Definition of Assets
Assets is literally defined “An item of property owned by a person or company,
regarded as having value and available to meet debts, commitments, or legacies”
Technically it is defined, under section 2 (b) of CNSA, 1997, as a property
owned, cont4rolled or belonging to an accused, in his own name or on his behalf
within or without Pakistan for which one cannot reasonably account.
Purview of section 12 CNSA, 1997
For the purpose of Assets under CNSA 1997, it is to accentuate upon the
construction and connotation of provisions of section 12 CNS Act, 1997. This
section is divided into three main parts. a. The first part deals with the
person himself who possesses, acquires, uses, converts, assigns or transfer any
such assets which is drug proceed either by himself or in the name of any other
associate. b. The second part deals with those persons who are not by themselves
offenders/ drug dealers but they hold and possess such assets on behalf of any
such person who is involved in drugs and has raised such property from drug
proceeds. c.The third part is regarding concealment, disguise of the true
nature, source, location, disposition, movement, title or ownership of such
assets by making false declaration in relation of such assets. Third part of
section 12 is covering both first and second part as it includes the accused who
himself generates/obtains the drug proceeds and also those who though are not
directly dealing with drugs nor they really own the drug proceeds or any such
assets by themselves rather they are benami transaction holders or playing a
role of front man for real drug paddlers and smugglers.
The CNSA 1997 gives mandate to the member of the Force who is empowered under
section 21 or 37 of the Act, 1997, to trace, identify and freeze assets of any
person who acquired the same by illicit involvement in narcotics within or
without Pakistan. The information may be from inside the country or even an
information from a foreign country. For tracing purpose all the stake holders
and authorities including Banks, Financial Institutions etc having custody or
authority of certain records regarding the assets of any person, are legally
bound to provide the record and details of the same under provisions of section
31 of CNSA, 1997. The data can also be collected from private institutions like
Estate Agencies, Builders, Money Changers, societies, firms and so on so forth.
section 38 CNSA 1997 deals with tracing and identifying the assets of any person
against whom a complaint or information is made that he has acquired assets
through illicit involvement in narcotics within or without Pakistan. the
authorized officer of the force is empowered to trace and identify the assets of
such person. There are vast powers to the investigating officers while tracing
assets to trace even without Pakistan, which means to investigate in any foreign
country where the accused might have acquired assets. section 38 (2) CNSA 1997
provides procedure for a foreign conviction, that a Pakistani national is
charged for an offence which is also an offence under CNSA 1997, his assets
shall be inquired, traced and identified for freezing purpose. sub section 3
provides that such information shall be placed before the special court to
taking action for forfeiture of assets. it further provides that if the person
is outside pakistan, then the information of his assets shall be placed before,
High court.
Where freezing of assets is sought under section 37 (2) CNSA, 1997 or
restraining directions made under section 6 (5) of ANF Act, 1997, the
requirement of section 12 CNSA, 1997 must be fulfilled. Once the investigation
of assets of any one is initiated and tracing of certain assets are found then
out of the traced assets, the assets derived from drug proceeds are to be
identified. The main difference between tracing and identifying is clearly
showing the intention of legislator. It is to be seen whether the assets are
devolved by way of inheritance or the same are derived by other sources etc so
that the prosecution case may not fail at a later stage before the court of law
on such grounds. Tracing and identifying are two different words which have two
different connotations. Tracing means to locate all the properties and assets of
the accused/person which he has acquired by any of the means. Whereas, identify
means the Investigation officer has to pin point the assets which are acquired
through illicit involvement in narcotics. the words illicit involvement in
narcotics means any kind of involvement it does not limit to carry or possess
the narcotics because it includes the meaning of associate too. Such as
investigation means to collect all evidence, whereas, enquiry and trial is to
separate grain from chaff.
Prohibition of alienation of assets frozen
When the properties/assets are ordered to be frozen either by the court under
sub section 1 of section 37 CNS Act, 1997, or by the Director General or any
such authorized officer, or under section 40 CNSA, 1997, the same shall not be
alienated as prohibited under section 41 CNSA 1997. if any person so alienates
in violation of mandate of section 41 (1) section 42 clearly bars the acquiring
of assets which are frozen under section 37 or 40 CNS Act,1997.
Section 19 of the CNS, Act, 1997 provides that when an accused is sentenced to
imprisonment for a term exceeding three years, the court shall also order that
his assets derived from trafficking in narcotic substances shall stand forfeited
to the Federal Government. It is pertinent to mention here that initial burden
to prove that these are assets derived from legitimate sources lies upon
accused. Whereas, if the case is being proceeded under section 12 and 13 CNS
Act, 1997, the burden lies upon prosecution. When the case is proceeded under
section 12 and 13, CNS Act, 1997, and accused is convicted by the trial court,
the court may be requested for forfeiture of the assets, of the convict or his
associates, relatives, derived from drug proceeds. conviction u/s 13 is
sufficient to forfeit the assets of convict regardless of quantum of sentence.
Whereas, in other convictions under CNS Act,1997, the quantum of sentence of
more than 3 years, as provided under section 19 CNSA 1997, is pre-requisite.
Section 40 CNSA 1997, provides that forfeiture of assets, of a Pakistani
national who is convicted in a foreign country shall be made. Conditions are to
be fulfilled while seeking such forfeiture are:
• convict must be a citizen of Pakistan
• conviction by a foreign court
• conviction for an offence which is also offence punishable under CNSA, 1997
• application must be made by DG or such authorized officer
• foreign judgment must be certified copy
• judgment passed by foreign court of competent jurisdiction
• it was passed on merits of the case
• it was not obtained by fraud
• it not in contravention of Pakistani laws
• it has assumed finality through appeal, review, revision and is not pending
before any higher forum
International cooperation section 56 to 66 CNSA 1997
The international cooperation under section 56 of CNSA 1997 is conditional in
terms of sovereignty, security, public order or other public interest of
Pakistan.
Section 57 (c, d and e) provides procedure, where Pakistan makes a request to
another state, having a treaty, arrangement or Memorandum of Understanding for
freezing, confiscating and transmit of assets etc under the international
cooperation and vice versa as provided under section 58 (d & h) CNSA, 1997,
Federal Government may assist a foreign state in the like manner for freezing,
forfeiture of assets of an accused, facing trial in a foreign state regarding an
offence which is also punishable under CNSA, 1997, situated in Pakistan. It is
worth mentioning here that the State making request to Pakistan shall give full
particulars of accused so also his assets for tracing, freezing and forfeiture
in addition to the orders of the court having jurisdiction. Where a foreign
request is made for restraining order, the same may be placed before the High
court which may issue a freezing order if reasonable grounds exist that:-
• an offence has been committed or is suspected on reasonable grounds to have
been committed by a person against the laws of the requesting State which if
committed in Pakistan would have constituted an offence under CNS Act 1997;
• an investigation or proceeding has commenced in the foreign State relating to
that offence;
• assets, of such accused or his associates etc, are located in Pakistan; and
• an order made by foreign court to forfeit the assets of accused;
The enforcement of a foreign restraining order or foreign forfeiture order shall
be initiated by the Director General of the Force and the Director General may
apply, to the high court, for registration of the order issued by a court of
that State. If such order is satisfied or ceased to exist, the High Court shall
cancel the registration, upon application by the Director General or an
authorized officer by him. All the acts taken after registration of the foreign
orders, shall be deemed to be taken under the CNS Act, 1997.
The federal government may enter into an arrangement with the authorities of a
foreign State of the reciprocal sharing with that State of such part of any
property realized pursuant to this Act in two ways
• In the foreign State, as a result of action taken by the Federal Government
and;
• In Pakistan, as a result of action taken in Pakistan
Note: Feel free to contact at given email address