International Asset Tracing: English Law Solutions Yuri Botiuk Grosvenor Law 60 Grosvenor Street Mayfair London

Who can English law help with asset tracing? Claimants in ongoing or contemplated Ukrainian/non English proceedings; Claimants in ongoing or contemplated arbitration proceedings; Claimants enforcing Ukrainian/non English Judgments; Claimants enforcing an arbitral award; Claimants in ongoing or contemplated English proceedings; and Claimants enforcing English proceedings.

The usual facts The bad news: The debtors do not have assets available in Ukraine. They have dispersed their holdings using offshore structures to put them beyond the reach of creditors. There most likely will not be a clear and direct route between the debtors and their offshore holdings. The good news: The debtors are constrained in their actions by the number of people that they can trust (which is quite small). This will lead to being able to find patterns of behaviour and advisors. Additionally, there are requirements to disclose beneficial ownership to banks and other international financial institutions, which when coupled with disclosure orders makes these vulnerable to asset tracing.

The Three Legged Stool of Professionals Asset Tracing Legal (local & international) Forensic Accounting Investigation

Typical Orders Sought Disclosure Orders Freezing Injunctions

Disclosure Orders Norwich Pharmacal Orders What are they for Obtaining information from third parties Who can you get them against A third parties involved in the matter but usually not complicit in the wrong – banks – directors – service providers – etc What should you remember Obtain a gagging order at the same time to stop the innocent (or not) third party from tipping off the target

Freezing Orders What are they for? Securing assets (they are not an order for sale) Obtain disclosure of other assets held by target When can I get them? On an urgent without notice (ex parte) basis – need to show urgency and risk of dissipation What can I freeze? Assets worldwide Something to remember If going ex parte will need to provide full and frank disclosure (bad points as well as good ones)

The Complicated Dance 2. Freezing Order 3. Information on assets received from sources 1. Disclosure Order 4. Repeat

Conclusion You need to find your evidence legally. This means that you may need to go through the steps, above, a number of times before your get to the asset. Prepare: a poorly executes freezing order can cause damage. The English court and English Solicitors are there to help but the more preparation and groundwork that is done in Ukraine the greater the chances for success – the facts happened in Ukraine.

Thank You Yuri Botiuk Partner Grosvenor Law yuri.botiuk@grosvenorlaw.com www.grosvenorlaw.com