Barriers to Asset Recovery

Barriers to Asset Recovery


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It is estimated that the proceeds of crime, corruption and tax evasion represent between $1 trillion and $1.6 trillion per year, with half coming from developing countries. Proceeds are typically transferred abroad and hidden in foreign jurisdictions, thus requiring international cooperation. Various international conventions and agreements require international cooperation on this issue, in particular the United Nations Convention against Corruption; however, only $5 billion in stolen assets have been repatriated over the last 15 years.
This enormous gap reveals that significant barriers continue to impede asset recovery despite the commitments taken by governments, civil society and the private sector. Drawing on the experience of practitioners with hands-on experience, the Stolen Asset Recovery (StAR) Initiative launched this study to identify the barriers to stolen asset recovery internationally, provide brief analysis of the impact of these barriers, and propose recommendations for overcoming these obstacles. This volume is intended to guide policy makers in their efforts to ensure necessary resources and the development of a plan, policy or strategy aimed at eradicating the barriers to asset recovery. In addition, this study proposes actions to be taken by the G20, international organizations, financial institutions, developmental agencies and civil society.



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Publié le 20 juin 2011
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EAN13 9780821386613
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Barriers to Asset Recovery
An Analysis of the Key Barriers and
Recommendations for Action
Kevin M. Stephenson
Larissa Gray
Ric Power
Jean-Pierre Brun
Gabriele Dunker
Melissa PanjerBarriers to
Asset RecoveryBarriers to
Asset Recovery
Kevin M. Stephenson
Larissa Gray
Ric Power
Jean-Pierre Brun
Gabriele Dunker
Melissa Panjer© 2011 T e International Bank for Reconstruction and Development / T e World Bank
1818 H Street NW
Washington DC 20433
Telephone: 202-473-1000
All rights reserved
1 2 3 4 14 13 12 11
T is volume is a product of the staf of the International Bank for Reconstruction and Development / T e
World Bank. T e f ndings, interpretations, and conclusions expressed in this volume do not necessarily
ref ect the views of the Executive Directors of T e World Bank or the governments they represent.
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ISBN: 978-0-8213-8660-6
eISBN: 978-0-8213-8661-3
DOI: 10.1596/978-0-8213-8660-6
Cover photo: Istockphoto
Library of Congress Cataloging-in-Publication Data
Stephenson, Kevin, 1962-
Barriers to asset recovery : an analysis of the key barriers and recommendations for action / Kevin
S tephenson, Larissa Gray, Ric Power.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-8660-6 — ISBN 978-0-8213-8661-3 (electronic)
1. Forfeiture—Criminal provisions. 2. Searches and seizures. I. Gray, Larissa. II. Power, Ric. III. Title.
K5107.S74 2011
Acknowledgments vii
Abbreviations xi
Executive Summary 1
Principal Recommendations 5
Recommendations 5
The Problem and a Path to a Solution 11
Methodology 14
The Lausanne Process 15
How to Use This Study 17
General Barriers and Institutional Issues 19
Barrier 1: Lack of Trust 19
Barrier 2: Lack of a Comprehensive Asset Recovery Policy 24
Barrier 3: Deficient Resources 31
Barrier 4: Lack of Adherence to and Enforcement of AML/CFT Measures 33
Barrier 5: Too Many Cooks in the Kitchen—Lack of Effective Coordination 37
Barrier 6: Quick Trigger on Formal MLA Submission 40
Legal Barriers and Requirements that Delay Assistance 47
Barrier 7: Differences in Legal Traditions 47
Barrier 8: Inability to Provide MLA 49
Barrier 9: Failure to Observe UNCAC and UNTOC 53
Barrier 10: No Quick Freeze or Restraint Mechanisms 54
Barrier 11: Unbalanced Notice Requirements that Allow
Dissipation of Assets 56
Barrier 12: Banking Secrecy Laws 58
Barrier 13: Arduous Procedural and Evidentiary Laws 60
Barrier 14: No Provisions for Equivalent-Value Restraint and Confiscation 65
Barrier 15: Lack of a Non-Conviction Based Confiscation Mechanism 66
Barrier 16: Inability to Enter into Plea Agreements 69
Barrier 17: Immunity Laws that Prevent Prosecution and MLA 71
Barrier 18: Fleeting Statutes of Limitations 74Barrier 19: Inability to Recognize and Enforce Foreign Confiscation and
Restraint Orders 76
Barrier 20: Inability to Return Assets to Originating Jurisdictions 77
Operational Barriers and Communication Issues 79
Barrier 21: Absent or Ambiguous Focal Points 79
Barrier 22: Onerous Legal Requirements to MLA and Overly
Broad MLA Refusal 81
Barrier 23: Lack of Information on MLA Requirements 85
Barrier 24: Lack of Problem-Solving Ingenuity 86
Barrier 25: Indistinct Channels and No Feedback 89
Barrier 26: Unreasonable Delays in MLA Responses 90
Barrier 27: Lack of Publicly Available Registries 92
Barrier 28: Identifying Foreign Bank Accounts 93
Barrier 29: Using Restrained Funds to Pay Legal Fees;
Depletion of Confiscated Assets by Contingency
Fee Payments; Asset Mismanagement 94
Appendix A. Table of Recommendations 99
Appendix B 113
Canada 113
Cayman Islands 117
France 122
Germany 126
Hong Kong SAR, China 135
Japan 141
Jersey 146
Liechtenstein 151
Singapore 156
Spain 161
Switzerland 165
United Kingdom 170
United States 175
Glossary 181
vi I ContentsAcknowledgments
T is study is the result of special collaborative ef orts from colleagues around the world.
T eir time and expertise were invaluable in identifying barriers to asset recovery and
developing recommendations to overcome these barriers.
T is publication was written by Mr. Kevin M. Stephenson (team leader, Financial Market
Integrity Unit, World Bank), Ms. Larissa Gray (Financial Market Integrity Unit, World
Bank), Mr. Ric Power (United Nations Of ce on Drugs and Crime [UNODC]), Mr.
Jean-Pierre Brun (Financial Market Integrity Unit, World Bank), Ms. Gabriele Dunker
(project consultant), and Ms. Melissa Panjer (project consultant).
T e authors are especially grateful to Mr. Adrian Fozzard (Coordinator, Stolen Asset
Recovery [StAR] Initiative), Mr. Dimitri Vlassis (Chief of the Corruption and Eco-
nomic Crime Section - UNODC) and Mr. Jean Pesme (Manager, Financial Market
Integrity Unit, Financial and Private Sector Development Network) for their ongoing
support and guidance on the project.
As part of the draf ing and consultation process, practitioners’ workshops were held in
Vienna, Austria (May 2009), Casablanca, Morocco (August 2009), Buenos Aires, Argen-
tina (August 2009), and Lausanne, Switzerland (May 2010). Also, country visits were
conducted in Cayman Islands, Italy, Japan, and Singapore with some practitioners that
were unable to attend the aforementioned workshops. Practitioners brought experience
conducting criminal conf scation, non-conviction based conf scation, civil actions,
investigations, asset tracing, international cooperation and asset management—from
both civil and common law jurisdictions, and from both developed and developing
countries. T e following list is by name followed by the country or organization with
which that person is af liated. T is does not mean that this person’s participation nec-
essarily represented the views of the countries mentioned. T e people participating in
one or more of these workshops or country visits were Yves Aeschlimann (Switzer-
land), Oscar Alberto Del Rio (Colombia), Jorge Alberto Lara Rivera (Mexico), Georgis
Taylor Alexander (Saint Lucia), Simon Alexis (Trinidad), Jose Amarilla (Paraguay),
Maria Araujo (Brazil), Luis Arocena (Argentina), William Bailhache (Jersey), Gary
Balch (United Kingdom), Jaime S. Bautista (Philippines), Kennedy Bosire (Kenya),
Robert Broekhuijsen (Netherlands), Katia Bucaino (Italy), Rachmat Budiman (Indone-
sia), Ian Bulmer (Canada), Lindsey Cacho (Cayman Islands), Ricardo Cespedes
(República Bolivariana de Venezuela), Zephyerine A.T. Charles (Grenada), Leong Kok Cheong (Singapore), Jean-Sebastien Conty (France), Mohammed Dauda (Nigeria),
Maxence Delorme (France), Jean-Pierre Mvondo Evezo’o (Cameroon), Mario Gara
(Italy), Pascal Gossin (Switzerland), Adrian Fajardo (Mexico), Ahmed Yassine Foukara
(Morocco), Vernon Francois (Saint Lucia), Clara Garrido (Colombia), Rudolph Gor-
don (Cayman Islands), Yoshinobu Goto (Japan), Soh Kee Hean (Singapore), Hay Hung
Chun (Singapore), Koji Hayashi (Japan), Edward Hoseah (Tanzania), Henderson Hunte
(Cayman Islands), Takeshi Hiramatsu (Japan), Karen Hughes (St. Kitts and Nevis),
Giovanni Ilacqua (Italy),Toshifumi Ishida (Japan), Lawrence Iwodi (Nigeria), Shoichi
Izawa (Japan), Elena Jacob (Cayman Islands), Stephanie Jeavons (United Kingdom),
Mathew Joseph (Singapore), Miguel Jurado Fabara (Ecuador), Vitaliy Kasko (Ukraine),
Jumpei Kawahara (Japan), Shuhei Kojima (Japan), Yoshiyuki Komiya (Japan), Bibiana
Lee (Singapore), Chua Jia Leng (Singapore), Fernanda Lima (Brazil), Raymond Lockiby
(Grenada), Marko Magdic (Chile), Nahid Mahtab (Bangladesh), Jennifer Marie (Singa-
pore), Claudio Mascotto (Switzerland), John Masters (Cayman Islands), Takashi Miura
(Japan), Winston Cheng Howe Ming (Singapore), Abdul Mobin (Bangladesh), Ruth
Molina (Guatemala), Yoshinori Momonoi (Japan), Enrico Monfrini (Switzerland),
Shoko Moriya (Japan), Holly Morton (United Kingdom), Charles Moynot (France),
Elnur Musayev (Azerbaijan), Cahyo Rahadian Muzhar (Indonesia), Maxwell Nkole
(Zambia), Jean Fils Kleber Ntamack (Cameroon), Mirza Nurhidayat (Indonesia), Arif
Havas Oegroseno (Indonesia), Patricia O’Reilly (Argentina), Juan Pavia Cardell (Spain),
Dr. Ricardo Perez Blanco (Uruguay), Justice Jean Permanand (Trinidad), Pedro Pereira
(Basel Institute on Governance), Amelia Julia Principe Trujillo (Peru), Frederic Raf ray
(Guernsey), Renato Righetti (Italy), Nuhu Ribadu (Nigeria), Indra Rosandry (Indone-
sia), LaTeisha Sandy (St. Vincent and the Grenadines), Jean-Bernard Schmid (Switzer-
land), Maria Schnebli (Switzerland), Michael Scully (Singapore), Shunsuke Shirakawa
(Japan), Gavin Shiu (Hong Kong SAR, China), Salim Succar (Haiti), Romina Tello Cor-
tez (Argentina), Takahiro “Taka” Tsuda (Japan), Akinori Tsuruya (Japan), Ronald
Viquez Solis (Costa Rica), Naotsugu Umeda (Japan), Valerie Tay Mei Ing (Singapore),
Carmen Visuetti (Panama), Masaki Wada (Japan), Gerhard Wahle (Germany), Dr.
Robert Wallner (Liechtenstein), Gary Walters (United Kingdom), Wayne Patrick Walsh
(Hong Kong SAR, China), Paul Whatmore (United Kingdom), Marilyn Williams
(Belize), Simon Williams (Canada), Valentin Zellweger (Switzerland), and Dr. Fausto
Zuccarelli (Italy).
T e team benef ted from many insightful comments during the peer review process,
which was co-chaired by Mr. Jean Pesme and Mr. Adrian Fozzard. T e peer reviewers
were Mr. Luis Urrutia Corral (Head of FIU, Ministry of Finance and Public Credit,
Mexico), Mr. Agustin Flah (Legal Department, World Bank), Mr. Giovanni Gallo
(UNODC), Ms. Jeanne Hauch (Integrity Operations, World Bank), Mr. Mutembo
Nchito (MNB Legal Practitioners, Zambia), Ms. Heba Shams (Special Assistant, Of ce
of the Managing Director, World Bank), and Mr. Simon Whitf eld (Anti-Corruption
Team, United Kingdom Department for International Development). T e team also
appreciated the advice of the Honorable Barry O’Keefe (retired Chief Judge of the Com-
mercial Division and an Additional Judge of Appeal of the Supreme Court of New
South Wales, Australia) and Mr. Stephen Zimmermann (Director, Integrity Operations,
World Bank) during the concept note phase of the project.
viii I Acknowledgments