Money Laundering Prevention Act 2064

Chapter-6 Provisions on Investigation and Inquiry

Section 18: Order for Freezing Assets
1) The investigation officer may freeze or seize the following property or instrumentality or property or instrumentality suspected of being related with such property or instrumentality of anyone in the course of the investigation, regardless of persons whoever owns, possesses, entitles, or has any interest in:
(a) Laundered property,
(b) Instrumentality used or intended to be used in the commission of the offence of money laundering,
(c) Property related with the offence of terrorist financing,
(d) Property used or intended to be used in the offence of terrorist financing, or property used or intended to be used or allocated for the use in a terrorist act or by (for the use of) individual terrorist, terrorist group or terrorist organisation,
(e) Instrumentality used or intended to be used in the offence of terrorist financing.
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1A) The court’s permission shall be obtained if any property or instrument pursuant to sub-section (1) is held or controlled for more than one year.
2) The investigation officer shall freeze or seize the property of the corresponding value of the person suspected of engaged in
Money Laundering or Terrorist Financing
if it is not possible to freeze or seize the property or instrumentality as stipulated in sub-section (1) due to the disposal, concealment, use or consumption of such proceeds or instrumentality or by any other reason that turns off to freeze or seize.
3) The investigation officer may apply the following measures while freezing or seizing the property or instrumentality pursuant to sub-section (1) or (2) :
(a) To self-seize such property or instrument or through the concerned government agency,
(b) To order the concerned agency to freeze such property or instrumentality ex-part without prior notice to the related person.
4) Notwithstanding whatever is written in sub-section (1), the investigation officer may issue a freezing order against the property of the person under the investigation of
Money Laundering or Terrorist Financing
who does not present before him within the time given or as delivered pursuant section 40 till such date such person presents oneself.
5) The concerned agency or institution shall immediately freeze if it is asked in writing to do so pursuant to freeze pursuant to subsection clause (b) of sub-section (3) or (4) in such a way that such property or instrumentality could not be transferred, mortgaged, sold, distributed, transacted or taken any benefit by anyone.
6) The investigation officer shall give prior information to the Chief before giving an order to freeze or seize the property or instrumentality pursuant to subsection (3) or (4).
Provided that if such property or instrumentality is required to be frozen or seized right away, the investigation officer should inform the Chief as soon as possible after such freezing or seizing.
7) According to this section, the investigation officer shall give notice of freezing or seizing of the property to the person whose property or instrumentality is frozen within 3 days of such action.
8) A person who is dissatisfied by the act of freezing or seizing made pursuant to this section may submit a complaint to the court prescribed pursuant to subsection (2) of section 22 for the release of such property or instrumentality.
9) The court may, upon the receipt of the complaint pursuant to subsection (8) and if the property or instrumentality frozen or seized pursuant to sub-section (1) or (4) is found to be belonging to the complainant, release such property or instrumentality if it finds the following circumstances:
(a) If the complainant is not found to be involved in any offence of money laundering or terrorist financing,
(b) If it is found that such property or instrumentality is not related with the offence of money laundering or terrorist financing or there is no ground to believe so, and
(c) If the property or instrumentality is not found to be related to another offence committed by the complainant.
10) Notwithstanding whatever is written in the prevailing law, the investigation officer shall be vested with powers to prevent or void any contractual or other liabilities going to be created or created by any person that prejudices in the capacity of freezing, seizing or confiscating the property and instrument that is subject to confiscation pursuant to section 34.
11) The investigation officer shall submit a report of any freezing or seizing of the property made pursuant to this section to the person to the court within 7 days of such action.
12) If the report is received in accordance with sub-section (11), the officer investigating the case may give necessary and appropriate orders.
13) Any other arrangement relating to the custody or control of property or means pursuant to this section shall be as prescribed.
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Amendment to the Prevention of Money Laundering and Promotion of Business Environment Act, 2080.