Armenia moves to end settlement option in illicit property confiscation cases

Prime Minister Nikol Pashinyan has instructed that the possibility of settlements in proceedings for the confiscation of property of illicit origin be abolished, so that 100% of the value of such property is returned to the state, rather than the current minimum of 75%.

Speaking to journalists, Pashinyan said he had instructed that the relevant provision be abolished, meaning that the state would receive the full value of property of illicit origin.

“By the way, you know that under the system for confiscating illicitly acquired property, there is a provision that in the event of a settlement, 25% remains [with the owner], while 75% is returned to the state. I have instructed them to abolish that provision. There is no longer any 25%. At all,” Pashinyan said.

According to him, the state had given sufficient time to make use of this opportunity.

“We gave them that chance, they did not take advantage of that chance for eight years, and now it must be zeroed out. They must return 100%,” the Prime Minister said.

Pashinyan said the planned legislative amendment would completely eliminate the possibility of reaching such settlements.

“There will be a legislative amendment soon, and this possibility of settlement will be eliminated. That is, starting from illegally acquired shoes, we will take everything,” the Prime Minister said.

The National Assembly of Armenia adopted the Law on Confiscation of Property of Illicit Origin in 2020. Under Article 19 of the current law, proceedings may be concluded through a settlement agreement if the owner of property of illicit origin submits a declaration as prescribed by law. Under a settlement, the amount of property transferred to the Republic of Armenia may not be less than 75% of the value of the property presumed to be of illicit origin based on the findings of the examination. The value of the property is calculated based on its market value at the time the settlement is concluded.