Rafaela Dimitriadi
Legal expert Simos Angelides explained the legal framework that allows the Republic of Cyprus to confiscate assets connected to alleged criminal activity, even in cases where there has been no criminal conviction. He outlined the court procedures involved and explained how the state ultimately benefits from recovered assets.
Speaking to Kathimerini in relation to the recent confiscation of Malaysian financier Jho Low’s €6 million villa in Ayia Napa without a conviction, Angelides said the legal basis lies in Cyprus’ 2007 Law on the Prevention and Suppression of Money Laundering Activities (Law 188(I)/2007), which implements a series of European Union directives.
In cases involving the confiscation of property, authorities must calculate the amount of money believed to have been obtained through illegal activities. If those illegal proceeds are equal to or lower than the value of the property, the amount ordered to be recovered or confiscated corresponds to the total value of those unlawful proceeds.
Articles 32 and 33 of the Law
Angelides explained that under Article 32, the court can, following a request by the Attorney General, issue an order freezing the assets of a person who cannot be located.
The freezing order remains valid for six months and may be extended for up to one year. If, during this period, the suspect does not appear to challenge the order, the court can proceed with a confiscation order.
This is provided for under Article 33, which allows for the final and permanent confiscation of assets belonging to an absent person.
The process can move forward if the court is convinced there are reasonable grounds to believe that the suspect may have committed a criminal offense and that the assets could be transferred, converted, or moved outside Cyprus’ jurisdiction in an attempt to hide or conceal them.
The State Must Make Reasonable Efforts to Contact the Suspect
Angelides stressed that the law also protects the rights of the affected person.
Under Article 43KA, the court must instruct authorities to make reasonable efforts to inform the individual that an order has been issued, ensuring they have the opportunity to defend themselves.
Notification can be made by post or electronically where possible. If the person cannot be found despite efforts to locate them, the law allows the notice to be published on the official website of the Unit for Combating Money Laundering (MOKAS) for 30 consecutive days.
If there is still no response after those 30 days, authorities may apply to the court to register and enforce the confiscation order. That enforcement order remains valid for three years and can be extended.
The Jho Low Case
In the case of Jho Low, the process was carried out before the Nicosia District Court. Following an application by the Republic’s Legal Service and MOKAS, and with the agreement of lawyers representing Low, the court issued the confiscation order without a criminal conviction.
What Money Does Cyprus Receive?
According to Angelides, the distribution of money recovered through confiscation depends on the circumstances and follows the procedures set out under Law 188(I)/2007.
If the value of the confiscated property is less than €10,000, the entire amount remains with the Republic of Cyprus. If it exceeds €10,000, generally 50% goes to Cyprus, and the remaining 50% is returned to the country that issued the original confiscation order.
However, in Jho Low’s case, because the confiscation order was issued by the Nicosia District Court itself, the entire €6 million Ayia Napa villa becomes the property of the Republic of Cyprus.
