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Market Value of Property in Limelight as Samoa Tackles Money Laundering

In a bid to combat money laundering, Samoa’s Proceeds of Crime Act 2007 is set to scrutinize the market value of property and consideration provided by transferees.

Scrutiny of Gifts Made by Convicted Individuals

According to Section 10 of the Act, gifts made by individuals convicted or charged with serious offenses will be subject to review. A “serious offense” is defined as one that is committed after the commission of another serious offense, or if multiple offenses are committed, the earliest of those offenses. The court has the discretion to take such gifts into account in all circumstances.

Money Laundering Offenses

Section 11 of the Act criminalizes money laundering offenses, which include:

  • Engaging in transactions involving property derived from proceeds of crime
  • Acquiring or possessing such property
  • Concealing its true nature or origin

The maximum penalty for money laundering is a fine not exceeding 1,000 penalty units or imprisonment for up to seven years, or both. In cases where the offense is committed by a body of persons, individuals acting in an official capacity may also be held liable unless they can prove that the offense was committed without their knowledge, consent, or connivance.

Confiscation Measures

The Act also provides for confiscation measures, including:

  • Forfeiture orders
  • Pecuniary penalty orders

Section 14 allows the Attorney-General to apply for such orders against tainted property or benefits derived from serious offenses. The market value of property is likely to play a crucial role in these confiscation proceedings, as the court will need to determine the extent to which the property is linked to criminal activity.

Notice Requirements

In a significant development, Section 15 requires the Attorney-General to provide reasonable written notice of an application for a forfeiture order to the convicted person and any other relevant parties.

Conclusion

As Samoa continues its efforts to combat money laundering, the market value of property is set to take center stage in the country’s legal system.