Basel Institute on Governance
Recovery of Frozen Assets
(“Illicit Financial Flows: Applicable International Legal Frameworks”)
Kodjo Attisso | 5–8 June 2014 2014|Yaoundé, Cameroon
Structure
I.
II.
III.
IV.
Introduction
International Legal framework
Process of Asset Recovery
Approaches to the Challenges
KO DJ O AT T ISSO | 14 MAY 2014
Structure
I.
II.
III.
IV.
Introduction
International Legal framework
Process of Asset Recovery
Approaches to the Challenges
KO DJ O AT T ISSO | 14 MAY 2014
I. Introduction
KO DJ O AT T ISSO | 05 - 08 J UNE 2014
I. Introduction
KO DJ O AT T ISSO | 05 - 08 J UNE 2014
II. International Legal framework
Source: Stolen Asset Recovery: Global Architecture for Asset Recovery
KO DJ O AT T ISSO | 05 - 08 J UNE 2014
III. Asset Recovery Procedures
KO DJ O AT T ISSO | 05 - 08 J UNE 2014
III. Process of Asset Recovery
 WHAT IS ASSET RECOVERY?
Tracing
Freezing/
Seizing
Confiscation
Repatriation
/
Monitoring
 HOW DOES ICAR SUPPORT THIS PROCESS?
• Capacity building
• Consulting (legal/caseworks)
• Tools
KO DJ O AT T ISSO | 05 - 08 J UNE 2014
III. Process of Asset Recovery
Five steps to recover assets
1.Identification of cases
• How to initiate cases?
2.Tracing
• How and where to find the assets?
3.Freezing
• How to freeze the assets?
4.Confiscation/Forfeiture – getting the evidence
• What does the requested and requesting state need to do to
change ownership?
5.Repatriation – getting the proceeds
• To whom does the money belong?
KO DJ O AT T ISSO | 05 - 08 J UNE 2014
First step: Case Identification
Challenges
• Hidden transnational networks
• Lack of expertise/capacity/ technology
• Political will/interference
Solutions
• Whistleblower systems
• Banking regulations (know your customer systems, suspicious
transaction reports, politically exposed person PEPs)
• Investigative journalism
• Enforcement of investigation units
KO DJ O AT T ISSO | 05 - 08 J UNE 2014
Second step: Tracing
Challenges
• Ability of local law enforcement to act (understand documentation,
etc.)
• No evidence available
• Bank secrecy
• Problem of fishing expeditions
Solutions
• Follow the money, or even the person
• Use of informal channels
•
Amnesty agreements
KO DJ O AT T ISSO | 05 - 08 J UNE 2014
Third step: Freezing
Challenges
• Speed of money/delay of reaction
• Lack of expertise in victim countries
• Mutual legal assistance requests
Solutions
• Stronger FIU cooperation
• Informal channels
• Coordinated investigations in the requesting state
• Provisonal measures (seizure)
KO DJ O AT T ISSO | 05 - 08 J UNE 2014
Fourth step: Forfeiture/Confiscation
Challenges
• Mutual legal assistance requests
• Delay in criminal proceedings due to legal problems
• Difficulty to establish evidence/ability of local courts
• Huge costs
Solutions
• Easing burden of proof
• Use of anti-money laundering law in requested states
• Use of civil actions
• Voluntary repatriation – out of court settlements
KO DJ O AT T ISSO | 05 - 08 J UNE 2014
Fifth step: Repatriation
Challenges
• National interest in requested states
• Lack of confidence in the rule of law in the requesting jurisdiction
• Conditions
• Third parties interests
Solutions
• Asset sharing agreements
• Well prepared monitoring
• Early release through escrow accounts
KO DJ O AT T ISSO | 05 - 08 J UNE 2014
IV Approaches to the Challenges
Political will
• Willigness and ability for legislative reform
• Accountability and transparency
• Prosecution of former public officials
• Effective cooperation of requested states
Capacity constraints
• Building institutional capacity
• Education and training of staff
KO DJ O AT T ISSO | 05 - 08 J UNE 2014
VI Approaches to the Challenges
Conventions and Agreements
• UNCAC
• African Union Convention on Preventing and Combating Corruption
• ECOWAS Protocol on the Fight against Corruption
• Financial Action Task Force (FATF) Standards
Multilateral Initiatives
• Conference of States Parties of UNCAC and Working Group on
Asset Recovery
• WB/UNODC: Stolen Asset Recovery Initiative (StAR)
KO DJ O AT T ISSO | 05 - 08 J UNE 2014
Thanks for your Attention
Questions?
KO DJ O AT T ISSO | 05 - 08 J UNE 2014