Purpose of Criminal Forfeiture
Forfeiture is a legal consequence of committing a crime. Its main objective is to eliminate illicit profits obtained through criminal acts, preventing the offender or their accomplices from benefiting from them. It also seeks to prevent the instruments of crime from being used again, strengthening criminal justice and economic transparency.
Forfeiture of Crime Instruments
The law provides that the objects or tools used to commit a crime, as well as the effects derived from it, must be forfeited. However, if these assets belong to a third party not responsible for the offense, that person may recover them by demonstrating legitimate ownership and good faith.
When the forfeited assets are lawfully tradable, they may be sold at public auction to cover the civil liability of the convicted person. If not, they will be destroyed or rendered unusable.
Forfeiture of Illicit Gains and Assets
In cases involving crimes related to the legitimization of illicit gains, the law allows broader forfeiture that covers not only assets directly obtained from the crime but also those indirectly acquired with such resources.
This includes assets transferred to third parties, donations, or apparent acquisitions, unless the beneficiaries prove that they acted in good faith and without knowledge of the illicit origin. If the assets are mixed with legitimate property, forfeiture will be applied only up to the estimated value of the illicit portion.
The process must involve a notary public, who is responsible for inventorying the property and ensuring its identification and location. When physical recovery of the property is not possible, the judge may order forfeiture of its equivalent value.
Destination of Forfeited Property
The forfeited assets and resources become State property, maintaining validly constituted real rights in favor of third parties up to the recognized amount. The State is responsible for their administration and social use of these resources, in accordance with specific regulations.
In Summary, criminal forfeiture serves a dual function: punishing unlawful acts and preventing unjust enrichment. This mechanism reaffirms the Bolivian State’s commitment to transparency and the fight against economic crime. By ensuring judicial oversight and respect for due process, it protects both the public interest and citizens’ rights.
Our law firm provides specialized legal counsel in Economic Criminal Law and Criminal Procedure, including forfeiture and asset recovery processes. Contact us for a confidential consultation.
Frequently Asked Questions (FAQs)
What is criminal forfeiture?
It is a legal measure that allows the State to confiscate property or resources obtained through a crime.
What property can be forfeited?
All instruments, effects, or profits derived from the commission of a crime, except those belonging to non-liable third parties.
What happens if illicit assets are mixed with lawful ones?
Forfeiture will apply only up to the estimated value of the illicit portion determined by the judge.
Does forfeiture affect good-faith third parties?
No. Third parties can recover their property if they prove they acquired it legitimately and without knowledge of its illicit origin.
What happens to the forfeited property?
It becomes State property, which is managed according to law and may be allocated for social or reparative purposes.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
