Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY...
Transcript of Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY...
![Page 1: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/1.jpg)
1
ASSET RECOVERY UNDER THE UNITED
NATIONS CONVENTION AGAINST CORRUPTION
Kimberley Prost
![Page 2: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/2.jpg)
2
COMPONENTS OF ASSET RECOVERY
CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERINGIDENTIFICATION/TRACKINGFREEZING/SEIZURECONFISCATIONINTERNATIONAL COOPERATIONRETURN
![Page 3: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/3.jpg)
3
OFFENCES/PUBLIC FUNDS
LAW SHOULD BE CLEAR AS TO EXPENDITURE/RIGHTS RE PUBLIC FUNDSAPPLICABLE TO HEADS OF STATE, GOVERNMENT, MINISTERS, OFFICIALSAPPLICABLE CRIMINAL OFFENCES
![Page 4: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/4.jpg)
4
ARTICLE 31 – DOMESTIC CONFISCATION REGIME
NECESSARY FOR EFFECTIVE ACTION AS REQUESTING/REQUESTED STATECOMPONENTS - IDENTIFICATION, TRACKING,FREEZING/SEIZING, MANAGEMENT, CONFISCATION AND RETURN PROCEEDS/INSTRUMENTALITIES
![Page 5: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/5.jpg)
5
IDENTIFICATION/TRACKING
MANDATORY REQUIREMENTS• Measures – general police powers,
search warrants (31(2))• Power in courts/competent
authorities to order bank, financial or commercial instruments be made available/seized (31(7))
![Page 6: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/6.jpg)
6
IDENTIFICATION/TRACKING
BEST PRACTICE!• FULL RANGE OF FINANCIAL
INVESTIGATIVE POWERS –MONITORING ORDERS, PRODUCTION ORDERS
• APPLICATION OF ARTICLE 50 POWERS-CONTROLLED DELIVERY, INTERCEPT, UNDERCOVER OPERATIONS
![Page 7: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/7.jpg)
7
FREEZING/SEIZING
MANDATORY TO HAVE MEASURES TO FREEZE/SEIZE
GENERALLY BY COURT ORDER
ADMINISTRATIVE ALSO POSSIBLE
![Page 8: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/8.jpg)
8
FREEZING/SEIZING
BEST PRACTICE!• EX PARTE APPLICATIONS
• FLEXIBLE TIMING
• REASONABLE GROUNDS TO SUSPECT/BELIEVE
![Page 9: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/9.jpg)
9
MANAGEMENT OF ASSETS(31(3))
NEED TO HAVE MEASURES FOR ADMINISTRATION OF FROZEN, SEIZED, CONFISCATED ASSETS
CRITICALLY IMPORTANT ON PRACTICAL LEVEL
![Page 10: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/10.jpg)
10
CONFISCATION
PROCEEDS Property derived from or obtained directly or indirectly through commission of convention offences
Includes transformed, converted, intermingled, income or other benefit
![Page 11: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/11.jpg)
11
CONFISCATION
INSTRUMENTALITIES
• PROPERTY, EQUIPMENT OR OTHER INSTRUMENTALITIES USED IN OR DESTINED FOR USE IN OFFENCES ESTABLISHED IN ACCORDANCE WITH CONVENTION
![Page 12: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/12.jpg)
12
CONFISCATION
BEST PRACTICE!• APPLICABLE TO OFFENCES/SERIOUS
OFFENCES
• COVERS BOTH DOMESTIC OFFENCES AND FOREIGN OFFENCES WITH DUAL CRIMINALITY
![Page 13: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/13.jpg)
13
CONFISCATION
PROTECTIONS FOR BONA FIDE THIRD PARTIES (31(9))
MAY USE REVERSE ONUS (31(8))
![Page 14: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/14.jpg)
14
NO BANK SECRECY
• Article 40 mandates measures for domestic investigations to overcome obstacles arising from bank secrecy
• May maintain protections for information but subject to access for investigations
![Page 15: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/15.jpg)
15
INTERNATIONAL COOPERATION (GENERAL)
Article 44 – Extradition – use of convention as basis, deemed into listsArticle 46 – Mutual assistance –mandates powers in domestic law to render broad range of assistance (best practice is general MLA law) Central Authority (46(13))/ No bank secrecy refusal (46(8))
![Page 16: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/16.jpg)
16
CHAPTER V – ASSET RECOVERY
Special focus on powers needed to effect return
Covers prevention, cooperation and recovery mechanisms
![Page 17: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/17.jpg)
17
ARTICLE 52 - PREVENTION
Customer identification ID beneficial owners on high value acctEnhanced scrutiny of PEP’s (for/dom)Prevent establishment of banks with no physical presence Consider financial disclosures, sharing of disclosures, report of foreign inv
![Page 18: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/18.jpg)
18
DIRECT RECOVERY (Article 53)
• State parties shall be allowed to initiate civil action in another SP court to establish ownership
• Courts shall be allowed to order offenders to pay compensation
• In confiscation decisions, Courts shall recognize another SP claim as legitimate owner
![Page 19: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/19.jpg)
19
COOPERATION IN FREEZING AND CONFISCATION
Article 54(1) – Confiscation • Must have measures to give effect to
foreign confiscation order – optional approaches
• Historically using criminal conviction based confiscation regimes
• Problems both domestically and with foreign requests
![Page 20: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/20.jpg)
20
• Use money laundering or other such offence for confiscation
• Consider measures to allow for confiscation without criminal conviction in appropriate cases including death, flight
![Page 21: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/21.jpg)
21
Non conviction based asset confiscation
Action v. property not person
Standard “civil” – balance of probabilities
Use of civil as opposed to criminal rules
![Page 22: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/22.jpg)
22
COOPERATION IN FREEZING/SEIZING
Must have powers to freeze/seize:On the basis of a foreign order for freezing/seizingOn the basis of a foreign request (by implication must extend domestic law to foreign offences)Consider measures based on foreign arrest or charge (blocking orders)
![Page 23: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/23.jpg)
23
COOPERATION N FREEZING/SEIZING
Where foreign order, optional approaches implied – direct (order registered and enforced); indirect (domestic order obtained) Action required only where reasonable basis for the requested State Party to believe that there are sufficient grounds and property would be subject to conf.
![Page 24: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/24.jpg)
24
ARTICLE 55- COOPERATION IN CONFISCATION
Upon request:• Indirect enforcement – obtain and give
effect to a domestic order
• Direct – Give effect to foreign order (register and enforce)
![Page 25: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/25.jpg)
25
COOPERATION IN FREEZING/CONFISCATION
BEST PRACTICE!!
For freezing/seizure and confiscation mechanism for direct enforcement!!!
![Page 26: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/26.jpg)
26
ARTICLE 57 - RETURN
In case of • embezzlement of public funds or
laundering of such funds;• prior ownership of confiscated property
(reasonably established by requesting state party )shall return where confiscated on request and final order
![Page 27: Kimberley Prost ASSET RECOVERY - OECD.org...Kimberley Prost 2 COMPONENTS OF ASSET RECOVERY CRIMINILIZATION/PUBLIC FINANCE PREVENTION OF MONEY LAUNDERING IDENTIFICATION/TRACKING FREEZING/SEIZURE](https://reader033.fdocuments.in/reader033/viewer/2022060916/60a95c22afa93f58e20586e2/html5/thumbnails/27.jpg)
27
ARTICLE 57- RETURN
In all other cases give priority consideration to return to State party, prior legitimate owners, or compensating victims of crime
Reasonable expenses/ agreements