Barriers to Asset Recovery

Abstract

Despite international commitments, significant barriers remain in the process of recovering the proceeds of corruption from foreign jurisdictions. This volume identifies and analyzes the impact of these obstacles and proposes recommendations for overcoming them. Developing countries lose an estimated US$20 to 40 billion each year through bribery, misappropriation of funds, and other corrupt practices. Thus, over a 15-year period, roughly US$300 to 600 billion disappears. Most of these funds stolen from developing countries are believed to be transferred abroad and hidden in foreign jurisdictions. Regrettably, only US$5 billion in stolen assets have been repatriated over the last 15 years. This huge gap in actual recovery of stolen assets points to the presence of significant barriers that are impeding asset recovery. In order to address this gap, the Stolen Asset Recovery (StAR) Initiative has launched Barriers to Asset Recovery, a thorough analysis of these impediments and their negative impact. International cooperation is critical to tracing and recovering stolen funds. The United Nations Convention against Corruption provides a key platform to foster such collective action, as evidenced by the commitments taken by governments, civil society, and the private sector, but is not a panacea, because several of the barriers identified cannot be overcome through the convention. Drawing on the expertise of practitioners with hands-on experience, this study is intended to guide policy makers and promote practical recommendations aimed at assisting jurisdictions in devising effective policies to vigorously recover stolen assets. The G-20, international organizations, financial institutions, development agencies, and civil society have key roles to play to ensure concrete progress in implementing these recommendations.