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Provision of Expenses and Forfeiture of Property Under Money Laundering Act

Lesotho’s Money Laundering and Proceeds of Crime Act, 2008 aims to combat money laundering by providing for the identification, tracing, freezing, seizure, and confiscation of unlawful proceeds from serious crimes. The act also requires accountable institutions to take prudential measures to prevent money laundering.

Provision of Expenses

The act provides for the provision of expenses related to the preservation and forfeiture of property. Under Section 95, the maximum legal expenses that can be met from preserved property are outlined.

Forfeiture of Property

Division 3 of the act deals with the forfeiture of property. The process is outlined as follows:

  • Application Process: Section 97 outlines the application process for a forfeiture order.
  • Procedure for Making an Order: Section 98 sets out the procedure for making such an order.
  • Notice to Interested Parties: If a person is unable to provide notice to interested parties, they may apply to notify them under Section 99.

Additionally:

  • Exclusion of Interest: Section 100 excludes interest in property that has been forfeited.
  • Automatic Forfeiture: Section 101 provides for the automatic forfeiture of property if the owner fails to comply with a court order.
  • Excluding Interests in Forfeited Property: Section 102 outlines the process for excluding interests in forfeited property.
  • Effect of Forfeiture Order on Third Parties: Section 103 sets out the effect of a forfeiture order on third parties.

General Provisions

Division 4 of the act contains general provisions relating to the preservation and forfeiture of property. These include:

  • Multiple Orders: Section 105 allows for multiple orders to be made in relation to the same offence.
  • Deceased Estates: Section 106 applies the part to deceased estates.
  • Death of a Joint Owner: Section 107 deals with the effect of the death of a joint owner of preserved property.

Criminal Asset Recovery Fund

Division 5 of the act establishes a Criminal Assets Recovery “Fund” under Section 109. The fund’s finances are outlined in Section 110, which provides for the financial management and accountability of the fund.

Miscellaneous Provisions

Part VI of the act contains miscellaneous provisions, including:

  • Regulations: Section 111
  • Amendments to List of Accountable Institutions: Section 112
  • General Penalty Provision: Section 113

The Money Laundering and Proceeds of Crime Act, 2008 is an important tool in combating money laundering and recovering the proceeds of crime in Lesotho. The provisions outlined above provide a framework for the preservation and forfeiture of property related to serious crimes, and help to ensure that the financial system remains stable and secure.