MMA to collect funds confiscated under Prevention of Money Laundering and Financing of Terrorism Act

Maldives Monetary Authority (MMA) has formulated the regulations on funds and property confiscated under the Prevention of Money Laundering and Financing of Terrorism Act, mandating an account to be set up at MMA to collect such funds.

The regulations on funds and property confiscated under the Prevention of Money Laundering and Financing of Terrorism Act were published in the Government Gazette on August 12. As per the regulations, the confiscated funds, as well as any income from confiscated property, has to be deposited to the designated account set up at MMA upon a confiscation order by the court.

The regulations state confiscated funds and property must be maintained under the supervision of the relevant state institution or authority. All funds and property must be maintained such that its value does not decrease significantly over time. The regulations mandate a benefit or income to be generated from seized property.

The regulations also describe situations where confiscated property can be disposed. In this regard, property which can be used to commit another criminal offence, property which is illegal to be used or possessed and counterfeit property can be disposed.

Furthermore, the relevant institution is provided the authority to sell or lease confiscated property in accordance to the regulations. As such, property worth over USD 6,500 has to be sold in a public auction.

As per the regulations, a period of 30 days must be provided following the confiscation order to allow any third parties acting in good faith, which may hold rights over the confiscated funds or property, to lodge an appeal. The 30-day period will begin once the court order is published in the gazette.

Furthermore, the regulations state the relevant institution or authority must maintain the records and accounts of confiscated property and funds. An audit must be conducted on the confiscated property and funds by an external auditor at the end of every calendar year, and the audit report must be published within four months after the end of the year.