New Bill Empowers State to Seize Assets Linked to Major Crimes

The Maldivian government has submitted the Asset Recovery Bill to Parliament, a legislative move designed to strip perpetrators of major crimes of their illicit financial gains. Introduced by Ali Fazad, Member of Parliament for Central Fuvahmulah, the bill aims to permanently close avenues for profit derived from criminal activity. Under the proposed framework, the state will have the authority to seize assets acquired through crime as well as property used to facilitate offences. The legislation covers a wide spectrum of serious crimes, including money laundering, terrorism, homicide, and the trafficking of drugs, humans, and weapons. It also targets corruption, sexual exploitation, counterfeiting, and organized crime. Financial thresholds have been established for specific offences. The state may seek confiscation in tax evasion cases exceeding USD 32,425.42. For robbery, theft, embezzlement, or smuggling, the threshold for asset seizure is set at USD 6,485.08, in addition to any property yielded by a major felony. Notably, the bill allows for legal action regardless of whether the offence occurred outside the Maldives or prior to the law's enactment. Furthermore, assets may be seized even if the accused individual has not been convicted, provided the Prosecutor General issues the necessary instructions. To manage these seizures, the executive branch must establish an independent Asset Management Authority under the Ministry of Finance and Public Enterprises within 30 days of the bill becoming law. This authority, accountable to the Majlis (Parliament), will be responsible for registering, valuing, and maintaining confiscated assets, while also processing restitution claims for victims. Additionally, the legislation mandates the creation of a Recovered Asset Fund within 60 days to finance crime prevention initiatives and victim compensation. To address global financial flows, the bill outlines procedures for freezing assets abroad and empowers the Prosecutor General to seek international cooperation. This measure is accompanied by proposed amendments to the Criminal Procedure Act to ensure seamless legal integration.