Asset recovery (chapter V)

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In a major breakthrough during the negotiations of the Convention, countries agreed that asset recovery should be one of the fundamental principles of the Convention. Asset recovery is the process by which the proceeds of corruption are recovered and, when they were transferred abroad, returned to the country from which they had been taken or to their rightful owners. This is a particularly important issue for many developing countries where high-level corruption has resulted in a plundering of national wealth, and where resources are essential for the reconstruction and rehabilitation of societies under new governments.

To support these efforts, the Convention dedicates an entire chapter to asset recovery (chapter V). The chapter aims to support countries to redress the worst effects of corruption, while sending a message to corrupt officials that there will be no place to hide illicit assets of corruption.

The provisions of this chapter specify how cooperation and assistance are to be provided during all stages of the asset recovery process, including measures to identify, trace, freeze, preserve, seize, confiscate, manage and return stolen assets. The Convention encourages the widest possible cooperation between countries and foresees various mechanisms in this regard, such as direct enforcement of freezing or confiscation orders of another State, non-conviction-based confiscation in cases of death, flight or absence of the offender, or in other appropriate cases such as civil actions initiated by another State.

UNODC’s work in the area of asset recovery

  • Legislative drafting to ensure that legal frameworks meet the obligations of chapter V.
  • Training and capacity-building programmes to enhance technical skills in all areas covered by chapter V.
  • Development of practical assistance tools and knowledge products aimed at improving the capacity of States in the area of asset recovery.
  • Provision of targeted assistance through the Stolen Asset Recovery (StAR) Initiative – a partnership between UNODC and the World Bank Group.
  • Facilitating effective transnational cooperation through the Global Operational Network of Anti-Corruption Law Enforcement Authorities (GlobE Network).

Resources

Country Profiles

The database provides access to the outcome documents of the Implementation Review Mechanism, including full country review reports and executive summaries, and to other country-based information on the Convention’s implementation.

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StAR logo

The Stolen Asset Recovery Initiative (StAR), in partnership with the World Bank Group, supports international efforts to end safe havens for corrupt funds. Its dedicated portal provides access to a rich array of publications and knowledge on asset recovery.

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GlobE Network logo

With the UNODC and partners, the Network facilitates transnational cooperation on corruption cases for a growing community of practitioners worldwide. On the GlobE Secure Communications Platform, they connect and collaborate directly, securely sharing information to detect, investigate and prosecute corruption.

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Chapter V: Overview

General provision (article 51)

The return of assets pursuant to this chapter is a fundamental principle of this Convention, and States Parties shall afford one another the widest measure of cooperation and assistance in this regard.

Prevention and detection of transfers of proceeds of crime (article 52)

1. Without prejudice to article 14 of this Convention, each State Party shall take such measures as may be necessary, in accordance with its domestic law, to require financial institutions within its jurisdiction to verify the identity of customers, to take reasonable steps to determine the identity of beneficial owners of funds deposited into high-value accounts and to conduct enhanced scrutiny of accounts sought or maintained by or on behalf of individuals who are, or have been, entrusted with prominent public functions and their family members and close associates. Such enhanced scrutiny shall be reasonably designed to detect suspicious transactions for the purpose of reporting to competent authorities and should not be so construed as to discourage or prohibit financial institutions from doing business with any legitimate customer.

2. In order to facilitate implementation of the measures provided for in paragraph 1 of this article, each State Party, in accordance with its domestic law and inspired by relevant initiatives of regional, interregional and multilateral organizations against money-laundering, shall:

(a) Issue advisories regarding the types of natural or legal person to whose accounts financial institutions within its jurisdiction will be expected to apply enhanced scrutiny, the types of accounts and transactions to which to pay particular attention and appropriate account-opening, maintenance and recordkeeping measures to take concerning such accounts; and

(b) Where appropriate, notify financial institutions within its jurisdiction, at the request of another State Party or on its own initiative, of the identity of particular natural or legal persons to whose accounts such institutions will be expected to apply enhanced scrutiny, in addition to those whom the financial institutions may otherwise identify.

3. In the context of paragraph 2 (a) of this article, each State Party shall implement measures to ensure that its financial institutions maintain adequate records, over an appropriate period of time, of accounts and transactions involving the persons mentioned in paragraph 1 of this article, which should, as a minimum, contain information relating to the identity of the customer as well as, as far as possible, of the beneficial owner.

4. With the aim of preventing and detecting transfers of proceeds of offences established in accordance with this Convention, each State Party shall implement appropriate and effective measures to prevent, with the help of its regulatory and oversight bodies, the establishment of banks that have no physical presence and that are not affiliated with a regulated financial group. Moreover, States Parties may consider requiring their financial institutions to refuse to enter into or continue a correspondent banking relationship with such institutions and to guard against establishing relations with foreign financial institutions that permit their accounts to be used by banks that have no physical presence and that are not affiliated with a regulated financial group.

5. Each State Party shall consider establishing, in accordance with its domestic law, effective financial disclosure systems for appropriate public officials and shall provide for appropriate sanctions for non-compliance. Each State Party shall also consider taking such measures as may be necessary to permit its competent authorities to share that information with the competent authorities in other States Parties when necessary to investigate, claim and recover proceeds of offences established in accordance with this Convention.

6. Each State Party shall consider taking such measures as may be necessary, in accordance with its domestic law, to require appropriate public officials having an interest in or signature or other authority over a financial account in a foreign country to report that relationship to appropriate authorities and to maintain appropriate records related to such accounts. Such measures shall also provide for appropriate sanctions for non-compliance.

Measures for direct recovery of property (article 53)

Each State Party shall, in accordance with its domestic law:

(a) Take such measures as may be necessary to permit another State Party to initiate civil action in its courts to establish title to or ownership of property acquired through the commission of an offence established in accordance with this Convention;

(b) Take such measures as may be necessary to permit its courts to order those who have committed offences established in accordance with this Convention to pay compensation or damages to another State Party that has been harmed by such offences; and

(c) Take such measures as may be necessary to permit its courts or competent authorities, when having to decide on confiscation, to recognize another State Party’s claim as a legitimate owner of property acquired through the commission of an offence established in accordance with this Convention.