Proposed Bill for State to Secretly Monitor Accounts and Seize Illicit Assets

Parliament has begun debating government-backed legislation that would grant law enforcement powers to covertly monitor bank accounts without notifying account holders and seize criminal assets without a prior conviction.

The bill, submitted by Ali Fazaad, MP for Central Fuvahmulah and a member of the ruling People’s National Congress (PNC), was debated in the parliament today. Lawmakers did not vote on whether to accept the bill for consideration.

The proposed legislation seeks to establish procedures for recovering assets obtained through crime and prevent offenders from benefiting from the proceeds of unlawful activity.

Among its provisions, the bill would allow the state to confiscate assets following a criminal conviction and introduce civil forfeiture proceedings in exceptional circumstances where property is established as the proceeds of crime under the civil standard of proof.

It would also establish procedures for restraining and seizing assets, including property connected to foreign jurisdictions, and provide a framework for assisting other countries in freezing and confiscating illicit assets held in the Maldives.

Under the proposed civil forfeiture system, the Prosecutor General would be able to apply for orders to restrain or confiscate property without a criminal conviction if the property is proven to be proceeds of crime under the applicable civil standard.

The bill would also allow law enforcement agencies to seek court orders to monitor bank accounts covertly where there are reasonable grounds to believe an account contains assets subject to forfeiture.

Such monitoring orders could remain in force for up to three months without the account holder being notified.

The legislation proposes fines ranging from MVR 100,000 to MVR 1 million for individuals or financial institutions that unlawfully disclose information about the existence or execution of a covert monitoring order.

The proposed law would establish rules for managing property that has been restrained or forfeited by the state. Forfeited assets could be sold through public tenders or auctions, but the bill would prohibit their sale to the former owner or members of their family.

The legislation also proposes the creation of an Asset Recovery Fund within two months of the law coming into effect.

According to the bill, the fund would use proceeds from forfeited assets to support efforts to combat crime, compensate victims and meet administrative expenses associated with asset recovery.

An Asset Management Authority would also be established under the Ministry of Finance within 30 days of the law’s enactment. The proposed authority would be responsible for managing, valuing and cataloguing assets seized by the state and administering compensation for victims.

The authority would operate independently while remaining accountable to Parliament.

The bill would apply retrospectively, allowing authorities to restrain or confiscate assets connected to offences committed before the legislation comes into force. It would also cover property associated with convictions handed down before enactment of the proposed law.

The proposed framework would apply to assets derived from or used in a wide range of serious offences.

These include money laundering, terrorism and terrorism financing, murder, drug and human trafficking, sexual offences involving exploitation, arms trafficking, counterfeiting, insider trading, market manipulation, corruption and organised crime.

The bill would also cover certain cases of tax evasion involving MVR 500,000 or more, as well as robbery, theft, embezzlement, trafficking in stolen goods and smuggling involving more than MVR 100,000.

It would additionally apply to assets acquired through other offences classified as serious crimes under Maldivian law.