The Role of the ARB

As the asset-recovery office for the Maltese Islands, our primary objective is to develop and facilitate the techniques used in the identification and tracing of assets, which will lead to an increased number of confiscations.

To this effect, the Asset Recovery Bureau looks forward to working with all registered institutions in order to facilitate operational cooperation — by investing in new techniques while adopting permissible simplification measures, and by exchanging best practices on the identification and tracing of criminal assets.

The identification, tracing, freezing, confiscation and recovery of assets is an effective way to tackle crime and to prevent its proceeds from being re-invested in the licit economy and used for further criminal activities. From the European Union's perspective, substantial efforts have taken place in this area — most notably the establishment of Asset Recovery Offices across the EU Member States and mutual cooperation amongst these offices.

The recovery lifecycle

The Bureau's work follows four connected stages, each governed by statutory powers and judicial oversight.

Establishment of the Bureau

The Asset Recovery Bureau Regulations were promulgated by Legal Notice 357 of 2015, made by the Minister responsible for Justice by virtue of the powers conferred under article 700 of the Criminal Code. A number of these provisions were brought into force by Subsidiary Legislation 9.23 on 1 October 2017, to enable the setting up of the necessary structures of the Bureau and to build its capacity to begin functioning.

This stage was reached by mid-2018, and the remaining provisions of Legal Notice 357 of 2015 were brought into force by the Minister responsible for Justice on 20 August 2018 through LN 283 and LN 284 of 2018. As a result, all new cases referred for freezing and confiscation as from 20 August 2018 are managed by the Asset Recovery Bureau.

The Proceeds of Crime Act, 2021

The Proceeds of Crime Act, Chapter 621 of the Laws of Malta was enacted on 12 March 2021. The legislation caters for the identification, tracing, freezing and confiscation of the proceeds of crime, and for the setting up of the Asset Recovery Bureau as a body independent of Government.

The Act vested new powers in the Bureau, principally the ability to take action through preventive measures at different stages of a criminal investigation — including the pre-arraignment, arraignment, judgement and post-judgement stages. It also widened the definition of property contributing directly or indirectly to the proceeds of crime, and redefined a “relevant offence” as any offence under any law (not being of an involuntary nature) liable to imprisonment or detention for a maximum term of at least one year. Notably, even where a confiscation order has been given by the relevant Court, the offender remains liable to compensate any person for damage caused by the offence.

Part II of the Act lays out the functions and powers of the Bureau; Part III establishes a new section of the Civil Court designated as the Civil Court (Asset Recovery Section). Parts IV–V prescribe the procedures of that Court and govern disputes relating to what property constitutes the proceeds of crime. Part VI establishes the function of non-conviction based confiscation, providing for the recovery of property subject to confiscation in appropriate cases.

Issuing & executing authority

Legal Notice 180 of 2021 on the Mutual Recognition of Freezing Orders and Confiscation Orders Regulations designated the Asset Recovery Bureau as the competent issuing and executing authority in terms of EU Regulation 2018/1805 of the European Parliament and of the Council of 14 November 2018. The Regulation enables the swift execution of foreign or local freezing and confiscation orders between Member States without cumbersome formalities.