Financial Crime World

Mauritius Takes a Major Step Forward in Asset Forfeiture Laws

Mauritius has made a significant move to combat corruption and transnational crime by introducing the Asset Recovery Act 2011. This new legislation aims to forfeit proceeds of crimes, whether committed against the state or an individual, with the goal of compensating victims and acting as a deterrent for unlawful activities.

Replacing Outdated Legislation

The Asset Recovery Act replaces the outdated Section 45 of the Dangerous Drugs Act, which was criticized for being too restrictive in its application. The new law enables assets suspected of being linked to drug trafficking or other serious crimes to be seized and forfeited, regardless of whether they are held in the name of the convicted person.

Definition of Asset Recovery

The Asset Recovery Act defines two types of recovery:

  • Conviction-based asset recovery: This type requires a criminal trial and conviction of the individual.
  • Civil asset recovery: This type allows for the seizure of assets without needing to prove that the individual is involved in illegal activities.

Enforcement Authority

The Enforcement Authority, established under Part II of the Act, will be responsible for enforcing the provisions of the law. The authority will comprise law officers and law enforcement agents who will investigate and recover assets suspected of being linked to crime.

Key Features of the Act

  • Seizure of assets before conviction: The ability to seize assets before a conviction is obtained.
  • Power to trace and recover assets: The power to trace and recover assets that have been disposed of since they were used or obtained in connection with an offence.
  • Ancillary orders: Production orders, search and seizure orders, disclosure orders, customer information orders, and account monitoring orders.

Additional Provisions

  • Compensation Orders: The Supreme Court may grant compensation orders in the interests of justice.
  • Immunity for Enforcement Authority: The Enforcement Authority and its agents have immunity from legal action for acts done in good faith.
  • Offense for “tipping off” individuals: It is an offense for financial institutions to provide information about customer information or account monitoring orders.

Implementation Plan

The government has announced that the Asset Recovery Act will come into full operation in January 2012, following a period of recruitment of staff, allocation of office space, and capacity building. The authorities are also planning to establish international cooperation agreements with other countries to share information and collaborate on asset recovery efforts.

Conclusion

With the introduction of the Asset Recovery Act, Mauritius is taking a significant step forward in its fight against corruption and transnational crime, demonstrating its commitment to protecting the integrity of its financial system.