Provisional attachment of properties funded by diverted bank loans upheld as proceeds of crime and equivalent value assets.

Properties purchased from funds diverted out of bank finance, together with rent generated from those assets, may be provisionally attached as proceeds of crime where the acquisition is traceable to tainted funds and no independent source is shown. The Tribunal accepted that the sanctioned loan was not used for its intended purpose, remained unpaid, and that the assets were linked to diverted funds transferred by the parent company. It also held that property acquired before the alleged crime period can still be attached as equivalent value when direct proceeds are unavailable. The provisional attachment was upheld and the challenge failed.

---

---

Issues: Whether immovable properties acquired from funds diverted from bank loans, and the rent derived from such properties, could be treated as proceeds of crime and provisionally attached even where the purchase preceded the alleged crime period.

Analysis: The Tribunal found that the properties were acquired from funds transferred by the parent company after diversion of bank finance, and that the appellant had no independent source for the acquisition. The sanctioned loan was not used for its intended purpose, remained unpaid, and the assets, along with rental receipts generated from them, were linked to the diverted funds. The Tribunal also accepted that property acquired prior to the crime period may still be attached where it represents equivalent value traceable to the proceeds of crime and the direct proceeds are not available.

Conclusion: The attachment of the properties and rental proceeds was upheld, and the challenge to the provisional attachment failed.

Final Conclusion: The Tribunal affirmed the impugned attachment order on the footing that assets purchased from diverted loan funds can be subjected to attachment as proceeds of crime or as equivalent value assets.

Ratio Decidendi: Property acquired from diverted criminally tainted funds, including as equivalent value where direct proceeds are unavailable, can be provisionally attached under the money-laundering framework.

---