days of the law coming into force. The authority would operate independently under the Ministry of Finance and remain accountable to Parliament.

The bill further requires the establishment of a Recovered Asset Fund within 60 days of the law taking effect. The fund would be used to manage expenses related to crime prevention and compensation for victims following the recovery and confiscation of criminal assets.