A bill on proceeds of crime has been submitted allowing property to be seized by the state if proven on a civil standard to be derived from crime, even if the suspect is not convicted of a criminal offense, along with provisions enabling the freezing of assets located outside the Maldives.
President Dr. Mohamed Muizzu stated in a post on X today that this bill has been forwarded to the parliament on behalf of the government. In that post, the President said that one of the main objectives of the bill is to introduce a legal framework regarding the forfeiture of proceeds of crime to the state, in order to seize illegally acquired property from perpetrators of serious criminal offenses and block avenues for deriving further benefits from such assets.
Although the parliament has not made this bill public so far, "Mihaaru News" understands that the bill sets out standards for identifying proceeds of crime and means used to commit crimes, circumstances under which such property can be seized by the state, and general principles to be followed in this regard.
The bill also includes procedures regarding measures to be taken to identify proceeds of crime, as well as temporary measures to freeze such property. Among these are account monitoring orders, production orders, and account freezing orders.
A monitoring order is an order issued to inspect and monitor an account at a financial institution to obtain information regarding funds that can be seized by the state. A production order is an order issued to direct a financial institution or another relevant party to disclose information regarding property that can be seized by the state.
According to the bill, an account freezing order is an order issued to prevent any transactions involving funds at a financial institution that can be seized by the state. Rules regarding these orders are detailed in the bill.
The bill sent by the government outlines principles for seizing proceeds of crime by the state upon conviction. As such, the bill states that restraint orders and forfeiture orders can be issued in such circumstances.
A restraint order is an order issued to freeze proceeds of crime. A forfeiture order is an order issued to seize property for the state. Rules regarding seeking, issuing, enforcing, amending, and revoking these two orders, as well as other related matters, are contained in the bill.
The bill also establishes exceptional circumstances and related principles under which property can be seized for the state even in the absence of a conviction, provided that the property is proven on a civil standard to be proceeds of crime. These include civil restraint orders and civil forfeiture orders.
Rules regarding the custody, management, and disposal of frozen and state-seized proceeds of crime are also set out in the bill.
Among these:
- Asset Management Authority: Establishing an Asset Management Authority operating under the Ministry of Finance to execute responsibilities related to the custody, management, and disposal of frozen and state-seized proceeds of crime, as well as defining the authority's responsibilities.
- Property Custody, Management, and Disposal: Principles regarding the safe management and custody of frozen and state-seized property, circumstances under which such property can be disposed of, and obligations of relevant parties.
- Recovered Assets Fund: Rules regarding a special fund to be established to prevent crime, provide compensation to victims of crime, and manage related expenses after proceeds of crime are seized for the state.
Additionally, the bill sets out principles for establishing international assistance and cooperation. Among these are procedures for freezing and seizing proceeds of crime located outside the Maldives through foreign countries.
The bill also includes procedures for providing assistance to foreign countries in freezing and seizing proceeds of crime belonging to parties from those countries located within the Maldives.
Furthermore, procedures to be followed when returning property in the Maldives seized for a foreign country under an international agreement, as well as bringing Maldivian property located in foreign countries back to the Maldives, are included in the bill.
