Arsenal against criminal enterprises | Borneo Online Bulletin

In a decisive move to crack down on illicit activities and recover proceeds of crime, Brunei Darussalam has effectively used the Criminal Assets Recovery Ordinance (CARO) 2012.

The legal framework constitutes a formidable weapon in the national arsenal against criminal enterprises, ensuring that crime does not pay.

CARO was created with the aim of depriving criminals of their ill-gotten gains, thereby disrupting the financial foundations of illegal activities such as drug trafficking, corruption and money laundering.

The order allows authorities to seize and confiscate property derived from or used in criminal activities, even in the absence of a conviction, through a process known as non-conviction forfeiture.

CARO MECHANISMS

The order operates according to several key principles:

Confiscation without conviction

This allows for the seizure of assets without the need for a criminal conviction, provided there is clear evidence linking the assets to criminal activity.

This is particularly crucial in cases where it may be difficult to prosecute the individuals involved, but the illegal origin of their assets is obvious.

Contaminated goods

Under CARO, any property considered “contaminated” – that is, obtained through or used in the commission of a crime – may be confiscated.

This includes physical assets such as vehicles and real estate, as well as financial assets like bank accounts and cash.

Criminal Asset Forfeiture Fund

Seized property is transferred to this fund, which is used to support law enforcement efforts and community initiatives aimed at preventing crime.

CARO’S HIGH-PROFILE APPLICATIONS

One of CARO's most recent requests is for an arrest in January 2022 on suspicion of drug trafficking.

The Narcotics Control Bureau seized a series of assets, including two vehicles, two boats with their engines, money in a local bank and cash.

Although he did not contest the confiscation, the individual's admission of his involvement in drug trafficking and the absence of legitimate income to support his assets facilitated the High Court's decision to declare these assets contaminated and order their confiscation for the benefit of the government.

CHALLENGES AND CONSIDERATIONS

Despite their effectiveness, criminal asset recovery orders face several challenges:

Legal obstacles

Establishing the link between assets and criminal activity can be legally complex and time-consuming, often requiring extensive cross-border investigations.

Due process issues

Ensuring that asset recovery processes respect due process and the rights of individuals is crucial to maintaining the legitimacy and fairness of the system.

IMPACT AND SIGNIFICANCE

The use of CARO not only ensures that criminals are deprived of their resources, but also acts as a deterrent, signaling to potential offenders that the Sultanate is unwavering in its resolve to fight crime.

By removing financial incentives for criminal behavior, CARO helps undermine the operations of criminal networks and strengthen the rule of law.

FUTURE PROSPECTS

Faced with the increasing complexity of financial crimes and the advent of digital currencies, Brunei is continually improving its legal and technological capabilities to stay one step ahead of criminals.

CARO remains a central part of this strategy, ensuring that justice extends beyond convictions and extends to dismantling the economic foundations of crime.

Ultimately, the Criminal Assets Recovery Ordinance 2012 demonstrates Brunei Darussalam’s commitment to a crime-free society.

By recovering the proceeds of crime and reinvesting them in community and law enforcement initiatives, CARO not only punishes wrongdoers, but also strengthens the overall security and integrity of the nation. –Rizal Faisal