1

Towards A Global Architecture for Asset

Recovery November 2009

The Asset Recovery Agenda

Legal Framework

Asset Recovery Process

Financial Center Initiatives

Proceeds of Corruption

International Cooperation

Monitoring Progress

3

Putting in place the legal framework

Integrated approach, focus on proceeds of corruption

Criminalization UNCAC framework,

Money laundering

Asset recovery tools Criminal forfeiture

Non-conviction based forfeiture

Civil proceedings

Enforcement of foreign judgments

Consultative process 0% 20% 40% 60% 80% 100%

23. Laundering Proceeds of Crime

(R=18)

52. Prevention & Detection (R=41)

53. Direct Recovery of

Property (R=38)

54. Mechanisms for Recovery

(R=43)

55. International Cooperation

(R=29)

57. Return & Disposal of Assets

(R=41)

UNCAC Self Assessment Checklist: Technical Assistance

Legislation Legal Advice Other TA None

0% 20% 40% 60% 80% 100%

23. Laundering Proceeds of Crime

(R=77)

52. Prevention & Detection (R=77)

53. Direct Recovery of

Property (R=77)

54. Mechanisms for Recovery

(R=77)

55. International Cooperation

(R=77)

57. Return & Disposal of Assets

(R=77)

UNCAC Self Assessment Checklist: Implementation

Yes In Part No No Response

4

Supporting the asset recovery process

Building effective teams, for: leadership, information exchange, accountability for results Ad hoc / permanent teams

Operational support for national authorities Investigators, Incident

Response Teams (Corruption) UMBRA, information

exchange and analysis on corruption cases

Legal representation

Core• Prosecutors / Attorney General

• Police / Investigators

• Central Authority for legal cooperation

• Solicitor General

Key Agencies• Financial Intelligence Unit

• Audit Authority

• Anti-Corruption Body

• Tax Authorities

• Ministry of Finance

5

Taking Initiative in Financial Centers

The Tools Spontaneous information

exchange Administrative / judicial

freezing orders Pursuing the bribe giver (and

bribe taker?) sanctions, profits & punitive damages

Pursuing foreign corruption, using money laundering & organized crime and other domestic offenses

The Means Policy on tackling foreign

corruption Resources and mandate for

law enforcement Specialist foreign corruption

units : leadership, resources, accountability for results

Information exchange, cooperation with investigations incl. civil proceedings

6

Tackling the Proceeds of Corruption

Target the laundering of the proceeds of corruption through the anti-money laundering (AML) regime : Assess risks related to domestic and foreign proceeds of

corruption; Draw on UNCAC to strengthen AML standards (predicate offenses, politically

exposed persons); Implement AML standards on customer due diligence – including politically

exposed persons – and beneficial ownership Coordinate between AML and Anti-Corruption activities

0%

25%

50%

75%

C LC PC NC

R.6 PEPs

FATF Non FATF

0%

25%

50%

75%

C LC PC NC

R.33 Beneficial Ownership

FATF Non FATF

0%

25%

50%

75%

C LC PC NC

R.34 Trusts

FATF Non FATF

7

Strengthening Cooperation

International standards, guidance and tools supporting streamlined procedures

Signposting appropriate gateways for formal cooperation & access to procedural information;

Use of alternative, informal channels Supporting informal networks

0%

25%

50%

75%

C LC PC NC

R.36 Mutual Legal Assistance

FATF Non FATF

0%

25%

50%

75%

C LC PC NC

R.37 Dual Criminality

FATF Non FATF

0%

25%

50%

75%

C LC PC NC

R.38 MLA for Proceeds of Crime

FATF Non FATF

Challenges in Dual Criminality

• Non-conviction based forfeiture

• Illicit enrichment

8

Monitoring progress and feedback

Monitor progress in establishing legal and institutional framework for asset recovery. UNCAC, FATF

Report on the level of asset recovery activity: how many cases? how much returned? OECD DAC

Generate feedback from asset recovery cases, to inform standards and practice. OECD, FATF

Communicate success stories!

The Asset Recovery Agenda

Legal Framework • Integrated Approach • Criminalization• Asset recovery tools

Asset Recovery Process • Multi-Agency Teams• Operational Support • Investigation and information

Financial Center Initiatives • Policy on Foreign Corruption• Dedicated teams• Legal initiative, ML / organized crime / bribery

Proceeds of Corruption • Assessing risks proceeds of corruption • Strengthen standards (UNCAC link)• AML and AC coordination

International Cooperation • Signaling for formal cooperation • Streamlining procedures • Informal channels, networks

Monitoring progress • Feedback for practitioners and policy makers • Quantitative information on progress • Success stories

10

Political commitment critical Communicating success mobilizes political support Success = cases won + development & governance impacts

What drives asset recovery?

REQUESTING STATE REQUESTED STATE

Law

Enforcement Agencies

Foreign Affairs

Finance & Banking

Supervisors

Law Enforcement

Agencies

Foreign Affairs &

Development

Finance & Banking

Supervisors

Resource Mobilization

Incentive

Possible

additional resources

Possible additional resources

Additional resources

Costs: possibly

unfunded mandate

Resources for development

partners

Resources for development

partners

Law Enforcement

Incentive

Crime &

corruption control

Cooperation on law

enforcement issues

Reinforce control

environment

Limited domestic law enforcement

risk

Support for development

agenda

Money laundering

risk

Reputational Incentive

Internal

credibility & legitimacy

External credibility & reputation

Internal & external

credibility & reputation

Reciprocity in mutual legal assistance

External credibility & reputation

Financial sector

interest & reputation