Report No. 166

1.5.1. SAFEMA applied to.-

(a) persons convicted under the Customs Act and Foreign Exchange Regulation Act; (b) persons detained under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) and where such order has not been revoked on the report of the Advisory Board or has not been quashed by the Court. (It must be remembered that detention under COFEPOSA is neither a conviction nor is it a proof of guilt, it being merely a preventive measure. The expression 'illegally acquired property' is very significant and deserves to be set out in full:

"(c) "illegally acquired property", in relation to any persons to whom this Act applies means-

(i) any property acquired by such persons, whether before or after the commencement of this Act wholly or partly out of or by means of any income, earnings or assets derived or obtained from or attributable to any activity prohibited by or under any law for the time being in force relating to any matter in respect of which Parliament has power to make laws; or

(ii) any property acquired by such person, whether before or after the commencement of this Act, wholly or partly out of or by means of any income earnings or assets in respect of which any such law has been contravened; or

(iii) any property acquired by such persons whether before or after the commencement of this Act, wholly or partly out of or by means of any income, earnings or assets the source of which cannot be proved and which cannot be shown to be a attributable to any act or thing done in respect of any matter in relation to which Parliament has no power to make laws; or

(iv) any property acquired by such person, whether before or after the commencement of this Act, for a consideration, or by any means, wholly or partly traceable to any property referred to in sub-clauses (i) to (iii) or the income or earnings from such property;

and includes-

(A) any property held by such person which would have been in relation to any previous holder thereof, illegally acquired property under this clause if such previous holder had not ceased to hold it, unless such person or any other person who held the property at any time after such previous holder or, where there are two or more such previous holders, the last of such previous holders is or was a transferee in good faith for adequate consideration;

(B) any property acquired by such person, whether before or after the commencement of this Act, for a consideration, or by any means, wholly or partly traceable to any property falling under item (A), or the income or earnings therefrom."