The Forfeiture of Ownership in Venezuela
On April 28, 2023, the Organic Law of Forfeiture of Ownership was published in the Extraordinary Official Gazette of the Bolivarian Republic of Venezuela N° 6.745.
Objective
This law aims to establish mechanisms to identify, locate, and recover assets related to illicit activities and confiscate ownership rights over them.
Key Aspects
Forfeiture of ownership proceeds independently of criminal prosecution and responsibility, allowing for the confiscation of "presumably" acquired assets resulting from a crime without the need for a prior criminal conviction.
Retroactive application of forfeiture of ownership is permitted, meaning it can be applied to events occurring before the law's entry into force.
The law respects legitimately acquired property rights, protecting the rights of bona fide third parties who have legally acquired the assets.
The action of forfeiture of ownership does not prescribe, meaning there is no time limit for authorities to exercise this action.
A non-exhaustive list of assets subject to confiscation is established, encompassing any asset acquired illicitly.
Confiscated assets may be disposed of by the National Executive or retained for use in administrative activities. Proceeds from the disposal are allocated to fund social protection systems, public services, infrastructure, public safety agencies, and the fight against corruption and other crimes.
Assets Subject to Forfeiture of Ownership
Derived or obtained directly or indirectly from illicit activities, as defined by the Law.
Used or intended in any way for illicit activities, in whole or in part.
Material objects of illicit activities.
Originating from the partial or total physical or legal transformation of the assets described in points 1, 2, and 3.
Legally acquired assets used to conceal illicitly acquired assets.
Legally acquired assets mixed with illicitly acquired assets.
Assets constituting an unjustified patrimonial increase, when there are reasonable elements to consider that they originate from illicit activities.
Assets constituting a patrimonial increase of any person, natural or legal, directly or indirectly related to a person subjected to the forfeiture action, provided there is reasonable information that such increase derives from illicit activities prior to the said action.
Assets constituting a patrimonial increase of any person, natural or legal, who has benefited from the assets, fruits, products, gains, or exchanges derived from illicit activities, without sufficiently and verifiably proving the lawful origin of such patrimonial increase.
Income, rents, fruits, products, or gains derived from assets related directly or indirectly to illicit activities.
Legally acquired assets equivalent in value to any of the assets described in the previous points, when their location, identification, seizure, preventive securing, or confiscation is not possible.
Legally acquired assets equivalent in value to any of the assets described in the previous points, when a third party's bona fide right over such assets is proven.
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