The StAR Initiative: An Overview EAMJA-KIGALI May 24, 2012 Recovery of Stolen Assets The StAR Initiative: An Overview EAMJA-KIGALI May 24, 2012

What is StAR The Stolen Asset Recovery (StAR) Initiative, is a partnership between the World Bank Group and the United Nations Office on Drugs and Crime (UNODC). It was established in 2007 StAR provides technical assistance to developing countries to facilitate a more systematic and timely return of corruptly acquired assets

What does StAR do? StAR provides technical assistance to requesting countries by :- -providing training and capacity building, -assisting countries in the stolen asset recovery process policy analysis and knowledge building- publications Support global and anti-corruption agenda StAR advocates that training at the regional level will enhance international cooperation among the East Africa judiciary, allow for sharing experience and make a case for policy formulation at regional as well as domestic levels. Some of the assets move within the region and this provides a good forum. At the same time StAR believes that country-specific training offers an even better opportunity to address country specific needs. StAR is already engaging with 2 of them at the country level and it is hoped that the Association will advocate for eventual country-specific training to build on the region-level training At country engagement level, StAR helps countries define strategies and make informed decisions in their asset recovery programs Deliver gap analysis, capacity building and training Facilitate coordination/dialogue among states’ parties through all forms of international cooperation, including Mutual Legal Assistance Support the preparation and analysis of information on the asset recovery aspects of specific cases

Basic Principles At a preventive level, there is need for:- . UNCAC: The return of assets is a fundamental principle of this Convention, and States Parties shall afford one another the widest measure of cooperation and assistance in this regard At a preventive level, there is need for:- Public sector good governance – public financial management, public procurement Income and asset disclosure for senior public officials Effective AML framework – prevention, detection, repression, international cooperation Chapter V of the United Nations Convention Against Corruption-The UNCAC establishes a ground for corruption prevention, criminalization, asset recovery and technical assistance. It provides for an overall demand for governance, accountability, and transparency in public and private institutions.

Why does Asset Recovery matter? Political case Accountability and legitimacy Social and political stability Public interest vs. private gains Developmental case Corruption and bad governance hinder development Asset recovery as “acid test” of whole-of-government approach to good governance Deterrence case No safe havens Virtuous circle prevention / repression Collective action case Nations benefit mutually from international cooperation A conservative estimate of US$ 20-40 billion is stolen from developing countries each year (20-40% of development assistance). Corruption of this kind undermines trust and confidence in governments and banks, degrades public institutions, hinders delivery of basic services and discourages investments thus slowing economic growth and poverty alleviation.

Building on traditional institutions The law enforcement set up—investigation, prosecution, adjudication, internal and external government audits, financial intelligence units, specialized anti-corruption agencies, fora for national cooperation and information- sharing, etc. Judicial powers: Freezing, warrants, seizures, management of assets Mutual Legal Assistance Confiscation and asset return Civil recovery --Damages, restitution for legitimate owner Adjudication in criminal prosecution It is estimated that East Africa has in the last four decades has recorded Illicit Financial Flows of up to USD 22,2 billion of which only USD424 million (about 1.8%) has been collectedThe judiciary has a major role to play at both the domestic and international levels. The tools for investigations and asset tracing include seizures, temporary freezes and preservation which, in many jurisdictions, is a judicial process. Similarly, any recovery, civil or criminal action, is a court process. It is therefore important that courts are alive to and knowledgeable about their participation in this process.

Important considerations for EAMJA Trust and networking Promote personal contacts among relevant officials– liaison among magistrates / judges, police attachés—attend regional and int’l fora, participate in regional and int’l networks Comprehensive Asset Recovery policy Make Asset Recovery a policy priority Ensure asset recovery legislation is comprehensive and adequate Create specialized investigative units / courts to focus on stolen assets Resources Commit resources, develop capacity and expertise, communicate about sharing of costs and recovered assets

International networking for operational process Law enforcement focal points Identify primary and secondary focal points--provide clear and updated information on judicial websites, encourage networking with other similar associations e,g common wealth judges association etc StAR/Interpol Initiative for countries to provide focal points for exchange of information 24/7 basis open to members Seek StAR assistance as a honest broker- StAR plays a facilitating role and convening powers StAR has been able to facilitate a discussion meeting for case strategy between the asset recovery institutions (investigators, prosecutors and judicial officers) and jurisdictions where assets have been traced for informal cooperation .

Initiating StAR assistance Make a request to the Coordinator –StAR Initiative at the contact addresses provided StAR will often undertake a needs assessment; the implementation process will be agreed thereafter In the case of the EAMJA--request already received for capacity building While this will be arranged and provided as appropriate, StAR’s emphasis is on country engagements for a more focused approach Anticipated that EAMJA will cascade to country requests StAR advocates that training at the regional level will enhance international cooperation among the East Africa judiciary, allow for sharing experience and make a case for policy formulation at regional as well as domestic levels. Some of the assets move within the region and this provides a good forum. At the same time StAR believes that country-specific training offers an even better opportunity to address country specific needs. StAR is already engaging with 2 of them at the country level and it is hoped that the Association will advocate for eventual country-specific training to build on the region-level training

Thank you www.worldbank.org/star www.track.unodc.org For more information please contact Jean Pesme--StAR coordinator at: jpesme@worldbank.org www.worldbank.org/star www.track.unodc.org