GETTING THE MONEY BACK Daniel H. Claman Senior Trial Attorney U.S. Department of Justice

ASSET RECOVERY IN PRACTICE  Montesinos/Venero (Peru) –August 2004 repatriation of $20.2 million –Assistance led associates of Fujimori/Montesinos/Venero to voluntarily repatriate substantial additional assets  Byron Jerez (Nicaragua) –December 2004 repatriation of $2.7 million to Nicaragua –Technical Assistance to financial investigators

U.N. CONVENTION AGAINST CORRUPTION  Direct Recovery also available (Article 53)  To return under Article 57, first must find, restrain, and confiscate  Article 57 – Return and Disposal

RETURN AND DISPOSAL ARTICLE 57  Disposition governed by the Convention and national law  Must be able to transfer funds –Legislative, administrative authority

RETURN AND DISPOSAL ARTICLE 57  Must Return –Embezzled funds –If confiscated by enforcing foreign judgment  May Repatriate –other proceeds if ownership or status as victim established and permitted –Prior owners  Mutual legal assistance exceptions apply

RETURN AND DISPOSAL ARTICLE 57  May deduct reasonable expenses  May conclude other agreements on disposition

G-8 Disposition Paper  Reaffirms UNCAC commitment  Five Principles –Non-Binding –Recognize special and shared responsibility  Annex with options

G-8 GENERAL PRINCIPLES  Transparency and accountability –In transfer and administration –Prevent corruption in transfer –Not add burdens  Presumption of Transfer –Benefit people of country victim of corrupt official –Expansive view of restoration – not just embezzlement

G-8 GENERAL PRINCIPLES  Case Specific Treatment –Different approaches for different circumstances  Encourage UNCAC objectives and repair damage –Visibly strengthen anti-corruption institutions –Remedy societal effects –Compensate victims

G-8 GENERAL PRINCIPLES  Consistency and coordination –Inform of transfers –Avoid duplication and support effective use –Community identified needs  Encourage use of an agreement –Manage expectations –Not tie to unrelated policy  Not Benefit to Offenders

G-8 MODALITIES  Acknowledge no further proceedings necessary  Prohibit benefit to victims  Title transferred –Inform of transfers –Avoid duplication and support effective use –Community identified needs  Encourage use of an agreement –Manage expectations –Not tie to unrelated policy  Several policy approaches

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)