Court Gives Green Light to Seize Properties Linked to Specified Entities

The court has granted the Attorney-General the power to seize properties linked to specified entities in a move aimed at curbing the flow of illicit funds.

Key Provisions

• The direction must specify the property concerned and may be subject to conditions.
• A person who has custody or control of property mentioned in the direction is required to allow the Administrator to take custody and control of the property in accordance with the direction.
• Individuals or entities found to have connections with specified entities can no longer dictate how their properties are managed.

Notice Requirements

• The court must provide notice of the making of a direction under section 16 to:
  • The person who owns or controls the property, if practicable
  • Any other person whom the Attorney-General thinks may have an interest in the property
• Failure to comply with this requirement does not affect the validity of the direction.

Varying, Revoking, or Expiring Directions

• The Attorney-General can apply to the court to vary, revoke, or expire a direction made under section 16.
• In such cases:
  • The person who owns or controls the property must provide reasonable written notice of their application to the Attorney-General
  • The court must hear from them before making a decision
• If the court decides that there are no reasonable grounds to revoke the direction, it may refuse the application.

Appeal Process

• The law provides for an appeal process, allowing:
  • The Attorney-General or a person whose property is subject to a direction to appeal against a decision made by the court

Additional Provisions

• Sections of the Proceeds of Crime Act relating to the management of property of specified entities will apply to properties that are subject to directions under section 16.
• This includes provisions related to:
  • Restraining orders
  • Undertakings by the Attorney-General
  • Registration of orders

Relief for Third Parties

• The law allows third parties who claim an interest in property subject to a direction to apply to the court for relief.
• The court may grant relief by declaring the nature, extent, and value of the person’s interest in the property, as well as directing the Administrator to transfer the interest or pay a specified amount to the person.

Impact

The move is seen as a major victory in the fight against money laundering and other financial crimes. It demonstrates the government’s commitment to ensuring that properties linked to specified entities are not used to further illegal activities.