1. A fundamental principle of UNCAC
Chapter V
Asset Recovery
Articles 51-59
A fundamental principle of UNCAC

2. Before After

3. Asset recovery measures
Article 52:
Prevention and detection
of transfers of proceeds of crime
Article 53:
Direct recovery of property
Recovery of property through
international cooperation
Articles 54-55:
Article 57:
Return and disposal of assets

4. Prevention of transfer of proceeds of crime
Article 52 reiterates the importance of AML prevention measures (art. 14) in asset recovery.
States parties must require that their financial institutions:
Verify the identity of their customers (KYC, CDD)
Determine the identity of beneficial owners of high-value accounts
Apply enhanced scrutiny to accounts maintained by prominent public officials (politically exposed persons), their family and close associates
Report suspicious transactions to competent authorities
Maintain records
Apply a risk-based approach

5. Prevention of transfer of proceeds of crime
In line with Art. 52, States parties must also:
Prevent the establishment of banks with no physical presence (shell banks) and of corresponding relationships with such banks
Consider establishing financial disclosure systems for appropriate public officials
Consider requiring those officials to declare any authority (interest, signature, etc) over financial accounts in foreign jurisdictions.

6. Article 53: Direct recovery of property
States parties shall
be permitted to:
Initiate civil action in another party’s courts to establish ownership of property acquired through corruption.
Courts shall
be permitted to:
Order corruption offenders to pay compensation to another State party.
Courts/competent
authorities
shall be allowed to:
recognize, in confiscation decisions, another party’s claim as legitimate owner of property.

7. International cooperation for the purpose of confiscation
Articles 54 and 55 complement the general provisions of freezing, seizures and confiscations (art. 31) and mutual legal assistance (art. 46) in asset recovery.
The articles provide for the following:
A State can enforce a confiscation order from another State
A State can obtain a confiscation order based on a request from another State
A State can seek the assistance of another State in tracing, freezing or seizing assets in view of their eventual confiscation
Conviction- vs. non-conviction-based confiscations

8. Confiscating proceeds of crime
Article 55:
Article 31:
International cooperation
for purposes of confiscation
Upon request from
another State party
Domestic freezing, seizure
and confiscation
Necessary legal framework
required
to the greatest extent possible
Bona fide third parties

9. Article 56 & Article 58 Special cooperation:
Forwarding useful information on offences
to another State without prior request.
Scenarios:
Money laundering cases/different jurisdictions
Perpetrators of corruption or ML offences are
nationals or residents of another country
Financial intelligence unit:
Receiving, analysing and disseminating to the competent authorities
reports of suspicious financial transactions.
Additional functions: blocking transactions, freezing accounts, conducting investigations, monitoring compliance, training, research and public awareness.

10. Return and disposal of assets (Art.57)
Return depending on how closely the assets were linked to the requesting State party
Return to the State
Public funds embezzled from the State
Return to the State if it establishes
ownership or damage
recognized by the requested State party
as a basis for return
Proceeds of other offences
covered by UNCAC
May be returned to
the requesting State Party,
a prior legitimate owner or
used for compensating victims
Other Cases

11. Make sure that crime does not pay… Thank you for your attention!
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