Opposition MP Claudio Grech has urged the government to introduce unexplained wealth orders to give the authorities more powers to seize assets potentially financed by criminal activities.

While offering its support to the proceeds-of-crime bill being discussed in parliament, Grech told Times of Malta that the bill missed a fundamental piece of the puzzle, without which no meaningful change could be realised.

Recently introduced in the UK, unexplained wealth orders force an individual to reveal the sources of their unexplained wealth, be it a high-end property or a luxury yacht.  People who fail to give a plausible explanation risk having those assets seized.

Grech said he had made a strong appeal to the government to reconsider its position on this tool and introduce it as an integral part of the bill.

Assets could be seized before a criminal conviction is handed down

MaltaToday reported in July that an effort to introduce unexplained wealth orders had been placed on the backburner after hitting a snag in cabinet.

Grech insisted that the changes in legislation should not merely be geared towards passing the Moneyval test or aligning with the Venice Commission’s requirement.

“There should be instruments of change which contribute to the common good of our society,” the MP said.

Malta faces a damaging grey-listing if an international anti-money laundering body rules its efforts to combat financial crime are not up to scratch.

The bill currently being debated in parliament does boost the authorities’ powers to seize criminal assets, but only in particular circumstances.

Justice Minister Edward Zammit Lewis has emphasised how the bill will allow the authorities to seize assets before a criminal conviction is handed down.  The Asset Recovery Bureau will be empowered to file proceedings for asset confiscations in the civil courts.

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