1. The Asset Recovery Imperative
Daniel H. Claman
Senior Trial Attorney
U.S. Department of Justice

2. USD 1.5 to 5 billion USD 1 to 2.8 billion USD 3 to 14 billion
Global Problem of Money Laundering:
IMF Estimates: between 2% y 5% of Gross World Product, At least USD $600,000,000
USD 23 million to 1 billion
USD 100 million
USD 250 million or more
USD 106 to 700 million

3. CHALLENGES Difficulty Proving Underlying Crime
Difficulty Proving Financial Relationships
Resource Intensive
Strong presumptions in favor of property rights
Differences in Legal Systems

4. OPPORTUNITY NOW International Commitment to Asset Recovery Legal tools
Denial of Safe Haven commitments
G-8 Justice and Home Affairs Declaration on Asset Recovery
Legal tools
Inter-American Convention
OECD Convention
U.N. Convention Against Corruption
Recent Successes

5. DECLARATION OFNUEVO LEON
“In the framework of applicable national and international law, we commit to deny safe haven to corrupt officials, to those who corrupt them, and their assets; and to cooperate in their extradition as well as in the recovery and return of the proceeds of corruption to their legitimate owners. We also commit to enhance regional mechanisms for mutual legal assistance in criminal matters and their implementation.”

6. DENIAL OF SAFE HAVEN Political Commitments Broadly Endorsed
Visa Denial
Extradition
Asset Recovery
Broadly Endorsed
Summit of the Americas
G-8
APEC

7. G-8 JUSTICE MINISTERIAL INITIATIVE
2004 Justice and Home Affairs Ministers Declaration on Recovering the Proceeds of Corruption
Practical steps to facilitate cooperation
Ensure G-8 states have legal tools to be able to provide assistance

8. G-8 JUSTICE MINISTERIAL INITIATIVE
Facilitate Requests for Assistance
Multilateral Case Coordination
Seminars to share experiences, practices
Enhanced Due Diligence and Wire Originator Information
Examine Recovery without Conviction (death, immunity, fugitivity)
Facilitate Repatriation

9. MULTILATERAL ANTI-CORRUPTION TREATIES
Inter-American Convention Against Corruption
Entered into force: 6 March 1997; Parties: 33
OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
Entered into force: 17 December 1997; Parties: 36
United Nations Convention Against Corruption
Entered into force: 14 December 2005; Parties: 51
United Nations Convention Against Transnational Organized Crime
Entered into force: 29 September 2003; Parties: 119

10. MULTILATERAL TREATIES
Set Binding Standards for National Law
Legal Framework for Mutual Legal Assistance
Follow-up, Monitoring Mechanisms

11. INTER-AMERICAN CONVENTION AGAINST CORRUPTION
Wide range of corruption offenses
Illicit Enrichment offense (Article IX)
Subject to Constitution, fundamental principles
Assistance regarding property (Article XV)
Broadest possible measure of assistance in identification, tracing, freezing, seizure and forfeiture
Property derived from or used in covered offenses
Authorizes transfers to assisting countries

12. OECD CONVENTION AGAINST BRIBERY
Attack the Supply Side of Corruption
Criminalize Payment of Bribes to Foreign Officials
Nationality Jurisdiction
Peer Review

13. United Nations Convention Against Corruption
Negotiated January 2002 to October 2003
Opened for signature December 9, 2003 in Merida, Mexico
Entered into force December 14, 2005
51 Parties, 140 Signatories
U.S. is a signatory but not yet a Party

14. STRUCTURE Chapter V: Asset Recovery Chapter I: General Provisions
Chapter II: Preventive Measures
Chapter III: Criminalization and Law Enforcement
Chapter IV: International Cooperation
Chapter V: Asset Recovery
Chapter VI: Technical Assistance and Information Exchange
Chapter VII: Mechanisms for Implementation
Chapter VIII: Final Provisions
TOC – 41 articles UNCAC – 71 Articles
More focus on prevention and implementation

15. HIGHLIGHTS FOR ASSET RECOVERY
Detection/Identification – Articles 14, 52, 58
Money laundering, confiscation – Articles 23, 31
Required ability to provide assistance in forfeiture – Articles 53, 54
Forfeiture assistance – Article 55
Disposition of forfeited property – Article 57
Dual criminality – Article 46 (9)
Article 40 Bank Secrecy

16. MONEY LAUNDERING PREVENTION – ARTICLE 14
Based upon Palermo Transnational Organized Crime Convention
Must require customer identification
Must have suspicious activity reporting
Should have a financial intelligence unit
Should require inclusion of wire originator information

17. MONEY LAUNDERING PREVENTION – ARTICLE 14
Should require complete wire originator information
Accurate, meaningful information on originator
Maintain information throughout payment chain
Enhanced scrutiny to transfers that do not include complete originator information

18. DETECTION OF GRAND CORRUPTION – ARTICLE 52
MUST require financial institutions to identify beneficial owner of high-value accounts
MUST require financial institutions to conduct enhanced scrutiny of accounts of politically exposed persons
Senior foreign politicians, family, associates
MUST issue advisories concerning types of accounts/persons
Disseminate identification of officials on request

19. DETECTION OF GRAND CORRUPTION – ARTICLE 52
No business with shell banks (no physical presence)
Should require financial disclosure and permit to share with foreign authorities
Should require disclosure of existence of foreign accounts

20. OLD FORFEITURE LEGAL ASSISTANCE REGIME
1988 Vienna Convention on Narcotics
2000 Palermo Convention on Transnational Organized Crime
Requested country either
open own case OR
enforce a foreign confiscation judgment

21. NEW FORFEITURE LEGAL ASSISTANCE REGIME
Direct recovery without forfeiture (Art. 53)
MUST have basis to provide assistance (Art. 54)
Procedures for international cooperation (Art. 55)

22. RETURN AND DISPOSAL ARTICLE 57
Major Focus of Negotiations
REMEMBER: DIRECT FORFEITURE ALSO AVAILABLE (ARTICLE 53)
MUST FIRST FIND, RESTRAIN, PRESERVE VALUE, CONFISCATE

23. DEVELOPING PRACTICE Abacha Fujimori/Montesinos Aleman/Jerez
Switzerland $500 million repatriated
Jersey $160 million repatriated
Fujimori/Montesinos
Switzerland $77 million repatriated
United States $20.2 million repatriated
Aleman/Jerez
United States $2.7 million repatriated

24. CONFERENCE Corruption Investigations
Asset Tracking and Financial Investigations
Mutual Legal Assistance
Transparency and Looking Forward

25. ? USD 1.5 to 5 billion USD 1 to 2.8 billion USD 3 to 14 billion
Global Problem of Money Laundering:
IMF Estimates: between 2% y 5% of Gross World Product, At least USD $600,000,000
USD 23 million to 1 billion
USD 100 million
USD 250 million or more
USD 106 to 700 million

26. SHARED COMMITMENTS SHARED RESPONSIBILITY

27. Asset Forfeiture and Money Laundering Section
Daniel H. Claman
Senior Trial Attorney
Asset Forfeiture and Money Laundering Section
U.S. Department of Justice
Criminal Division (AFMLS)
Washington, D.C
Tel. (202)
Fax (202)