Constitutional Court Rules That Malta's Freezing Order Laws Are Incompatible With EU Rules

Introduction

On the 30 November 2022, the First Hall, Civil Court in its Constitutional jurisdiction (the "First Court") in delivering a ruling in the case of Sebastian Dalli v. L-Avukat tal-Istat u l-Avukat Generali (Application no. 370/21) held that Malta's freezing order laws are incompatible with EU rules, as national laws do not allow an individual to appeal from a judgement in which the court orders assets to be frozen.

Facts of the Case

In 2009, Dalli was charged with complicity in a drug trafficking case and was subjected to a freezing order, as per Article 22A of the Dangerous Drugs Ordinance, Chapter 101 of the Laws of Malta (the "Dangerous Drugs Ordinance"), which freezing order continued to remain in force for a further 13 years. Dalli referred his case to the Constitutional Court on the basis that his fundamental rights had been breached due to the longevity of enforcement of what was initially meant to be a temporary freezing order.