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A proposed bill aims to give the government the power to seize assets bought with undeclared income. This Asset Recovery Proclamation targets assets worth more than five million Birr, including both physical and digital assets, and can apply retroactively for up to 10 years. Unlike laws targeting criminal profits or corruption, this bill focuses on assets acquired without paying taxes. It covers a variety of assets like bank credits, shares, bonds, and digital currencies. The bill permits the government to freeze or seize these assets without needing a court ruling on their legality. It applies to individuals, businesses, and any legally recognized entities. Assets obtained through unknown channels will still fall under criminal or anti-corruption laws. People without formal employment or proper documentation, as well as small taxpayers with undeclared assets, could have their assets seized. A safeguarding mechanism allows individuals to avoid prosecution if they fully disclose illegally obtained assets, although these assets will still be taken. The draft also targets underground economic actors using digital currencies for illegal activities. It allows investigators to bypass privacy laws with a special court permit, giving them access to bank accounts, emails, and other communications without a court order. The draft is currently under review by Parliament’s Legal and Justice Affairs Committee.
