The Government of Armenia has introduced a Draft Law on the Forfeiture of Assets Derived from Illicit Activity which sets a minimum threshold of 50 million AMD for forfeiture to take place. Varuzhan Hoktanyan, Programs Manager at Transparency International Anticorruption Center (TIAC), has pointed out several shortcomings in the draft legislation.

“What are the authorities going to do when the individual suspected of wrongdoing demands evidence as to how his or her assets are deemed illegal,” Varuzhan Hoktanyan asks. “A question like “Where did you get that money” will bring up another problem because it is likely that they will be able to come up with sufficient documents proving those sums are legal,” he adds.

Another issue is what we do with seized real estate. Are they going to be sold? Will there be buyers for them, will they turn into nursing homes or orphanages? What is going to happen to them? These are all questions Varuzhan Hoktanyan believes need proper answers.

The TI Armenia expert also thinks it’s concerning that the proposed legislation will mainly apply only to assets acquired during the last ten years. “What about those who enriched themselves in the 90’s? How fair is that? I remember how privatization of state property in 1990’s was done,” says Hoktanyan who also adds that many have started selling their real estate already, and sometimes the transactions are carried out through third parties. Another issue here is that if someone has legally acquired an asset derived from illegal activity, then that individual bears no liability whatsoever.

Nevertheless, this legislation is a direct threat to wealthy former state officials and people affiliated with them who have luxurious villas in an area of Yerevan known as Monument.

Original source: Factor