Annual Report January–December 2017 © 2018 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved.
StAR—the Stolen Asset Recovery Initiative—is a partnership between the World Bank Group and the United Nations Office on Drugs and Crime (UNODC) that supports international efforts to end safe havens for corrupt funds. StAR works with developing countries and financial centers to prevent the laundering of the proceeds of corruption and to facilitate more systematic and timely return of stolen assets.
This work is a product of the staff of The World Bank and United Nations Office on Drugs and Crime with external contributions. The findings, interpretations,and conclusions expressed in this work do not necessarily reflect the views of The World Bank its Board of Executive Directors, or the governments they represent, the United Nations, or its Member States. The World Bank and the United Nations do not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank or the United Nations concerning the legal status of any territory or the endorsement or acceptance of such boundaries.
Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank or the United Nations, all of which are specifically reserved.
Cover photo: © istockphoto/alfexe. Further permission required for reuse.
All other photos © Shervin Majlessi unless otherwise credited.
Design by Sensical Design & Communication
The StAR Initiative would not be possible without the generous support of our donors: • Australian Department of Foreign Affairs and Trade (DFAT) • Norwegian Ministry of Foreign Affairs • Swiss Agency for Development and Cooperation • UK Department for International Development (DFID) • U.S. Department of State, Bureau of International Narcotics and Law Enforcement Affairs (INL) Delegates from 26 countries attending GFAR Contents
Executive Summary 3 StAR’s Work Streams 6 Country Engagements 7 Policy Influence 13 Partnerships & Regional Activities 18 Knowledge & Innovation 22 Advocacy & Communications 25 Management, Staffing & Funding 29 Conclusion & Looking Forward 31 Appendix: Country Engagements 2017 32
StAR Annual Report: January–December 2017 1 2 StAR Annual Report: January–December 2017 Executive Summary
n 2017, StAR celebrated its ten- formally recognized by the Ukrainian year anniversary with remarkable government in the confiscation of progress in the asset recovery US$1.3 billion in proceeds of crime. realm. StAR organized the first ever Encouraging figures also emerged Global Forum on Asset Recovery from an engagement with Somalia I(GFAR) where over 250 participants where the Central Bank of Somalia representing 26 jurisdictions as well was able to recover US$23 million. as international organizations, civil so- Additionally, StAR carried out dialogues ciety and media expressed renewed with relevant Moldovan authorities to commitment to global asset recovery. ensure the pursuit of US$1 billion Cohosted by the United Kingdom and in assets associated with a high-pro- the United States as an outcome of the file 2014 bank fraud, corruption, and London Anti-Corruption Summit held in money laundering scheme. This is con- May 2016, this forum allowed nations to sidered to be the largest bank fraud share best practices; provide technical relative to the size of the economy training to asset recovery practitioners; registered to date globally and is one support capacity building initiatives; of the highest profile issues in Moldova and, most importantly, provided the given its extraordinary impact on the opportunity for over 100 bilateral and national budget and repercussions felt multi-jurisdictional meetings to make across the public and private sector. progress on significant asset recov- Aside from this, StAR built on its ery cases. StAR worked closely with asset recovery efforts through a combi- GFAR’s four focus countries (Nigeria, Sri nation of country engagements, policy Lanka, Tunisia, and Ukraine) to prepare influence, partnerships and regional the asset recovery case consultation activities, knowledge and innovation, and bilateral meetings that were orga- as well as through advocacy and nized during GFAR. communications. GFAR also provided a platform for Country engagements, which are the signing of a new significant MOU a major component of StAR activities, between Nigeria, Switzerland, and the are typically multi-year programs aimed World Bank, which set out the return of at addressing the basic capability of US$321m of recovered assets. countries to undertake asset recovery Aside from this step in strength- and to provide technical assistance for ening international asset recovery them to advance cases. In 2017, StAR work, StAR’s support to countries led responded to the needs of countries to substantial stolen asset recovery across five continents by providing actions. Most notably, StAR’s sup- technical assistance such as advice to port in facilitating investigations was asset recovery practitioners, introducing
StAR Annual Report: January–December 2017 3 StAR’s work is built on five pillars
1 Empowering Countries to trace and recover stolen assets
2 Promoting Innovation and global best practices
3 Advocating International Standards to recover stolen assets
Fostering Partnerships among government authorities, private 4 sector and civil society domestically and internationally Communicating StAR’s knowledge activities, experience and 5 results and raising awareness about asset recovery issues
new legal tools for asset recovery (e.g. to UNCAC, while it also arranged sev- Guidelines for Efficient Asset Recov- non-conviction based forfeiture), ca- eral side events and numerous bilateral ery at the 2017 CoSP in Vienna. This pacity building for financial investiga- meetings at these gatherings to provide tool offers a step-by-step guide to tions (e.g. open source investigations, briefings on StAR work. StAR engaged governments seeking to improve inter- electronic evidence, digital forensics, actively with the G20 Anti-Corruption national cooperation and coordination etc.), building capacity to implement Working Group (ACWG) and cooper- in the fight against funds illicitly ac- the United Nations Convention against ated closely with the G7 countries on quired by politically exposed persons. Corruption (UNCAC), and coordinating financial transparency, asset recovery StAR maintained its role as a crucial effective management and disposal of and beneficial ownership. Additionally, stakeholder resource by updating seized and confiscated assets. StAR StAR contributed to the Egmont Group, the extensive asset recovery watch also helped countries enhance capaci- INTERPOL, and UNODC. database which include cases from almost 140 countries on completed and active asset recovery efforts as well as the information in the Legal Overall, 2017 was a year of consolidation Library on the TRACK website. StAR of previous achievements, growth and is currently developing and finalizing other knowledge products which will expansion for StAR. be launched in 2018. On the institutional front, StAR team held a retreat at the end of 2017 to fol- low up on recommendations of the ties to establish effective systems for StAR also worked with regional and Management Committee to discuss an the recovery of assets via legal advice, multilateral organizations to foster more updated work plan up to end of 2020 leading to the adoption of new laws. effective international cooperation, pol- with renewed focus on knowledge de- In the policy realm, StAR worked icy, and approaches to asset recovery. In velopment alongside StAR’s numerous closely with the UNCAC, Implementa- addition to GFAR, StAR also expanded country engagements. tion Review Group (IRG), and Working its cooperation with regional practitioner Overall, 2017 was a year of con- Group on Asset Recovery (ARWG). networks such as ARINEA, ARIN-AP, solidation of previous achievements, StAR participated in the deliberations CARIN, and RRAG. growth and expansion for StAR. This of the UNCAC IRG, the annual meeting StAR contributed to knowledge report will present the activities, ac- for the Working Group, and prepared and innovation through publications complishments, and progress of StAR and facilitated a full-day special event at and initiatives, including the launch throughout the year as well as the chal- Conference of the States Parties (CoSP) of an online tool on the Practical lenges it encountered.
4 StAR Annual Report: January–December 2017 10 YEAR ANNIVERSARY Global Reach of StAR Initiative: Countries participating in StAR Events and Engagements
StAR has made a valuable contribution to the asset recovery capacities of beneficiary countries: It has facilitated cooperation among States and other actors, contributed to knowledge generation in the field, and made progress in raising awareness on the topic.
Our “We have recovered stolen funds about US$200,000 using the training “The training I got stakeholders techniques acquired from StAR activities. [on] tracing hidden say... We have taken two government officials assets has helped to court for illicit enrichment and living me in recovery of beyond their means.” stolen assets as well as proving offence of illicit enrichment in my country […].” “Guidance provided by StAR already has [been] placed in some policy papers in my country.”
The StAR Initiative has engaged with more than 100 countries to promote the recovery of stolen assets
StAR Annual Report: January–December 2017 5 StAR’s Work Streams
StAR’s work is divided into different areas:
Country Policy Partnerships Knowledge & Advocacy & Engagements Influence Innovation Communications
The StAR work-plan for 2015 to 2018 identified country engagements and policy influence as critical components for ensuring that StAR can effectively support countries in their efforts to recover corrupt assets. The following sections provide further insight into StAR’s work, its activities, and the impact of its work.
6 StAR Annual Report: January–December 2017 Country Engagements
BACKGROUND scoping mission, an assistance plan ountry engagements is then prepared and agreed with the 20 continued to constitute requesting country. active country approximately two thirds Country engagements are designed engagements of StAR’s activities. The as multi-year programs, aimed at both team had 20 active country addressing the basic capability of coun- Cengagements and carried out techni- tries to undertake asset recovery and cal activities in 21 countries. StAR’s assisting to advance cases. Therefore, country engagements include different they often begin with training and then activities based on the needs of the addressing the needs of the countries. requesting countries. A multitude of Those needs may include investigative training events were delivered at the techniques, drafting new legislation, Muti-year country international, regional, and national and other requirements. levels on topics such as domestic co- Engagements cover a range of di- engagements ordination, international cooperation, verse activities such as: mutual legal assistance for asset recov- • tactical analysis and establishing an ery, financial investigations, including asset recovery strategy; the effective use of open source, as well as the prevention of IFFs and the • financial investigation techniques, management and disposal of seized cross jurisdictional investigations, and confiscated assets. open data investigations; StAR works with financial intelli- Generic Case- • asset and income disclosure; gence units, law enforcement, public capacity- related prosecutors, magistrates, ministries • forensic audits preparatory to cases; building of foreign affairs, finance and justice • case management advice (e.g. mu- officials across five continents. tual legal assistance or other interna- Engagements typically begin with a tional cooperation requests); scoping mission assessing the needs STAR of the requesting country. In 2017, • facilitating contacts with other juris- METHODOLOGIES StAR received and followed up on dictions through “quiet diplomacy”; new or updated requests from the • mentorship on the ground to address following countries: Colombia, The specific issues (e.g. placement of a Traditional Gambia and Mexico. Based upon the training workshops
Placement of mentors
Practical facilitation of coordination and cooperation UNODC Workshop in Myanmar
StAR Annual Report: January–December 2017 7 STAR IN FRAGILE, CONFLICT, AND VIOLENCE (FCV) SETTINGS: SOMALIA
The collapse of national systems and institutions in million has been added to the Central Bank’s reserves Somalia in 1991 led to the suspension of operations with StAR assistance. by the Central Bank of Somalia (CBS) and the loss of StAR assisted Somalia in the development of an control over official Somali accounts held in foreign fi- asset recovery strategy, including policy considerations nancial institutions. With the resumption of operations on the management of recovered assets. Under the in 2013, the CBS sought to identify and recover these Asset Recovery Guidelines for the CBS (developed assets with the assistance of StAR. with the assistance of StAR and approved by the StAR is currently assisting the CBS in contacting Financial Governance Committee (FGC), recovered approximately 30 international financial institutions funds are to be held as CBS reserves in designated believed to hold or have held legacy CBS accounts, Asset Recovery accounts with withdrawals only for including former World Bank project accounts. In addi- designated purposes, and with transparent account- tion to facilitating introductions with appropriate coun- ing to the FGC. StAR has also provided guidance to terparts within the international financial community, Somalia on good practices in engaging private sector StAR is providing guidance to the CBS on ensuring entities in asset recovery actions, an area that has the management of recovered assets is handled with raised significant concerns among the international transparency and accountability. To date, over US$23 donor community.
mentor in Sri Lanka for financial in- asset recovery office and subsequent vestigation and preparation of priority amendment. Once the asset recovery cases for GFAR); office was set up, StAR started pro- viding detailed advice on drafting the US$23 • facilitating domestic cooperation. regulation on the management of seized and confiscated assets. StAR also is- million ACTIVITY/OUTPUT sued multiple rounds of comments to added to the Central Bank authorities on draft legal initiatives that of Somalia’s reserves with Based on the descriptions above, StAR could affect asset recovery (especially StAR assistance delivered a range of different activities related to the 2014 bank fraud).2 One and services to requesting countries other key policy issue on which StAR in 2017. The following are examples of has worked in Moldova since 2014 was of assets, international cooperation in StAR’s activities: related to the Moldova World Bank de- asset recovery, and management of velopment policy operation.3 As a result returned assets. StAR also facilitated a Case-related, legislative and institu- of this program, Moldova launched on roundtable to discuss actions required tional support in Moldova. The Mol- 1 January 2018 an electronic filing and for active asset recovery and next steps dova StAR engagement in 2017 focused verification system for asset declaration. for development of asset recovery on several dimensions related to asset capacity in Myanmar. The workshop recovery: First, StAR convened regular UNCAC implementation awareness built on an earlier workshop held in meetings with the senior management raising on asset recovery in Myan- April 2017, gathering participants from of key stakeholders (heads of Anti-Cor- mar. StAR organized and presented at a the Union General Attorney’s Office, ruption Prosecutor’s Office (ACPO) UNODC Workshop on Asset Recovery the Anti-Corruption Commission, the and National Agency on the Recovery held on 11-12 July 2017. The purpose of Anti-Financial Crime Division and the of Proceeds of Crime (ARPC), and the the workshop was to increase capac- Division of Transnational Crime of the Central Bank Governor) to ensure the ity in Myanmar to implement Chapter Myanmar Police Force, the Bureau of pursuit of assets associated with the V of UNCAC on Asset Recovery and Special Investigation, and the Supreme 2014 US$1 billion bank fraud and money engage in international cooperation Court to discuss prevention of illicit fi- laundering scheme through civil and relating to asset recovery and prepare nancial flows and asset recovery. criminal proceedings in foreign jurisdic- for the second cycle of review of imple- tions. The focus of this dialogue was mentation of UNCAC. StAR delivered Coordination for effective manage- to follow up on a forensic audit of the presentations on international asset ment and disposal of seized and fraud, as it presented the greatest op- recovery trends and developments, the confiscated assets in Nigeria: The portunity in terms of recovery through asset recovery process and avenues for workshop was organized by the Office criminal and civil means.1 Second, StAR recovering assets, strategic consider- of the Attorney General on 3-4 July 2017 provided advice to the Moldovan author- ations for developing and managing a bringing together the relevant agencies ities on the draft law establishing the case, securing of evidence and tracing dealing with asset recovery and asset
8 StAR Annual Report: January–December 2017 management. StAR led the workshop discussions based on recently published LEVERAGING MLA study on the management and disposal GUIDELINE IN of seized and confiscated assets. StAR MONGOLIA held two mentoring sessions on 5-6 July 2017 for staff of the Economic and StAR assisted the author- Financial Crimes Commission (EFCC) ities in Mongolia through and the Independent Corrupt Practices several workshops and and Other Related Offences Commis- consultations in developing sion (ICPC). a guideline on mutual legal Discussions during the workshop assistance in 2015. 300 addressed the respective roles and copies of the guideline experiences of agencies in asset were distributed to prac- management. The counterparts also titioners. The Prosecutor presented on the Proceeds of Crime bill General Office used the currently under review at the National guideline to organize train- Assembly, as well as the proposed In- ings for 52 prosecutors and teragency Central Asset Management law enforcement officials in Committee. The mentoring session 2016, and for over 80 pros- for the EFCC focused on the issue of ecutors in different districts court orders for seizure and confiscation and in the capital in 2017. and challenges with regard to interim management of assets. The mentoring session for the ICPC included discus- means of assistance prior to the prepa- sions on record-keeping and drafting ration of a formal request to ensure of court orders. StAR was involved that all details required to facilitate the Increasing efficiency of MLA in Gua- provision of assistance are included in in finalizing a temala: StAR conducted a workshop the request. It took place in Guatemala diagnosis of the on international cooperation and drafting City from 31 May–01 June 2017 with of requests for MLA to prosecutors. The participants from anti-corruption pros- financial disclosure workshop was requested by Guatemala ecution services in Guatemala. and conflict of in the framework of StAR’s country Support for reform of the financial engagement to improve international interest framework disclosure and conflict of interest cooperation and their response rate to framework in Argentina: After a for Argentina. MLA requests, including using informal scoping mission StAR was involved
in finalizing a diagnosis of the finan- cial disclosure and conflict of interest framework to be included in a World Bank Transparency Diagnosis. StAR further supported the reform of the financial disclosure and conflict of in- terest framework for the Executive by: (i) helping redesign the disclosure form for the new e-filing system, (ii) present- ing at Open Government Partnership (OGP) discussions with civil society to gather input for the reform and share international good practices; (iii) sup- porting a legal review and drafting of new legislation at the anti-corruption office (OA). StAR also conducted a scoping mission with the judiciary to support set up of financial disclosure Effective management and disposal of seized and confiscated assets is a unit for judges. challenge in many countries.
StAR Annual Report: January–December 2017 9 SPOTLIGHT ON SRI LANKA WORKING ON LEGAL REFORM, CAPACITY FOR FINANCIAL INVESTIGATIONS AND FACILITATING INTERNATIONAL COOPERATION
In the build up to GFAR, StAR worked closely with Sri Lankan counterparts—primarily through the Presiden- tial Task Force for Recovery of Illegally Acquired State Assets (START)—as one of the four GFAR focus countries. Assisting to enact sound asset recovery laws: StAR started discussions regarding developing a Proceeds of Crimes Act and held preliminary con- sultations regarding reforming the asset declaration system. The work in these areas started in 2018. Building capacity to conduct asset recovery cases: Introduction to electronic evidence, and digital forensics Workshop in Sri Lanka: StAR conducted a workshop in cooperation with the World Bank and the UNODC Cybercrime project, for relevant national Digital forensic workshop authorities in Sri Lanka. The workshop took place in Colombo from 26-27 April 2017 gathering participants from the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), Criminal Investiga- tion Department (CID), Financial Crimes Investiga- tion Division (FCID), and the Financial Intelligence Unit. The workshop built on previous StAR capacity building workshops held in 2016 and participants gained knowledge on open source information, basics of computers and internet, collecting and handling of electronic evidence and digital forensic evidence, procedural, evidentiary and jurisdictional issues related to collecting electronic evidence culminating in a prac- tical training. In July 2017 CID officers who attended the workshop for the first time seized crucial elec- tronic intelligence and evidence from mobile devices Officials from Singapore and U.K. explain their in relation to a transnational case of bank e-heist. mutual legal assistance process during workshop in StAR also placed a mentor for financial investiga- Sri Lanka (October 2017). tions from the Serious Fraud Office of New Zealand in Sri Lanka from October to December 2017 to work primarily with START, CID, FCID and CIABOC and requests and identify ways of improving formal and assist in building capacity in preparation for GFAR. informal international cooperation; to enhance domes- tic inter-agency cooperation and coordination amongst Facilitating international cooperation: StAR Sri Lankan government officials involved in asset organized a Workshop on Mutual Legal Assistance recovery and in formal and informal cooperation with (MLA) for Asset Recovery from 18-20 October 2017. local and foreign counterparts; to provide an oppor- Participants came from the Ministry of Justice, tunity to interact with MLA experts from requested Attorney General’s Department, CIABOC, CID, FCID countries (Singapore and UK) and enhance under- and Financial Intelligence Unit. The objectives of the standing of their requirements for providing MLA. workshop were to improve capacity for drafting MLA
10 StAR Annual Report: January–December 2017 In addition to the aforementioned ex- StAR also raised awareness on the amples of StAR country engagements, legal concepts of the NCB forfeiture the initiative has also helped countries law in sectors of the Costa Rican enhance capacities to establish effective society. 3 systems for the recovery of assets. In • Guyana: New legislation providing countries adopted laws 2017, two countries adopted laws with for non-conviction based asset re- StAR support and further legal advice was with StAR support covery and for the establishment provided to an additional five countries: of a States Asset Recovery Agency • Argentina: StAR provided input was adopted in April 2017, following and comments to in drafting a new StAR support in 2016 for the devel- 5 Ethics Law. opment of the draft legislation and participation in public hearings. received legal advice • Colombia: Following technical ad- during legislative reform vice provided to the draft amend- • Moldova: StAR provided advice to process ment of the Asset Forfeiture bill the Moldovan authorities that con- (Extinción de Dominio) to the At- tributed to the law establishing the
In longer-standing contacts, advances have been possible when StAR’s work has coincided with the political will to pursue asset recovery or legislative amendments. process for the recruitment of an adviser to develop a Proceeds of Crimes Act was finalized. torney General Office of Colombia asset recovery office and continues in November 2016, the draft amend- to provide support in drafting the • Tanzania: StAR provided comments ment was adopted by the Colombian regulation on the evaluation and on the Proposed amendment to the Government by means of law No. management of seized assets and Proceeds of Crimes Act (POCA) Bill 1849 on 19 July 2017. other laws related to asset recovery. to bring in, Non Conviction Based (NCB) regime as well as and asset • Costa Rica: StAR conducted a mis- • Sri Lanka: During a mission in Oc- management provisions. sion to Costa Rica in July to provide tober 2017, discussions took place technical advice on draft of the NCB and a roadmap was developed for These short descriptions illustrate the forfeiture law that was being dis- initiating the drafting process in the range and success of differing trends in cussed in the Legislative Assembly. first quarter of 2018. The selection StAR’s country engagements in 2017. They demonstrate how in longer-stand- ing contacts, advances have been pos- OTHER WORK WITH GFAR FOCUS COUNTRIES sible when StAR’s work has coincided with the political will to pursue asset recovery or legislative amendments. StAR continued to support Tunisia’s efforts to recover the assets of the Ben Ali regime. In particular, StAR held training workshops with the UNODC country office for the incoming prosecutors and judges of the ADDITIONAL ACTIVITIES new financial crimes unit in the Ministry of Justice. StAR also participated in national coordination meetings between the Ministry of Justice and the International coordination and cooper- Ministry of Public Domain, that has taken over the asset recovery mandate. ation is an important aspect of StAR’s The Minister of Public Domain attended GFAR as head of delegation. country engagements. StAR provided StAR worked closely with Ukraine throughout 2017 in preparation of guidance and practical advice in devel- GFAR with the different relevant authorities pursuing cases abroad. In oping mechanisms for more efficient addition, StAR delivered several capacity-building workshops, including domestic and international cooperation sessions on international standards on asset recovery and working with in asset recovery. For example: open data at the OECD sponsored program for the Initial Training on Asset Recovery to the newly created Asset Recovery and Management Bay of Bengal Initiative for Multi-Sec- Agency (ARMA). toral Technical and Economic Coop- eration (BIMSTEC). StAR delivered a
StAR Annual Report: January–December 2017 11 Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). workshop on international cooperation Among Law Enforcement Authorities demonstration of how the module focused on asset recovery for officials for Effective Asset Recovery, StAR works, including to discussions on the of the BIMSTEC Member Countries presented in and moderated different collaboration on the implementation (Bangladesh, India, Nepal, Sri Lanka, sessions of the meeting and facilitated of the online version when complete. Thailand). The workshop took place the discussions in different sessions in Dhaka, Bangladesh from 30 May which focused on national coordination OUTCOMES to 1 June 2017 and facilitated interna- and international cooperation to draw tional cooperation amongst BIMSTEC conclusions that were presented to the Through its country engagements StAR member countries in accordance with ACT-NET Meeting on 19 August. has helped the asset recovery process of international conventions, enhanced various countries in the following ways: German Technical Cooperation the capacity of domestic inter-agency group (GIZ): Developing online finan- • Advised and assisted the authorities cooperation and coordination amongst cial investigation training. The StAR in several countries with the prepara- Bangladesh government officials in- team traveled to Bonn, Germany from tion and adoption of new legislation. volved in developing asset recovery 4–7 September, 2017 to participate in a strategies and avenues of informal co- • Provided practical support for coun- workshop hosted by the German Tech- operation with local and foreign coun- tries in setting up effective asset nical Cooperation group (GIZ) to develop terparts. The workshop was attended recovery institutions. an online financial investigation training. by participants drawn from relevant StAR developed an innovative module • Gave practical help to increase the sectors such as financial intelligence, on using anti-money laundering tools to capability and skills of officials in banking, law enforcement, customs, fight corruption (“follow the money”) conducting asset recovery cases. and anti-corruption authorities. to build capacity to prevent, detect, • Facilitated and fostered international APEC Workshop on Enhancing Co- combat and recover assets from these cooperation. operation Among Law Enforcement illicit activities. GIZ proposed to facili- Authorities for Effective Asset Re- tate an online transfer of this module to These trainings have led to enhanced covery. On 18 August 2017, StAR par- reach a wider audience. The workshop capacity of relevant entities in carrying ticipated as a co-organizer in the APEC continued with these discussions and out asset recovery activities. Feedback Network on Anti-Corruption Authori- focused on the actual design process from counterparts in several countries ties and Law Enforcement Agencies with the technical team from the GIZ indicates that technical support from StAR (ACT-NET) Meeting. In addition to being training academy. The StAR role was has improved and facilitated their com- involved in preparations of the APEC to provide a substantive contribution munications with other jurisdictions and Workshop on Enhancing Cooperation to the background documentation and increased their chances for asset recovery.
12 StAR Annual Report: January–December 2017 Policy Influence
Attorneys general of Guatemala, the Island of Jersey, Sri Lanka, and Ombudsman of the Philippines at StAR Day special event during UNCAC CoSP in November 2017.
BACKGROUND StAR has also used its involvement the commitment to, “strengthen the with national authorities and non-gov- recovery and return of stolen assets.”4 tAR believes that asset re- ernmental organizations to promote The Addis Ababa Action Agenda stated covery can only succeed action on asset recovery. For exam- that “we support the Stolen Asset Re- in individual countries if it ple, it continued its cooperation with covery Initiative of the United Nations is backed up by the collec- Switzerland and the International Cen- and the World Bank, and other interna- tive will and action of the ter for Asset Recovery (ICAR) of the tional initiatives that support the recov- Sinternational community to create both Basel Institute on the development of ery of stolen assets. We further urge domestically and at the international guidelines for efficient asset recovery regional conventions against corruption level a legal and policy environment in the context of the Lausanne process be updated and ratified. We will strive more conducive to the recovery of to prepare the commentaries and an to eliminate safe havens that create stolen assets. online tool on the Guidelines which incentives for transfer abroad of stolen StAR therefore works in interna- was launched in 2017 (see section on assets and illicit financial flows.” tional fora and with organizations to in- CoSP below). fluence policy. In addition, StAR seeks The Sustainable Development Goals ACTIVITY/OUTPUT to affect the attitudes and actions of and the Addis Ababa Agenda for Ac- national governments in the develop- tion of the 3rd International Conference In 2017 StAR worked with the following ing and developed world to press for on Financing for Development also organizations on international standards policy changes. StAR has been very demonstrated how asset recovery is and obligations: involved with the decisive gatherings now being considered as part of de- and forums that are critical in shaping velopment and not merely a matter for UNCAC approaches to the fight against cor- law enforcement. The Sustainable De- ruption such as the Conference of the velopment Goals which were adopted Conference of the States Parties States Parties to UNCAC (CoSP) and by 193 countries of the UN General (CoSP). The seventh session of the its subsidiary bodies. Assembly in September 2015 included CoSP to UNCAC was held in Vienna
StAR Annual Report: January–December 2017 13 from 6-10 November 2017, and adopted stakeholders to engage in discussions and requesting States and interna- eight resolutions and one decision, in- over various topics related to asset re- tional organizations following the cluding on asset recovery (7/1 Strength- covery, present new tools, studies and Lausanne seminars, will help to ening MLA for international cooperation solutions and outline the challenges and overcome difficulties in the asset and asset recovery), as well as on cor- expectations for the future. The day recovery process. ruption in cases involving vast quantities event included the following sessions: • A session showcasing ongoing work of assets (7/2 Preventing and combating • A High-level Conversation on As- carried out by StAR, UNODC and corruption in all its forms more effec- set Recovery, including attorneys other partners on new resources, tively, including, among others, when general of Guatemala, Jersey, Sri tools, and knowledge products made it involves vast quantities of assets, Lanka, and the Ombudsman of the available to practitioners and policy- based on a comprehensive and multi- Philippines, examined the asset re- makers, including international and disciplinary approach). The Conference regional practitioner networks which provide platforms that can comple- ment and facilitate cooperation in The StAR Initiative plays a prominent role in advance of the MLA process. the sessions of the UNCAC Asset Recovery • A session on best practices on Working Group. asset management featuring a panel discussion on good practices states parties have implemented and challenges encountered in the was attended by approximately 1800 covery landscape and the lessons management and disposal of recov- participants from 158 States parties and learned and discussed policies that ered assets. a large number of inter-governmental can help to overcome the obstacles • A panel discussion looking at the and non-governmental organizations.5 in the process of tracing and return- role civil society can play in over- StAR prepared and facilitated a full- ing proceeds of corruption. coming challenges in the asset re- day special event on asset recovery • An interactive panel discussed how covery process. Speakers from both on the margins of the CoSP. The spe- the Guidelines for the Efficient Re- government and civil society dis- cial event took place on 7 November covery of Stolen Assets, developed cussed how CSOs’ relationship with 2017 and provided a platform for StAR, by experts from around 30 requested government and law enforcement its partners, practitioners and other
International Expert Meeting on the management and disposal of recovered and returned stolen assets, including in support of sustainable development
14 StAR Annual Report: January–December 2017 can contribute to the flow of rele- crime and recovering stolen assets.” of Recovered and Returned Assets at vant information, how CSOs can The session led to concrete recommen- the International Level” and “Use of play a role in highlighting the impact dations which were reflected in the final Settlements and their Implications on the of corruption, and how they can “Bangkok Statement on Implementa- Recovery and Return of Stolen Assets,” monitor returned assets. tion of UNCAC in ASEAN 2016-2020,” and also contributed to the preparation which captures the commitments of of the final report of the workshop. StAR also made presentations and the participants. interventions under relevant agenda Conference on Promoting Interna- items on Asset Recovery and Techni- tional Co-Operation in Combating cal Assistance and organized bilateral SDGs, Illicit Financial IFFs and Enhancing Asset Recov- meetings on the sideline. In addition, Flows and Financing for ery to Foster Sustainable Develop- StAR held briefings on GFAR prepa- Development ment—Abuja IFF/AR. StAR provided rations for focus countries, invited ju- policy input at the high-level IFF/AR International Expert Meeting on the risdictions and civil society and held a Conference, which took place in Abuja, management and disposal of recov- consultation meeting on the lessons Nigeria from 5–7 June 2017. Organized ered and returned stolen assets, in- learned from AFAR. by the Presidential Advisory Commit- cluding in support of sustainable tee against Corruption, the conference Working Group on Asset Recovery. development. StAR supported the gathered roughly 150 participants from The StAR Initiative plays a prominent organization of the International Expert Africa and other parts of the world, with role in the sessions of the UNCAC Meeting on the management and dis- the participation of the Acting Presi- Working Group on Asset Recovery posal of recovered and returned stolen dent, the Minister of Foreign Affairs, (ARWG) ), through substantive contri- assets, including in support of sustain- the Attorney General and the Minister butions to its background documenta- able development, in cooperation with of Finance, as well as regional bod- tion, preparations of plenary and side the Governments of Ethiopia and Swit- ies, intergovernmental organizations, meetings, and a presentation under zerland, which was held in Addis Ababa, UN agencies, financial institutions, the relevant thematic item 5 on tech- Ethiopia from 14–16 February 2017. The academia, the private sector and civil nical assistance and capacity building. workshop was held pursuant to the 2030 society. The Eleventh Session of the Working Agenda for Sustainable Development The conference focused on policy Group (24-25 August 2017 in Vienna) and the Addis Ababa Action Agenda of measures, tools and strategies to effec- discussed proactive and timely sharing the 3rd International Conference on Fi- tively tackle illicit financial flows (IFF), of information, in accordance with arti- nancing for Development (Addis Ababa, strengthen asset recovery, enhance cle 56 of the Convention, and good prac- 13–16 July 2015), which encourages the international cooperation, and to raise tices for identifying victims of corruption international community to develop good the awareness around the use of re- and the parameters for compensating practices on asset return. The meeting turned assets for sustainable develop- them, including as part of the disposal of recovered assets under its agenda item 4(a) and 4(b). UNODC and the World Bank are among the UNCAC Implementation Review Group. StAR participated in the Eighth five international organizations (OECD, IMF Meeting of the Implementation Review and FATF) that are invited to participate in Group of UNCAC, which took place from 19-23 June 2017 in Vienna, and the G20 ACWG meetings as observers. briefed the Group on technical assis- tance activities in support of the imple- mentation of chapter V (asset recovery) brought together for the first time dif- ment, linking to the Addis Ababa Action of UNCAC. ferent constituencies working on asset Agenda, including the International Implementation of UNCAC in ASEAN recovery and return from the perspective Expert Meeting on the management 2016-2020. As part of the conference of the implementation of UNCAC and and disposal of recovered and returned to create a Regional Platform on the Financing for Development angle stolen assets, which was held in Addis “Fast-tracking Implementation of UN- (89 experts from 34 countries). It was Ababa in February 2017. CAC for Economic and Social Develop- a first step towards developing good The Abuja Declaration, which was an ment in Southeast Asia,” which was practices on seized and confiscated as- outcome of the conference, included a held in Bangkok from 31 January–03 sets and on asset return, in response set of recommendations for each key February 2017, StAR facilitated a Work- to the mandates mentioned above. The topic discussed. Participants called on ing Group discussion focusing on “Pre- StAR team, made presentations during African Countries and the International venting money laundering, preventing sessions on “Current State of the Inter- Community in general to sustain dia- and detecting transfer of proceeds of national Debate on the Management logue and action against IFF.
StAR Annual Report: January–December 2017 15 Special meeting of ECOSOC on inter- national cooperation in tax matters. STAR AWARD OF EXCELLENCE StAR delivered a presentation on asset recovery and illicit financial flows (IFFs) During The 24th Plenary of the Egmont at the Special meeting of ECOSOC on Group of Financial Intelligence Units (FIUs) international cooperation in tax matters which was held in Macao, SAR from 2-7 held in New York on 7 April 2017. The July 2017 a StAR Award of Excellence was presentation contributed to discussions presented for the first time year to a joint on IFFs, tax, asset recovery and an- case presented by FIUs of Lebanon and ti-corruption efforts. Tunisia, for their success in asset recovery in a corruption case. All entries were recog- G20 nized and all Egmont Group members were StAR participated in the G20 Anti-Cor- encouraged to continue sharing their best ruption Working Group (ACWG) held cases in future competitions in Berlin, Germany from 23–25 Jan- uary 2017, and Vienna, Austria from 12–15 September 2017, co-chaired by asset recovery was promoted. Two reviewed the latest developments on Germany and Brazil. The meeting ad- key outcomes of StAR participation in beneficial ownership, in the light of re- dressed seven key issues laid out in the GAFILAT XXXV were related to next cent developments such as publication Action Plan and Implementation Plan steps, i.e. discussions to define dates of the so-called “Mossack Fonseca and for 2017-18. UNODC and the World on an asset recovery workshop and Paradise Papers.” Further work will be Bank are among the five international capacity-building activities, as well as ongoing during 2018. organizations (OECD, IMF and FATF) for a financial disclosure workshop with that are invited to participate in the G20 civil society to discuss on-going activ- ACWG meetings as observers. ADDITIONAL ACTIVITIES ities and reform plans. G7 In addition to StAR’s on-going work OECD and FATF StAR cooperated closely with G7 coun- with the above organizations, it is in- StAR has developed close working re- tries on issues related to financial trans- volved with other international bodies, lationships with the OECD and FATF, parency, as well as asset recovery and including: beneficial ownership. In particular, StAR worked with G7 countries to prepare the Global Forum on Asset Recovery, StAR has developed close working and collected experiences of G7 prac- titioners on a lessons learned note for relationships with the OECD and FATF, the Arab Forum on Asset Recovery. contributing to research and publications. Financial Action Task Force in Latin America (GAFILAT). GAFILAT was created in 2000 as a regionally based in- contributing to research and publica- • The Egmont Group. In 2017, StAR tergovernmental organization comprised tions through its participation in relevant attended the Egmont Plenary from of 16 countries from South, Central working groups. Additionally, World 29 January to 3 February in Doha, and North America, in order to combat Bank and UNODC participate in each Qatar. StAR had an active role in money laundering and terrorist financing organization’s plenary meetings held the Information Exchange on ML/ through continuous improvement of the throughout the year. TF Working Group (IEWG) meet- national policies against both offenses ing, during which, the preliminary and the enhancement of different coop- International Expert Group report with findings related to the eration mechanisms among its member Meeting on Beneficial joint WB–UNODC-Egmont Group states. StAR participated as observer Ownership Transparency study on Financial Intelligence Units at the XXXV Plenary Meeting of Rep- StAR contributed to and participated in Working with Law Enforcement and resentatives and Working Groups of an international expert group meeting Prosecutors was presented and the the Financial Action Task Force in Latin on “Beneficial Ownership Transpar- next steps discussed. The StAR America (GAFILAT), which was held ency,” organized by UNODC and held team also held a brief meeting with in Buenos Aires, Argentina from 24- in Vienna from 3–4 October 2017. Pur- representatives of the Argentine FIU 29 July 2017. StAR work in the region suant to a mandate in the St. Petersburg regarding possible StAR assistance. specifically on Non-Conviction Based Statement, adopted at the Sixth Ses- Further talks with representatives Forfeiture and strategies for effective sion of the UNCAC CoSP, the meeting of the StAR Initiative and various
16 StAR Annual Report: January–December 2017 Opening of ARIN-AP Annual Meeting.
agencies and ministries in Argentina in order to more effectively and ef- • Contributed to policy dialogue at were scheduled. This report was ficiently assist countries with their international level, e.g., StAR publi- adopted following 2017 Egmont implementation of UNCAC and other cations and presentations informed Group Plenary in Macao. At this ple- regional and international anti-corrup- discussions, including on settlement nary, a representative from Namibia tion obligations. StAR contributed to of corruption cases during Asset Re- informed StAR that, as a result of discussions including on capacity covery Working Group and UNCAC having used the World Bank meth- gaps identified through the UNCAC CoSP. odology to conduct a national risk as- Implementation Review Mechanism. • Gained international recognition sessment of money laundering and On 22 August StAR attended and through UNCAC CoSP resolution terrorism financing risks, Namibia presented at the 25th APEC An- on asset recovery, which specifi- uncovered a significant trade-based ti-Corruption and Transparency cally recognized the role of StAR money laundering scheme. StAR Working Group (ACTWG) Meeting. and requested StAR to continue to and Namibia are currently discussing The meeting focused mostly on ac- provide and develop capacity-build- technical assistance to support asset tivities of APEC ACTWG, plans for ing initiatives on asset recovery, recovery related to this case. future activities and deliverables, including knowledge products and reports of countries and international • APEC. Coordination Meeting with technical tools. organizations. As relevant bilateral International Organizations Anti-Cor- meetings with StAR clients and do- • Helped to advance high-level political ruption and Transparency Working nor countries were also organized. support and commitment to asset Group (ACTWG): On 21 August recovery (e.g. numerous statements StAR participated in a Coordination at high level segment of UNCAC Meeting with International Orga- OUTCOMES CoSP referring to StAR’s work as nizations: Connecting Donors to well as during GFAR). Anti-Corruption Capacity Building Due to its work at the international level, Needs. This meeting was designed StAR has helped secure the following to improve the supply and coordina- outcomes for policy relating to asset tion of capacity building assistance recovery:
StAR Annual Report: January–December 2017 17 Partnerships & Regional Activities
BACKGROUND GLOBAL FORUM ON ASSET RECOVERY n addition to those organizations From 4-6 December 2017, the for asset recovery efforts and civil mentioned in the section “Inter- StAR initiative supported the society organizations. GFAR also national Standards and Policy In- inaugural Global Forum on Asset dispensed with the typical geo- fluence,” StAR continued to work Recovery (GFAR), co-hosted by graphic groupings and combined with a growing number of regional the United States and the United the Group of Seven (G7), financial Iand multilateral organizations to foster Kingdom, gathering over 250 partic- centers and countries relevant for greater international cooperation on ipants representing 26 jurisdictions the asset tracing work necessary to cases, policy, and general approaches as well as international organiza- advance specific investigations in to asset recovery. tions, civil society and media. the focus countries based on their Beyond partnerships with practi- Organizing an event of this input and intense dialogue with tioners, StAR has also sought to de- magnitude required significant StAR advisors. The event led to velop ties with civil society organizations planning and effort. The GFAR promising results. (CSOs) in support of their advocacy event was the culmination of one Sri Lanka’s Attorney General objectives (through leverage of policy year of intense preparations with noted that GFAR allowed his coun- work, influence and representation), as co-hosts, focus countries as well try to advance their asset recovery well as in terms of capacity building. as invited jurisdictions, and civil efforts by fifteen years. For the society organizations. Apart from all first time, Sri Lanka held multi-ju- ACTIVITY/OUTPUTS aspects of the meeting itself, StAR risdictional meetings to discuss the team provided technical assistance movement of stolen assets across StAR participated in a range of events, on asset tracing investigations and borders for specific coordination on networks and organizations to en- asset recovery case preparations investigations. courage connections between practi- for the focus countries Sri Lanka, Thanks to direct engagements tioners—governmental and non-govern- Tunisia, Nigeria and Ukraine. As through GFAR and the momen- mental, the private sector, civil society the date got closer, for a period of tum built, Ukrainian officials were organizations and others—sharing around 6 weeks, virtually the whole able to advance numerous asset similar goals. StAR team was involved in organiz- tracing investigations with various ing GFAR. financial centers and strengthened 10th Practitioners’ Workshop In addition to providing a venue coordination with the U.S., UK and on the Return of Illicit Assets for over 100 bilateral and multi-ju- Switzerland among others. Tunisia of Politically Exposed Persons risdictional meetings to advance also built on previous work done (Lausanne X) case specific efforts, GFAR also through the Arab Forum on Asset In March 2017, StAR contributed to provided a forum for training and Recovery and followed up on its the Lausanne X seminar, organized discussion of emerging topics in pending asset recovery cases. by the International Center for Asset the field, such as best practices on Active civil society involvement Recovery, StAR, and the Government the use of technology in asset trac- from focus countries during GFAR of Switzerland. ing, while also providing a venue to also helped to set a standard for The Lausanne Process entails sem- identify country-specific capacity future engagement, as well as for inars particularly addressed to practi- building needs. GFAR was struc- follow up with officials upon return- tioners in the field of asset recovery. tured to break down bureaucratic ing home. Civil society leaders from They have been hosted regularly in silos. It uniquely brought together Ukraine were instrumental in pro- Lausanne/Switzerland since 2001, with policymakers with investigators viding training to ensure that their the objective of improving international and prosecutors, as well as high- lessons learned and successes can cooperation and coordination in the level political officials responsible be replicated. fight against funds illicitly acquired by
18 StAR Annual Report: January–December 2017 250 participants 26 jurisdictions represented
100+ “GFAR allowed Sri Lanka to advance their asset recovery efforts by fifteen years.” bilateral meetings —Hon. Jayantha Jayasuriya, Attorney General of Sri Lanka
“It is heartwarming to note that there is Efforts to further G20 priorities evidence of a renewed commitment to on transparency and accountability collectively identify the most effective were also incorporated into the ways to overcoming legal hurdles to asset GFAR structure. Building on the recovery and return, The Global Forum commitment of G20 members, par- on Asset Recovery (GFAR) in December ticipating jurisdictions such as Brazil, 2017 is one good example.” —President Italy, Latvia, Nigeria and Ukraine Muhammadu Buhari of Nigeria7 completed and United Kingdom State Department photo/ Public Domain updated guides on transparency of beneficial ownership and other jurisdictions such as Switzerland, Tunisia, India, New Zealand commit- ted to doing so. Similarly, other juris- dictions also published or updated guides clarifying national procedures on mutual legal assistance and asset recovery for publication at GFAR. All G7 members have expressed a recognition for the unique role that this process plays and the need for such an effort when countries undergo a dramatic change in po- litical leadership and must address longstanding corruption challenges. All information, including a fact sheet and the final GFAR Commu- nique can be found at: https://star. worldbank.org/star/about-us/ global-forum-asset-recovery-gfar. StAR coordinated case-related meetings at GFAR.
StAR Annual Report: January–December 2017 19 politically exposed persons. Noting that through the first seven Lausanne semi- nars, a number of recurring themes had Focal Points Network emerged, participants of Lausanne VIII in 2014 (90 experts from 30 countries for Asset Recovery and from several international organiza- tions) agreed on the “Guidelines for the Efficient Recovery of Stolen Assets” (the Guidelines). The main goal of the Lausanne X 234 131 seminar was the finalization of a (step- focal points countries by-step) guide, as mentioned in the recent UNCAC Conference of the States Parties resolutions, to support the prac- tical application and implementation of 40 72 the Guidelines. By drawing on global case meetings during cases discussed during practical experience participants iden- 2017 conference 2017 conference tified single steps of action in the asset recovery process. Lausanne X focused on investigations and communications Global and Regional The Global Focal Point Network on issues during investigations (Guidelines Practitioner Networks Asset Recovery (GFPN). The Global 3, 5, 6, 7 and 8) and developed the StAR has continued and widened Focal Point Network on Asset Recovery concrete steps for implementation of its cooperation with practitioner net- (GFPN) by StAR and INTERPOL was es- these guidelines. StAR team members works engaged in asset recovery and tablished with the objective of support- served as facilitators for the workshop confiscation: ing practitioners overcome operational and assisted in developing an online tool barriers associated with international for the Guidelines (please see below). cooperation in asset recovery. With the
RETURN OF US$321 MILLION OF ABACHA LOOT FROM SWITZERLAND TO NIGERIA DURING GFAR
GFAR provided a perfect venue for signing ceremony of a significant new Memorandum of Understanding between Nigeria, Switzerland and the World Bank Group for the return of US$321 million of stolen assets. The MOU captures the tripartite agreement on the World Bank’s monitoring role and the proposed modalities of the funds repatriation and disbursement, following a December 2014 Swiss court order that the funds be repatriated. The responsibility for the use of the funds is with the Federal Government of Nigeria. The Nigerian authorities requested the funds be used Signing the MOU, left to right: Ms. Ceyla to support a program of targeted cash transfers to poor Pazarbasioglu, Senior Director, Finance, and vulnerable Nigerians under the National Social Competitiveness and Innovation Global Practice, Safety Net Project financed by a credit extended by the World Bank; H.E. Abubakar Malami, Attorney- International Development Association. General and Minister of Justice, Nigeria; The parties have agreed to establish monitoring Ambassador Roberto Balzaretti, Secretary of framework for the use of the repatriated funds that will State, Director, Directorate for International Law, enhance transparency and accountability. To that end, Switzerland; Ambassador Pio Wennubst, Assistant the Federal Government of Nigeria will engage civil so- Director General, Head of the Global Cooperation ciety organizations to help monitor the use of the funds. Department, Swiss Agency for Development and The transfer is a good practical example of contribution Cooperation; Rachid Benmessaoud, Country Director of asset recovery to financing for development.8 for Nigeria.
20 StAR Annual Report: January–December 2017 These meetings also provided space for bilateral discussions among coun- tries and with StAR clients and donor countries. The meetings provided an opportunity to engage with a network of practitioners in different regions, to disseminate StAR’s knowledge products, and raise awareness about StAR’s activities. In addition to the above, StAR partners, UNODC and World Bank are involved with a number of other networks including: The Asset Recov- ery Inter-Agency Network of Southern Africa (ARINSA); The Group of Experts for the Control of Money Laundering (GELAVEX); The Financial Action Task Force in Latin America (GAFILAT); the Network for Integrity; The Asset Re-
© Interpol covery Inter-Agency Network for West With the Royal Canadian Mounted Police, INTERPOL and StAR hosted the Africa (ARIN-WA). 7th Global Focal Point Conference in Ottawa on 6–8 June 2017. Finally, in order to facilitate contact with various asset recovery networks, StAR complied a directory of asset INTERPOL Anti-Corruption & Financial ARIN-AP (Asset Recovery In- recovery networks which will be pub- Crimes (AFC) Unit and in cooperation ter-Agency Network- Asia Pacific). lished in 2018 (see Knowledge and with the Royal Canadian Mounted Po- StAR has observer status at ARIN-AP Innovation below). lice, StAR hosted the 7th Global Focal and was invited to attend and update Point Conference in Ottawa on 6–8 the Steering Committee and present June 2017. on emerging issues and on StAR activ- OUTCOMES The conference provided an oppor- ities at the Annual General Meeting of tunity to deliberate on the international ARIN-AP held from 26–28 September Through its work in forging and nur- developments in asset recovery, as 2017 in Tokyo, Japan. turing partnerships, StAR has helped well for the focal points to continue to asset recovery in the following ways: CARIN (Camden Asset Recovery build trusted relationships to enhance Inter-Agency Network). StAR also • Enabled and eased international international cooperation in asset recov- participated in the annual meeting of cooperation through the provision ery and to hold bilateral meetings. The CARIN held from 11–13 October 2017 of “good offices” to bring different 96 participants were comprised of the in Stockholm Sweden. parties together (e.g. GFAR). network’s focal points, anti-corruption authorities, and other law enforcement RRAG (The Asset Recovery Network • Enabled practitioners to identify and agencies involved in asset recovery established by GAFILAT countries). exchange good practices. from 45 participating countries and 5 StAR participated in the Fourteenth • Enhanced international cooperation regional networks. 40 bilateral meetings Meeting of the Asset Recovery Network (through involvement in the work of were held.6 of the Financial Action Task Force in Latin GFAR and the GFPN, in providing StAR has supported the Global Fo- America (Red de Recuperación de Acti- guidance and facilitating contacts). cal Point Network on Asset Recovery vos de GAFILAT - RRAG) as an observer (GFPN) in establishing a virtual plat- and keynote speaker on topics related • Maintained and established inter- form hosted on the secure website to the challenges of asset recovery in national networks (e.g. its work in of INTERPOL and accessible through Latin America and the Caribbean. The establishing and supporting RRAG). the secure communication protocols meeting took place in Ciudad de Guate- • Helped countries identify concrete offered by INTERPOL. This enables mala, Guatemala from 09-11 May 2017, actions to advance specific cases focal points authorized by their national attended by 40 participants involved in and topics in the international realm administration to exchange information non-conviction based confiscation and through GFAR, and to further main- and technical knowledge on corruption criminal prosecution cases of RRAG, tain momentum for these efforts by and asset recovery and to respond to including investigators, prosecutors, supporting the host nations of the the immediate needs for assistance financial intelligence from 19 member US and UK. from any other member country. states plus 5 international organizations.
StAR Annual Report: January–December 2017 21 Knowledge & Innovation
tAR has produced a range of publications, policy pa- PUBLICATIONS AVAILABLE LANGUAGE(S) pers, and guides for those involved in asset recovery. Getting the Full Picture on Public English, Spanish Policy papers are aimed at Officials: A How-To Guide to Financial Spractitioners from government agen- Disclosure (2016) cies, CSO’s, international organizations and others, to bring about changes in laws and regulations. Guides are de- Public Wrongs, Private Actions (2014) English, Ukrainian (Fact sheets signed to offer practical advice and in English, French, and Arabic) step-by-step instruction in pursuing asset recovery. Few and Far: The Hard Facts on Asset English In compiling its publications, StAR Recovery (2014) liaises widely with practitioners from the public and private sector, civil soci- Left Out of the Bargain (2013) English, French ety organizations and others. All StAR knowledge products are disseminated as widely as possible in a growing num- Politically Exposed Persons (2012) English, Russian, Spanish ber of languages through a variety of channels: online, at public events and Public Office, Private Interests (2012) English, French (Fact sheets in elsewhere. Arabic, French and Spanish)
ACTIVITIES On the Take (2012) English, French, Spanish
In response to requests and require- Tracking Anti-Corruption and Asset English ments, translations of our publications Recovery Commitments (2011) have continued to grow (see table). StAR’s Asset Recovery Watch Cases Identification & Quantification of the English Database, as well as its library of doc- Proceeds of Bribery (2011) uments from the G20, AFAR, GFAR and other forums made it an important resource for stakeholders and others Barriers to Asset Recovery (2011) English, Spanish, Arabic, interested in asset recovery. French (Fact sheets in English The StAR Corruption Cases database and Arabic), Vietnamese was fully revamped in 2017 and now features a significantly better user inter- Asset Recovery Handbook (2011) English, Arabic, French, face with improved search functionality Korean, Russian, Spanish, and filter options. We added several Thai, Vietnamese important functions to facilitate user access, including predictive search and Puppet Masters (2011) English, Spanish, Arabic, options for downloading data from the French database in excel or PDF format. StAR has compiled and continuosly updates an extensive record. The Asset Towards a Global Architecture for Asset English Recovery Watch Database includes Recovery (2010) cases from almost 140 countries, juris- dictions and international organizations. A Good Practice Guide for Non- English, Arabic, Russian, It has systematized and published in- Conviction Based Asset Forfeiture (2009) French, Chinese formation about completed and active
22 StAR Annual Report: January–December 2017 StAR corruption cases database Online tool for Practical Guidelines for Asset Recovery
asset recovery efforts around the world. Online tool for Practical Getting the Full Picture on In so doing, it aims to further active Guidelines for Asset Recovery Public Officials: A How-To recovery cases and to foster policy and StAR, in cooperation with the Govern- Guide to Financial Disclosure legal reforms in the area of international ment of Switzerland and International This publication was launched in in elec- asset recovery. Centre for Asset Recovery (ICAR), tronic format in December 2016 and Asset Recovery Watch currently finalized an online tool on the Practical was translated into Spanish, produced documents approx. US$6 billion in Guidelines for Efficient Asset Recov- in hard copy and disseminated in 2017. stolen funds that have been frozen, ery and an accompanying step-by-step The handbook, which is available on- adjudicated, or returned to affected guide which were launched at the 2017 line, is based on rigorous data analysis countries since 1980. Our next update CoSP in Vienna on 7 November.9 aimed at helping governments who will detail an additional approx. US$2.5 The launch of the online tool con- are struggling to implement financial billion in stolen funds. In all likelihood, cluded a multi-year initiative including disclosure systems. these figures represent only a fraction extensive consultation with practitioners of actual gains from corruption that have from a wide range of jurisdictions in the TRACK: The exchange of been returned or are in the process of context of the “Lausanne seminars” good practices, development being located, frozen, or returned. led by the Swiss Federal Department of knowledge products and In 2017, StAR has contributed to of Foreign Affairs with support from improved communication the development of cumulative knowl- ICAR and StAR. efforts edge through other tools and their The information in the Legal Library on dissemination: the TRACK website was continuously Getting the Full Picture on Public Officials
Getting the Full Picture on Public Officials
A How-To Guide for Effective Financial Disclosure A How-To Guide for Effective Financial Disclosure
Ivana M. Rossi Laura Pop Tammar Berger
New StAR publication Legal library on the TRACK website
StAR Annual Report: January–December 2017 23 Asset Recovery (December 2017), the G-20 Anti-Corruption Working Group (October 2016), or the Third Arab Forum on Asset Recovery (November 2014). In 2017-2018, new or updated benefi- cial ownership guides were published for Brazil, Italy, Latvia, Nigeria, Ukraine and the United Kingdom. A guide for Switzerland is forthcoming. StAR has assisted country authorities in creating these guides. In 2018 StAR will finalize three pub- lications on the topic of asset recov- ery. The first of these publications is related to and the use of insolvency laws to recover assets which will be a joint project with the International Bar Association (IBA). The second publi- cation is a directory of asset recovery networks with information on different regional and global asset recovery net- works for informal cooperation. Finally, Beneficial Ownership Guides on the StAR website “Financial Intelligence Units Working with Law Enforcement Authorities and updated, including with regard to chap- Criminal Matters developed by G-20 Prosecutors,” is a publication based on ter V of UNCAC on asset recovery, and countries. a joint study by the World Bank, Egmont the TRACK Asset Recovery portal.10 Group, and United Nations Office on The ongoing reviews of implemen- Beneficial Ownership Guides Drugs and Crime on Financial Intelli- tation of UNCAC asset recovery provi- StAR coordinated, collated and up- gence Units (FIUs) Working with Law sions provides an opportunity to further loaded 22 country-specific Benefi- Enforcement Authorities and Prosecu- update the legal library. cial Ownership guides to the StAR tors. The main objective of the publica- The dedicated asset recovery page website.11 Beneficial owner refers to tion is to support the implementation of combines in one place all relevant in- the natural person(s) who ultimately international AML/CFT standards and to formation and links to data available to owns or controls a customer and/or provide possible solutions in the areas asset recovery, i.e., the legislation of the natural person on whose behalf a currently not regulated by international 178 countries relevant to chapter V of transaction is being conducted. It also standards. These publications will be launched in 2018.
New or updated beneficial ownership guides OUTCOMES were published for Brazil, Italy, Latvia, Nigeria, Ukraine and United Kingdom. Through its work in promoting knowl- edge and innovation, StAR has contin- ued to advance asset recovery in the following ways: the Convention; the Asset Recovery includes those persons who exercise Watch; the knowledge products pub- ultimate effective control over a legal • Developed knowledge to improve lished by the StAR Initiative; a database person or arrangement. international cooperation and coor- on settlements in cases of transnational These documents are intended to dination in the fight against funds bribery, containing 534 settlements; as serve as a guide for public authorities or illicitly acquired by politically exposed well as the Country Guides for Asset other interested parties looking to find persons. Recovery that were prepared as part information on an entity incorporated • Facilitated asset recovery by collating of the Deauville Partnership with Arab under the laws of the country con- country-specific beneficial owner- Countries in Transition Action Plan on cerned and to attain basic information ship guides in a central repository. Asset Recovery (the Deauville Action that will assist in identifying the benefi- Plan) and other country-specific guides, cial owner and other related parties. All • Identified, exchanged and dissemi- and the Step-by-Step Guides on Re- guides present on the webpage were nated good practices and knowledge questing Mutual Legal Assistance in created as part of the Global Forum for more broadly.
24 StAR Annual Report: January–December 2017 Advocacy & Communications
“Safeguarding Seized Assets” appeared in the New York Times on 1 January 2017.
BACKGROUND related issues such as asset disclosure ACTIVITY/OUTPUT and illicit financial flows. Through the dvocacy and communi- publication and dissemination of the Online cations support StAR’s Practical Guidelines for Asset Recovery, StAR continued to maintain and update overall objectives, pro- and the continued updates to StAR’s its website and databases. At CoSP mote its work, and en- Asset Recovery Watch Cases Database in November 2017, StAR launched, in hance the impact and and the Legal Library on the TRACK cooperation with the Government of Aeffect of its activities. Advocacy and website, as well as its contribution to Switzerland and International Centre communications generate awareness consolidating materials on topics related for Asset Recovery (ICAR), the Practical and demand for StAR’s offerings among to asset recovery, StAR has increased Guidelines for Efficient Asset Recov- key groups including, legal practitioners international awareness about asset ery and an accompanying step-by-step in the public and private sector, civil so- recovery. Additionally, StAR created guide online.12 ciety organizations, international bodies, and disseminated a large amount of The number of page views to only the media, and other groups. content related to the GFAR event in the top 100 StAR webpages in the In 2017, StAR built upon the signif- December 2017, as well as uploading reporting period were nearly 124,000. icant advances it made in 2016 as an pertinent country-specific Beneficial Moreover, there were more than important presence in advocating and Ownership guides to the StAR website 61,000 unique vistors viewing the StAR communicating asset recovery and as resources.
StAR Annual Report: January–December 2017 25 StAR website—GFAR Webpage Traffic Trend Nov 8-Dec 7 124,000 page views of the top 100 top 100 webpages during that same Similarly, the UNODC’s E-learn- StAR webpages time period. ing Anti-corruption Tool, which was Previous increases in traffic to the launched in January 2016, and includes website have coincided with major pub- an asset recovery module developed lication launches. However, in 2017, the with contribution from StAR, was 61,000 StAR website had a considerable spike accessed over 7000 times as of 31 in attention to the corruption cases web- December 2017. unique visitors page in mid-March, to the Ferdinand The StAR Asset Recovery Handbook and Imelda Marcos Corruption case was downloaded 2,542 times during throughout July, with the most signif- 2017. engagements (how many times users icant spike taking place from mid-No- interact with a twitter post e.g. likes, vember to mid-December (period of Social Media retweets, etc). Of these engagements, time leading up to and following GFAR) StAR’s Twitter channel (@returningas- StAR tweets were retweeted a total of on the StAR-Global Forum on Asset sets) was also used in 2017 for dis- 1,298 times, hitting peaks in February Recovery webpage when the website seminating messages regarding issues and May. This number becomes even saw a three-fold spike in web traffic. related to asset recovery and the work more significant when considering the The Legal Library on the TRACK of the Initiative. depth and expansiveness of StAR’s website13 was updated with regard to At the beginning of 2017, StAR had social network and their potential con- Chapter V of UNCAC on asset recovery 2,865 followers. Twelve months later, tribution to spreading StAR content and (the ongoing reviews of implementation this number rose to 3,331-- an increase awareness. of UNCAC asset recovery provisions of over 16.2%. In terms of content, the top three provide an opportunity to continuously In the assessment period, there StAR retweets in 2017 were related update this legal library). The TRACK were 273,921 impressions on @re- to a report on the link between cor- Asset Recovery page had 2,000 unique turningassets (StAR’s address). Of ruption and the Islamic State, Coutts visitors during 2017. these impressions there were 5,129
StAR’s Twitter account StAR expert on the Mongolian program “Jargal De Facto.”
26 StAR Annual Report: January–December 2017 & Co being fined by Swiss regulators held as proceeds of corruption from an over money laundering, and Moldo- earlier Nigerian regime.15 In this article, van art illustrating US$1 billion bank a StAR team member was quoted in fraud. The top two most popular links a discussion on asset recovery. The on the StAR twitter page in terms of narrative described how only “a fraction impressions were related to GFAR and Asset Recovery Handbook of a fraction” of corrupt funds is being its speakers, while the third most pop- A Guide for Practitioners recovered and, making things more ular link dealt with secret companies difficult, victim states often struggled Jean-Pierre Brun allowing for cash to flood the largest Larissa Gray with issues related to MLA and coordi- Clive Scott real estate markets. Kevin M. Stephenson nation. However, StAR also pointed out During GFAR a unique hashtag the progress being made in the realm (#GFAR2017) was used to promote of asset recovery as demonstrated by the event and disseminate informa- a legal maneuver allowing a European tion, GFAR attendees –including StAR nation to reclaim significant assets in staff and CSOs—live tweeted from “the Abacha case.” the event, as did various interested Another featured story in the New CSOs that following the event remotely York Times, “Safeguarding Seized As- through livestreaming.14 StAR also pro- sets,” referred extensively to finding of moted StAR’s 10th year anniversary StAR Study Few and Far and quoted and the redesigned Corruption Case 2,542 a StAR Representative on challenges Database. During the event @returnin- of asset recovery: “Asset recovery is gassets channel gained more than 71 Number of times the StAR highly contentious and difficult to ne- new followers. Asset Recovery Handbook gotiate.”16 In additional to international was downloaded media, StAR experts occasionally en- Traditional Media, Public gage with national media during country Advocacy and Outreach engagements to raise awareness about Over the years, StAR has received article entitled “Nigerian Group Re- asset recovery challenges and ways to coverage in the media, including The quests US$500 million From Trump overcome those challenges. Financial Times, The Economist, The Administration” by Kieron Monks. It At the end of 2017, the GFAR event Wall Street Journal, Al Jazeera Inter- described a Nigerian request for the generated intense media interest and national, Huffington Post, Reuters and US government to release US$500 activity around asset recovery, includ- The Guardian (UK). CNN published an million in stolen assets allegedly being ing a front page main story on BBC
Engaging the media and civil society in investigating corruption,” investigative journalists from New York Times, McClatchy News Syndicate (involved in Mossack-Fonseca Papers) and Civil Society discuss at GFAR.
StAR Annual Report: January–December 2017 27 ENGAGING WITH FUTURE PRACTITIONERS
In January 2017, StAR delivered a two-day asset recovery course, as part of the Master of Arts in Anti-Corruption Studies (MACS) module on “Corruption, Enforcement and Public Sector” at the International Anti-Corruption Academy (IACA) in Austria. IACA is the first international organization and educational institution to offer a global, postgraduate degree program in anti-corruption and compliance. The MACS is an executive program, and its student body is comprised of professionals from 17 countries with related work experience in the public (including law enforcement) and private sectors, international and non-governmental organizations, media, and academia.
New website. Three sessions of GFAR Williams of Trafford, followed by the OUTCOMES were open to the media: the opening Swiss/Nigeria/WB MOU signing— session, the closing session and the was attended by NBC, CNN, ABC and Through its promotion of asset recov- press conference. These three sessions CBS, as well as photographers from ery and its work, StAR achieved the were also livestreamed and recorded AP, AFP and Getty Images. Local following: • It created greater awareness and interest among key stakeholders At the end of 2017, the GFAR event such as civil society organizations, academics, government officials, and generated intense media interest and the media in asset recovery. activity around asset recovery. • StAR highlighted the difficulties associated with asset recovery efforts as well as recent progress and successes. (available on GFAR webpage). The media covering Nigeria, Tunisia and opening session—headlined by World Ukraine (VOA Ukraine, Inter TV, RFE/ • It raised the interest of influential Bank Senior Vice President and Gen- RL Ukraine, Tunisia TV) were present media stakeholders in the sub- eral Counsel Ms. Sandi Okoro, U.S. as well. The closing session and the ject of asset recovery (including Attorney General, Mr. Jeff Sessions, press conference generated interest through media extensive coverage and UK Minister for Countering Ex- from journalists covering Ukraine and of GFAR). tremism at the Home Office Baroness Nigeria.17
28 StAR Annual Report: January–December 2017 Management, Staffing & Funding
n 2017, the StAR Secretariat was emerging priorities as well as donor on the implementation of the StAR based in the Finance & Markets interest and additional contributions. workplan and latest developments. Global Practice of the World Bank Taking this into account, the Commit- Australia, Norway, Switzerland, the Group, that became the Financial tee urged a renewed focus on StAR’s United Kingdom and the United States Stability and Integrity Global Prac- knowledge development portfolio, both had provided contributions to the StAR Itice on 1 January 2018 due to an internal to update existing flagship publications Multi-Donor Trust Fund. The renewed restructuring at the World Bank. As part and to expand to new substantive top- funding enabled StAR to increase its of the corresponding reassignments ics. In addition, as new or updated re- activities compared to the two previous due to overall portfolio, Emile Van der quests for assistance from countries years and to initiate planning for new or Does der Willebois took over as StAR were received, StAR would prioritize updated knowledge products as agreed Coordinator as of 1 January 2018. Emile its activities and fund raising so that with the Management Committee. has been part of StAR since its incep- it would be well placed to respond to Nine World Bank staff members, tion in 2007 and was the lead author on increased demand. some on a part time basis and involved in other projects, work on StAR. They are involved in the practice’s AMLCFT The renewed funding enabled StAR to activities and on illicit financial flows. The close links with the practice’s over- increase its activities compared to the two all portfolio created increased synergies previous years and to initiate planning for between substantive areas of work in the country engagements. new or updated knowledge products. Two UNODC staff are seconded to the StAR Secretariat in Washington DC and work full time on StAR related issues. Up to eleven Vienna and two field based UNODC staff members the 2011 StAR publication “The Puppet The annual briefing for the Donor contribute on a part-time basis to the Masters.” He is a lawyer by training, Consultative Group was held in No- implementation of StAR activities, par- having worked in private practice and vember 2017 on the margins of the ticularly for country engagements. at the Yugoslav War Crimes tribunal UNCAC COSP to share information Several consultants (both junior in The Hague, The Netherlands. Yira Mascaró, who was StAR Coordinator since April 2016, retains overall man- STAR MDTF SUMMARY SHEET FOR JAN–DEC 2017 agement functions regarding MDTF administration and human resources. (Numbers are represented in 1000s of US Dollars) The StAR Management Commit- tee continues to be chaired by the 2017 Vice-President of the Equitable Growth, DISBURSEMENTS % Finance and Institutions Practice Group Communications and Administration 25.3 2 that hosts the Global Practice where StAR is located. It includes the Senior Knowledge Development 161.9 16 Director and Director in the Global Practice, as well as the Director of the Policy Influence 87.1 9 Division for Treaty Affairs and the Chief Partnerships 230.6 23 of the Corruption and Economic Crime Branch in UNODC. The Committee Country Engagement 510.6 50 discussed the implementation of the StAR workplan and noted the new and Total 1,015.5 100
StAR Annual Report: January–December 2017 29 Scenes from the StAR team retreat.
2017 DISBURSEMENTS and senior levels, depending upon budget for UNODC’s contribution to work requirements) were employed the work of StAR which covers the in Washington on a regular basis in a costs of the seconded UNODC staff Communications and variety of capacities, from training to and selected activities. Administration research and for the delivery of specific • The World Bank budget to StAR in Country Knowledge priorities such as the Global Forum on 2017 was as follows: US$650,000. Engagement Development Asset Recovery. Other consultants are employed to work in the field on country • UNODC’s budget to StAR in 2017 engagements. was as follows: US$489,466. • Disbursements from the Multi-Donor FUNDING Trust Fund in 2017 were as follows: US$1,015,5000. StAR’s funding derives from the Multi Donor Trust Fund (MDTF) and from the World Bank global engagement budget. The MTDF covers a portion of fixed costs and the range of variable 2+Partnerships Policy16+92350 costs which includes: activities, travel, Influence consultants, and production of StAR material. There is also a separate project
30 StAR Annual Report: January–December 2017 Conclusion & Looking Forward
he tenth year anniversary concerted efforts in this area. actual asset recovery cases. In addi- of StAR marked an import- While the role of the financial centers tion, it will ask countries up front to ant year for the Initiative. in acting against safe havens for stolen provide a clear overview of its asset StAR was involved in a wide assets is vitally important in addressing recovery legislation and institutional set range of regular activities in these challenges, countries seeking up before it engages. It will continue Tareas of country engagements, policy the recovery of stolen assets also have to develop partnerships, looking for influence, partnerships, knowledge and delivered on their commitments to take further opportunities for collaboration innovation, and advocacy and commu- action. StAR’s focus on partnerships with practitioners networks like CARIN nications, as captured in this report. addressed the concerns on both sides and the IBA and others, and advocate But more focused work in these areas and facilitated cooperation in this area. for the cause of asset recovery also gathered pace and culminated in a grand StAR’s country engagements as- using the SDGs as a catalyst. finale, at the first ever Global Forum sisted developing countries in utilizing The support of donors has been criti- on Asset Recovery in December. In or improving their existing legal tools cal in making StAR’s work possible, and the context of GFAR, but also through and resources for asset recovery. StAR for the success it has had in bringing other usual channels, StAR continued to continues to engage with countries in the issue of asset recovery to the fore. facilitate the return of assets, including the developing world, and will continue But the increasing policy attention, and through silent diplomacy/honest bro- to do so at their request. But StAR’s imminent completion of review of imple- kering allowing practitioners to meet training and technical assistance can mentation of asset recovery provision of face to face and exchange information only work if there is the political will to UNCAC, are generating more demand to advance their cases. follow through. for StAR services. At the time of com- pletion of this report in 2018 StAR had already received several new requests The increasing policy attention, and for assistance. StAR will only be able to respond to this increased demand imminent completion of review of while at the same time increasing its implementation of asset recovery provisions work on knowledge projects with com- mensurate funding. of UNCAC, are generating more demand Renewed donor contributions have for StAR services. enabled the team to increase delivery and plan for new engagements and activities in the past year. StAR will continue to use whatever resources At the biennial Conference of the Knowledge products and tools, such it has to good effect, but in the short States Parties to UNCAC, the state- as Guidelines on Effective Recovery term it requires further resources to ments made by governments, a spe- of Stolen Assets, developed by StAR continue its activities at the current cial asset recovery resolution and the and its partners, provided the essential level beyond 2018. active participation of governmental resources for country engagements and StAR looks forward to building upon and non-governmental stakeholders in continued to inform policy discussions the momentum created in 2017, and a StAR Day special event, reaffirmed at the global level. to having the capability to respond to the momentum created by inclusion of At the end of 2017, a StAR retreat the growing interest in asset recovery asset recovery in the SDGs and Addis provided an opportunity for introspec- on all fronts. Ababa Action Agenda. Asset Recovery tion, taking stock and considering new remains front and center of the global and emerging initiatives and priorities. anti-corruption agenda. But the dis- As a result, StAR hopes to recalibrate cussions also confirmed the ongoing its efforts to put more emphasis on frustration with low rate of confiscation, knowledge development. For country freeze and return of substantial sums of engagements it wishes to prioritize stolen money, and the need for more those where there is a clear link to
StAR Annual Report: January–December 2017 31 Appendix: Country Engagements 2017
o far, the StAR Initiative countries both for general capacity regional and international organizations has provided country-spe- building as well as for case specific in areas such as capacity building and cific technical assistance support. technical assistance. in over 30 countries, with Listed below are individual country In addition UNODC conducted ad case-specific assistance engagements carried out by StAR, but hoc activities in the area of asset re- Sin several of them. During 2017, StAR in addition to these, StAR also worked covery in the countries colored blue. received additional requests from with a number of other jurisdictions and
Mexico Tunisia Kazakhstan (new request) Venezuela (UNODC) Ukraine Mongolia Guatemala The Gambia Moldova Kyrgyz Republic (new request) Costa Rica Guyana Myanmar (UNODC)
Ecuador (UNODC) Argentina Nigeria Uganda Somalia Colombia Paraguay Botswana Tanzania Sri Lanka (new additional (ongoing; but no (ongoing; but no request) activity during 2017) activity during 2017)
32 StAR Annual Report: January–December 2017 © Brigitte Strobel Shaw Negotiations of Asset Recovery resolution at Conference of the States Parties (C0SP).
NOTES
1. According to data from ACPO there is a final all levels” and its target 16.4 reads as follows: World Bank’s corporate Facebook and Twitter judgment for the confiscation of US$25.4 million “by 2030 significantly reduce illicit financial and cross-promoted the event. Co-hosts promoted in the case of the former Prime Minister. There arms flows, strengthen recovery and return of the event through their twitter accounts: @ is another court decision, which is not yet final, stolen assets, and combat all forms of organized StateINL, @ukhomeoffice. In addition to unique on the confiscation of US$47.8 million against crime.” hashtag: #GFAR2017, #unitedagainstcorruption, a prominent businessman involved in the fraud, 5. For more information see the adopted Report of #AssetRecovery were tapped into a broader who was convicted on money laundering charges the 2017 CoSP which includes the resolution: conversation on the issue. (US$36.7 million have been seized). Two more https://www.unodc.org/documents/treaties/ 15. Article can be accessed at https://edition. prominent cases are now in court against past UNCAC/COSP/session7/V1708295E.pdf. cnn.com/2017/02/15/africa/nigeria-lost-as- senior management of a bank at the center of 6. For more information on the network see: https:// sets-trump/index.html. the fraud in which prosecutors are requesting www.interpol.int/es/Crime-areas/Corruption/ 16. See: Leslie Wayne, “Safeguarding Seized As- the confiscation of US$332 million. US$18.7 International-asset-recovery. sets,” New York Times, 1 January 2017, Sunday million have already been seized. 7. As delivered by Vice-President Yemi Osinbajo Business, Pages 1, 4–5. 2. One prominent example is StAR analysis of at the opening of the 8th Commonwealth Con- 17. For a sample of GFAR media coverage see: “The package on decriminalization of certain economic ference of Heads of Anti-corruption Agencies in Global Forum on Asset Recovery: Assistance activities. Africa. for Combatting Corruption in Nigeria, Sri Lanka, 3. Prior action focused on launching the electronic 8. See earlier references to StAR’s contribution to of Tunisia, and Ukraine,” CNBCAfrica.com, Dec 6, filing and verification system for public officials; SDGs and financing for development discussions 2017; “State Department: US experts in NABU bringing key amendments to the legal framework under Policy Influence section. helped to raise 108 corruption allegations,” (including systematic declaration of beneficial 9. The online Guidelines are accessible at: https:// Ukrainian VOA, Dec 6, 2017. “US provides interests and ownership of public officials and guidelines.assetrecovery.org assistance for combatting corruption in Sri their family members, making sanctions more 10. Can be accessed at: http://www.track.unodc. Lanka,” Colombo Page, Dec 5, 2017, “‘Abacha dissuasive, strengthening verification system to org/AssetRecovery/Pages/home.aspx loot’: Switzerland to return $320m to Nigeria,” deliver better inputs and triggers in terms of ad- 11. Beneficial ownership guides can be accessed BBC News, Dec 5, 2017; “Switzerland to return ministrative procedures, criminal investigations); at https://star.worldbank.org/star/content/ $321m stolen from Nigeria by dictator Sani Aba- and adoption of the verification methodology for beneficial-ownership-guides. cha,” The Times UK Dec 5, 2017; “Swiss make public officials. StAR engaged with stakeholders to 12. The online Guidelines are accessible at: https:// deal with Nigeria on final payout for Abacha ensure the implementation of all these measures. guidelines.assetrecovery.org. loot,” RFI, Dec 6, 2017; “Nigeria: Civil Societies 4. Goal 16 of SDGs is to “[p]romote peaceful and 13. http://www.track.unodc.org/AssetRecovery/ Hail Agreement On Recovery of Abacha Loot,” inclusive societies for sustainable development, Pages/home.aspx. AllAfrica.com, Dec 7, 2017 “Switzerland to return provide access to justice for all and build effec- 14. StAR Twitter—@returningassets—was the main over $320m of Abacha family loot to Nigeria,” tive, accountable and inclusive institutions at channel for the campaign. @WB_Finance, the africanews, Dec 5, 2017.
StAR Annual Report: January–December 2017 33 StAR publications have been the knowledge products geared toward providing tools and good practices to practitioners and are the backbone of country engagement and capacity-building. Getting the Full Picture on Public Officials
Getting the Full Picture on Public Officials Public Office, Private Interests The Puppet Masters
A How-To Guide for Effective Financial Disclosure A How-To Guide for Accountability through Income and Asset Disclosure How the Corrupt Use Legal Structures to Effective Financial Disclosure Hide Stolen Assets and What to Do About It Emile van der Does de Willebois Ivana M. Rossi Emily M. Halter Laura Pop Robert A. Harrison Tammar Berger Ji Won Park J.C. Sharman
A GOOD PRACTICES GUIDE FOR NON-CONVICTION BASED ASSET FORFEITURE Barriers to Asset Recovery Asset Recovery Handbook Theodore S. Greenberg On the Take Linda M. Samuel Criminalizing Illicit Enrichment to An Analysis of the Key Barriers and A Guide for Practitioners Wingate Grant Recommendations for Action Larissa Gray Fight Corruption
Lindy Muzila Kevin M. Stephenson Jean-Pierre Brun Michelle Morales Larissa Gray Larissa Gray Marianne Mathias Ric Power Clive Scott Tammar Berger Jean-Pierre Brun Kevin M. Stephenson Gabriele Dunker Melissa Panjer
All publications are available for free
In recent years, revelations of grand corruption and the plunder of state assets have led to greater scrutiny of fi nancial relationships with politically exposed persons (PEPs)—senior government Politically Exposed Persons download and in different languages: offi cials and their family members and close associates. Notwithstanding the eff orts by many fi nancial institutions and regulatory authorities to prevent corrupt PEPs from entering and using PREVENTIVE MEASURES FOR THE BANKING SECTOR the fi nancial system to launder the proceeds of corruption, there has been an overall failure in the eff ective implementation of international standards on PEPs. star.worldbank.org Theodore S. Greenberg Implementation of an eff ective PEP regime is a critical component in the prevention and detection Few and Far Politically Exposed Persons Larissa Gray of transfers of proceeds of crime and, therefore, ultimately in the process of recovering them. The HardPolitically Facts Exposed Persons: on PreventiveStolen Measures forAsset the Banking Sector Recovery is designed to help banks Delphine Schantz and regulatory authorities address the risks posed by PEPs and prevent corrupt PEPs from using Carolin Gardner Michael Latham domestic and international fi nancial systems to launder the proceeds of corruption. The book provides recommendations and good practices aimed at improving compliance with international Larissa Gray standards and increasing supervisory eff ectiveness. It is an important tool for individuals, Kjetil Hansen governments, fi nancial and private sector companies, and international organizations involved in Pranvera Recica-Kirkbridedeveloping and implementing standards aimed at fi ghting corruption and money laundering, and Linnea Mills trying to recover stolen assets and the proceeds of corruption. Personas Expuestas
البلدان النامية مبلغا يللراوح بني 20-40 مليار دوالر اأمريكي كل عللام من خللال الر�شوة Public Disclosure Authorized تفقد واختا�س االأموال، وغريها من ممار�شات الف�شاد. وهكذا اختفى نحو 300-600 مليار دوالر Greenberg, Gray, Gardner, Schantz, Latham Politicamente على مدى خم�شة ع�شر عاما. ويعتقد اأن معظم هذه االأموال املنهوبة من البلدان النامية يتم حتويلها اإىل اخلارج واإخفاوؤها يف واليات ق�شائية اأجنبية. واملوؤ�شف اأنه مل يعد منها �شوى 5 مليارات دوالر Medidas Preventivas Para el sector Bancario على مدى اخلم�س ع�شرة �شنة املا�شية! Theodore S. Greenberg Les Profiteurs وهذه الفجوة الهائلة يف اال�شرداد الفعلي لاأموال املنهوبة ت�شري اإىل وجود عوائق مهمة تعرقل ا�شرداد عوائـق ا�سرتداد الأموال StAR—the Stolen Asset Recovery Initiative—is a partnership between the World Bank Group Larissa Gray تلك االأموال. وبغية معاجلة هذه illiciteالفجوة ، اأ�شدرت مبادرة ا�شرداد االأموال املنهوبة )StAR l’enrichissement( كتاب »عوائق and the United Nations Offi ce on Drugs and Crime that supports international eff orts to end safe Incriminer ا�شرداد االأموال«، وهو حتليل دقيق لهذه العقبات واأثرها ال�شلبي. حتليل للعوائق الرئي�سية وتو�سيات للعمل Delphine Schantz ويعترب التعاون الدويل اأمرا حا�شما لتعقب االأموال املنهوبة corruption وا�شرla دادها. وتوفر اتفاقية االأمم combattre املتحدة Carolin Gardner Michael Latham pour
Public Disclosure Authorized كيفني اإم. ا�ستيفين�سون havens for corrupt funds. StAR is working with both developing countries and fi nancial centers to عوائق الأموال ا�سرتداد ا�سرتداد الأموال ملكافحة الف�شاد برناجما رئي�شيا لتعزيز هذا العمل اجلماعي– كما ت�شهد به االلتزامات التي تعهدت بها لري�سا غراي احلكومات، واملجتمع املدين، والقطاع اخلا�س– لكنها لي�شت بل�شما �شافيا؛ الأن كثريا من العوائق ال Muzila ميكن Lindy ريك باور prevent laundering of the proceeds of corruption and to facilitate the more systematic and timely التغلب عليها من خال االتفاقية. Michelle Morales جان–بيري برون وا�شتنادا اإىل خربة املمار�شني الفنية من خال التجارب العملية، تهدف هذه الدرا�شة اإىل Mathias توجيه �شناع Marianne غابرييل دنكر ترجمة: ال�سحات من�سور .return of stolen assets Tammar Berger ال�شيا�شات وتعزيز التو�شيات العملية الرامية مل�شاعدة الواليات الق�شائية يف ا�شتنباط �شيا�شات ناجعة ميلي�سا باجنري مراجعة: كمــــال ال�ســـــيد ال�شرداد االأموال املنهوبة ب�شورة ب�شيطة. وتلعب جمموعة الع�شرين، واملنظمات الدولية، واملوؤ�ش�شات املالية، والوكاالت االإمنائية، واملجتمع املدين دورا رئي�شيا يف �شمان التقدم امللمو�س يف تنفيذ هذه التو�شيات. Public Disclosure Authorized ا�ستيفين�سون • غراي Delivered by The World Bank e-library to: • باور
The World Bank • 978-0-8213-8249-3 IP : 192.86.100.35 برون مبادرة ا�شرداد االأموال املنهوبة )StAR هي( �شراكة بني جمموعة البنك الدويل ومكتب االأمم املتحدة املعني باملخدرات • Tue, 11 May 2010 22:09:59 دنكر واجلرمية. وترمي اإىل دعم اجلهود الدولية ملنع االأموال الفا�شدة من احل�شول على ماذ اآمن. وتعمل املبادرة مع البلدان •
النامية واملراكز املالية ملنع غ�شل ح�شيلة اأعمال الف�شاد ولت�شهيل رد االأموال املنهوبة على نحو اأ�شرع واأكرث منهجية. باجنري
مركز األهـرام للنشــر SKU 18249 Public Disclosure Authorized
(c) The International Bank for Reconstruction and Development / The World Bank