Asset Recovery Research Articles

Business recovery in Aceh and North Sumatra following the Indian Ocean Tsunami

This paper looks at patterns in business recovery two years after the 2004 Indian Ocean tsunami using longitudinal household survey data for Aceh and North Sumatra gathered 5–14 months and 17–28 months after the event. The base sample contains 2879 households. Applying a weighted probit model that controls for pre-tsunami characteristics the paper finds that the probability of households discontinuing businesses two years after the event increases significantly by 9.6% points in heavy damage areas compared to no/light damage areas. The paper argues that the differences in business recovery may be due to differences in asset recovery patterns. The tsunami wiped out 2/3rd the value of business assets in heavy damage areas and two years later, stocks were still at only half the pre-tsunami values. For these areas business asset growth was significantly correlated with continuity. Higher business discontinuity in heavy damage areas may also be due to higher losses to family and financial support networks experienced by households in these areas with a third of those that discontinued being in temporary accommodation for 6 months or longer. Increased aid and cash-for-work initiatives are unlikely to have been a disincentive to business continuation. The results suggest that given sufficient reconstruction of public infrastructure, asset recovery through livelihood interventions and formal financial market mechanisms is central to business continuity. It also suggests a closer investigation of households that have been displaced for a longer period as the support they require maybe systematically different to support required by other households.

Developing instruments for the recovery of criminal assets

There is a global trend towards the widespread application of confiscation of criminal assets, especially those obtained as a result of corruption offenses. Given that criminals are becoming increasingly intelligent and already know the tools used by law enforcement agencies, it is becoming increasingly difficult to fight crime. Through this article we set out to research new methods used by other states or proposed by some authors in the field of recovery of criminal assets. We all know the tools such as confiscation, requests for international legal assistance, seizure, but these are the tools that float above the water, long visible and known not only by law enforcement agencies but also by criminals. What is of real interest are the instruments that are at the ,,bottom of the sea” where not every state had the courage to sink, but they found a real treasure, materialized in recovered criminal property. Some tools are taken from the practice of British law, others are just ideas from practitioners who have worked in the field of criminal property recovery. Confiscation of property is an important tool in the fight against crime, we do not deny the importance of official instruments, but we consider it appropriate to widen the limits imposed by national legislation in this field.

Combating the crimes of money laundering and terrorism financing in Nigeria: a legal approach for combating the menace

PurposeThis study aims to investigate the Federal Government’s failure to combat money laundering and terrorism financing and the various hurdles to enforce the Money Laundering (Prohibition) Act, 2012 (as amended), effectively, which prohibits illegal earnings criminally induced investments in and out of Nigeria. This has had an impact on the country’s economic potential and its image in the international community. Despite many anti-corruption laws criminalising money laundering and terrorism financing, it is rated among the nations with the highest poverty index despite its immense natural resources.Design/methodology/approachThis study uses a conceptual legal method to help a doctrinal library-based investigation by using existing material. This study also makes use of main and secondary legislation, such as the Constitution, the Money Laundering (Prohibition) (Amended) Act 2012 and the Terrorism (Prevention) Act 2013 (as amended), as well as case law, international conventions, textbooks and peer-reviewed publications. A comparison of anti-money laundering legislation in Canada, the UK, Hong Kong, China and Nigeria was conducted, with lessons learned for Nigeria’s anti-money laundering and anti-terrorism financing laws. According to the findings, the Act is silent on the criminal use of legitimate earnings to fund terrorism and cultism.FindingsThere is no well-defined legal framework for asset recovery and confiscation. In Nigeria’s legal system, this evident void must be addressed immediately. To supplement existing efforts to prevent money laundering, the research develops a hybrid model that incorporates the inputs of government representatives and civil society organisations. This study suggests a complete revision of the Act to eliminate ambiguity and focus on the goals of global anti-money laundering and anti-terrorist funding restrictions.Research limitations/implicationsOne of the limitations of this study is the paucity of literature and data on money laundering and terrorist financing in Nigeria due to the secrecy around the crimes, which do not give room for the collection of statistical data and due to the transactional nature of the crimes. This is not to submit that no attempts have been made in the past or recent times to quantify the global value of money laundering and its effects on Nigeria’s economy. Such attempts have been inconclusive and inaccurate.Practical implicationsThe dearth of records on the magnitude of money laundering in Nigeria has limited generalising the research findings due to the limited access to some required information. However, this study is suitable for adoption in other sectors of the economy in dealing with clandestineness in money laundering and terrorism financing. Future researchers are commended to use the quantitative assessment method to appraise the effects of money laundering and terrorist financing laws and policies in Africa to supplement the current literature in the field.Originality/valueThe research develops a hybrid model that incorporates the inputs of government representatives and civil society organisations. This study suggests a complete revision of the Act to eliminate ambiguity and focus on the goals of global anti-money laundering and anti-terrorist funding restrictions.

Plea bargain dilemma, financial crime and asset recovery

PurposeThis paper aims to debate moral and legal dilemma embedded with plea bargaining (PB) and raises a question whether the approach of “PB” is a viable tool to tackle financial crimes and to what extent it contributes in recovery of stolen money. This paper critically examines the concept with reference to relevant laws of the USA, the UK, Pakistan and Nigeria.Design/methodology/approachThis study used legal scholarship, jurisprudence and other open source data to analyze issues in the application of PB as a viable tool in asset recovery and financial crimes.FindingsThis paper provides that PB has certain moral and legal dilemma in terms of legality and punishment; the concept offers a sense of escape from criminal punishment by simply return of partial stolen money or “settlement” in exchange of discounted punishment even without imprisonment, thus incentivizing an offender. Further, the concept is unregulated, misapplied especially in developing world like Pakistan and Nigeria, where plea bargain laws are mostly manipulated by white-collar individuals. Therefore, this study recommends the amendment of relevant laws pertaining to PB; construction of “plea bargain handbook” to prevent arbitrariness and misapplication and to ensure transparency in its application; legislations like Speedy Trail Act; creation of “Fast Track-Model Courts” and a balancing system between “settlement” and “deterrence.”Originality/valuePerspectives on PB are brought to bear from financial crime and malpractice and recovery of stolen money.

Asset recovery: nuova enfasi da parte delle nazioni unite nella lotta alla corruzione

The United Nations are long-term active in the fight against corruption, a phenomenon troubling developed and undeveloped nations alike. Quite recently, through GA Resolution no. 75/194, asset recovery eventually gained new momentum, with a series of recommendations towards the UN Member States. Hence, this article serves the double purpose to look into said Resolution in the first place, highlighting what’s new and, on the contrary, what can be considered an inheritance from previous attempts addressing the matter; secondly, to discern whether and where the measures auspicated by the General Assembly are already in place, and in what degree of implementation. In particular, the article aims at laying emphasis on the many differences between the attitude of the involved countries and regional organizations.

Damage, Loss, Economic Pressure, and Time Required For Family Asset Recovery of Garut Flash Flood Survivor

Abstrak. The research was conducted to analyze the effect of damage, losses and economic pressures on the length of recovery of family assets experienced by families victims of flash flood in Garut in 2016. This study used a cross-sectional method and a retrospective study involving 120 examples selected disproportionally stratified random sampling by place of residence namely in shelters and non-shelters (60 families each). The results showed that there were no significant differences between damage and losses and the duration of recovery of assets in families living in shelters and non-shores, while economic pressures were higher for families living in shelters. An important finding of this study is that the average length of asset recovery is 482 months. The regression test results show that the higher the father’s education the faster the asset recovery, while the greater the value of damage and the greater the economic pressure, the longer the asset recovery.

Efforts of apparatus law enforcement in realizing restorative justice in asset recovery results of corruption

One of the objectives of the enactment of Law Number 31 of 1999 concerning Eradication of Corruption in conjunction with Law Number 20 of 2001 is to return state losses. Therefore, criminal law enforcement prioritizes the return of state financial compensation from the perpetrators of criminal acts. This means that the return of state losses becomes the focus in eradicating criminal acts of corruption, with the hope of returning money to the state treasury, which is commonly known as asset recovery. Settlement of state losses in relation to Law of the Republic of Indonesia Number 31 of 1999 as amended by Law of the Republic of Indonesia Number 20 of 2001 has become an element of corruption, ex-Article 2 and Article 3 are strengthened by Article 4 so that it does not provide legal loopholes for settlement through restorative justice. The research method used is juridical normative with a statutory approach and a case approach. Asset return theory is a legal theory that explains the legal system of asset recovery based on the principles of social justice that provides the abilities, duties and responsibilities to state institutions and legal institutions to provide protection and opportunities for individuals in society to achieve prosperity.

Mechanisms for Recovering Libyan Smuggled Assets within Framework of the United Nations Convention against Corruption: آليات استرداد الموجودات الليبية المهرَّبة في إطار اتفاقية الأمم المتحدة لمكافحة الفساد

This study aims to shed light on the mechanisms for recovering smuggled assets which established by United Nations Convention against Corruption, as well as the extent of the success of the State of Libya in this field. Moreover, the most important obstacles that face the State of Libya. Therefore, to clarify this point, the concept of recovering smuggled assets and its importance as well as the legal framework for the asset recovery have studied by using the inductive and analytical approach. For that, this study could clarify that the United Nations Convention played an important role in organizing that process, as it approved legal mechanisms governing it, represented in direct recovery, international cooperation in the field of confiscation, automatic international cooperation, and finally the recovery of assets. However, these mechanisms need a real commitment on the part of States parties to activate it. Furthermore, this study explains that the State of Libya has so far failed to recover its smuggled funds, for several different reasons; therefore, it should benefit from the successful experiences in this field.

Analysis Of The Implementation Of The Non-Conviction-Based Concept In The Practice Of Asset Recovery Of Money Laundering Criminal Act In Indonesia From The Perspective Of Presumption Of Innocence

Purpose: This research aims to analyze the discourse on applying the non-conviction-based concept in the practice of restoring money laundering assets in Indonesia from the perspective of the presumption of innocence. Methodology: In this research, the method used was normative juridical using statutory, conceptual, and historical approaches. Results: The research results present a concept of the importance of the presumption of innocence and protection of the suspect's property before they are stated or convicted in court. Given the non-conviction-based concept in the assets recovery practice of money laundering crime, it is a mechanism for seizing state assets that criminals have taken, and it is possible to confiscate them again, even though the initial criminal act is not yet known for certain guilt so that it has the potential to castrate the suspect's human rights. Applications of this study: This article explains the importance of safeguarding the presumption of innocence and protecting the property rights of suspects. It is crucial to be used as a reference considering that the criminal procedural law system in effect in Indonesia is also inadequate to apply this concept. Thus, if this concept will be applied in the future, this study can be a reference in terms of drafting related regulations to safeguard against the presumption of innocence and the rights of suspects. Novelty/Originality of this study: The non-conviction-based concept in the asset recovery practice of money laundering crime is new. Therefore, the research presents to analyze whether the concept is under the existing legal system in Indonesia.

Asset recovery practices in combating money laundering: evidence from FATF mutual evaluation report of FATF member countries of Asia pacific region

PurposeThis study aims to understand the member countries’ current asset recovery mechanism based on two elements, namely, confiscation policy and asset recovery management framework.Design/methodology/approachContent analysis was performed on the Financial Action Task Force (FATF) Mutual Evaluation Report (MER) of eight countries.FindingsThe result showed that only a few countries established a centralised asset recovery centre or special task force to manage recovered assets.Research limitations/implicationsThis study is limited to information mentioned in the FATF MER.Practical implicationsThis study highlights the need to have a centralised asset recovery management centre as an initiative to improve the outcome of money laundering investigations. The study findings will benefit regulators to understand further the practical challenges of the asset recovery mechanism for future improvement.Originality/valueFATF recommends that each country establish a centralised asset recovery centre and work closely with the investigating officers and prosecutors in deciding on assets confiscation. However, the implementation is contingent on their local environment and resources at the member countries’ discretion. Therefore, this study aimed to understand the member countries’ current asset recovery mechanism based on two elements, namely confiscation policy and asset recovery management framework.

Legal regulation of the mechanism of recovery of unrecorded assets of related individuals and legal entities as a type of civil confiscation and its international legal principles

Legal regulation of the mechanism of recovery of unrecorded assets of related individuals and legal entities as a type of civil confiscation and its international legal principles

Mutual legal assistance in criminal asset recovery

Despite the efforts to combat illicit financial flows, money laundering and corruption, millions of lei are taken out of the country every year and hidden in other countries in the form of goods. The phenomenon of border crime is on the rise and legislation in this area remains stagnant. As the legislative provisions are partially present in various laws or conventions, some necessary provisions are missing at all. Thus, the need for a systematization and completion of legislation in the field of international legal assistance in criminal matters remains one of the priorities. The practice of other states has proven to be the most appropriate source of inspiration for improving and supplementing the legislation of the Republic of Moldova, the fact that is shown in this research. Transnational crime has shown the need for improving mechanisms to combat its impact, and facilitating the recovery of criminal assets has led the international community and the Republic of Moldova to adopt numerous conventions and treaties that still remain to be incomplete and insufficient for our country.

On the Effectiveness of Insolvency and Bankruptcy Code, 2016: Empirical Evidence From India

Abstract The Indian insolvency regime has undergone a historic change with the introduction of the Insolvency and Bankruptcy Code, 2016. This paper empirically analyses the effectiveness of the Code in the Indian economy. The paper also studies the insolvency frameworks that existed in India, the distinguishing features, and the legal framework of the Code. The analysis of the current status of the Indian insolvency regime with time series and cross-sectional data clarifies the non-performing assets trajectory, recovery rates, and time required under different recovery mechanisms, a summary of cases under the new Code and the status of India in the international insolvency systems. The empirical evidence of this study suggests that the Code is an improvement over its predecessors in terms of recovery rates, resolution of non-performing assets, and resolution costs. The Code should be subjected to necessary improvements to evolve and become a foolproof mechanism. Suggestions to that effect are offered in the final section.

ОРГАНІЗАЦІЯ ПРОЦЕСУ ЕФЕКТИВНОГО УПРАВЛІННЯ ОБОРОТНИМИ ТА НЕОБОРОТНИМИ АКТИВАМИ ПІДПРИЄМСТВА

The article is devoted to the analysis of current and non- current assets as an invisible part of business activities, influencing visibility, composition, quality of assets and the impact of effective asset management on the effectiveness of business. Budіvlі, obladnannya, syrovina, koshti, tsіnі paper, transport zabі, patents, licences, software products and other values - all business activities. It has been shown that the effective management of business assets is necessary for structurization, control of and recovery of assets for the exclusion of foreign surpluses, failures in the production and non-purchasing arrears. By itself, the establishment of effective management of current assets and non-current assets helps to overcome low functional problems, promotes competitiveness and adaptability to the market and guarantees high efficiency of asset management and regular renewal. The main approaches to the definition of the understanding of negotiable and non-current assets, and asset management have been reviewed. It was seen the difference between incomes to the management of current and non-current assets. A number of tasks have been formulated to face effective asset management, the main principles of effective management and the steps of organizing the process have been seen. An analysis of the features in the management of assets for current and non-current assets in the fallow in terms of features and structures was carried out, as well as the importance of optimizing, increasing the turnover and minimizing the cost of assets, as one of the key tasks in the asset management system, was demonstrated. As a result of the investigation carried out, it was confirmed the need to improve and implement the effective management of current and non- current assets and the reliability of business profitability in the form of successful operation. The role of the need to increase non-current assets and minimize the costs of current assets in the asset management system was also confirmed.

Study on Chinese Criminal Assets Sharing System

Criminal assets sharing is a common practice worldwide, which can encourage assets-inflow countries to cooperate more with each other, contributing to the criminal assets recovery of the victimized countries. This article explores the status quo of Chinese and American criminal assets sharing system, and put forward some measures to improve and develop this system in China. Judging from China’s current domestic and international legislation in the field of criminal assets sharing, as well as extraterritorial experience of the USA, which can be achieved by strengthening external cooperation, improving relevant domestic legislation, and establishing a case-by-case consultation mechanism.

IMPLEMENTATION OF INTERNATIONAL ANTI-CORRUPTION STANDARDS IN THE ECONOMIC SPACE

Corruption as an anti-social phenomenon was initially considered in the moral, social and legal dimension. It was not until the 1970s that corruption began to be studied as an economic category and became a subject of systemic economic analysis. It should be emphasized that in legal practice, corruption is most often interpreted as a socially dangerous illegal phenomenon, which is a consequence of blackmail, bribery, venality of officials that use their authority for personal enrichment, disregarding the interests of other members of society. Therefore, corruption is usually seen as a type of offense and criminal actions of officials in contradiction to the interests of the state and its citizens. And anti-corruption measures are associated with the improvement of the current legislation in terms of ensuring the inevitability of responsibility for corruption and corruption-related offenses. At the same time, given that corruption is inseparable from the shadow economy, it is necessary to study these two phenomena as a single system and consider anti-corruption policy as a key component of the fight against the shadow economy. The world community, in particular the EU, has a well-developed system of state regulation, which many countries are guided by. Despite this, the budgets of EU countries lose a certain amount each year from corruption schemes in the economic sphere. The aim of the article is to study the theoretical and institutional foundations of anti-corruption policy as a component of the fight against shadow economy to update the powers of relevant authorities in terms of their implementation in international anti-corruption standards in the economic space. In Ukraine, anti-corruption policy is implemented in the context of the creation of an institutional system to prevent and combat corruption, which includes specialized organizations, legislation, the formation of special mechanisms to prevent and combat corruption, etc. At present, the following bodies have already been established and are functioning in Ukraine: National Agency on Corruption Prevention (NACP), National Anti-Corruption Bureau of Ukraine (NABU), Specialized Anti-Corruption Prosecutor's Office (SAPO), Asset Recovery and Management Agency, High Anti-Corruption Court of Ukraine, and some tasks in the field of combating corruption are performed by the prosecutor's office and the National Police of Ukraine. The State Financial Monitoring Service of Ukraine collects, analyzes and publishes information on suspected cases of withdrawal of funds of possible criminal origin. The results of the conducted research indicate that most of the goals set by the Anti-Corruption Strategy for 2014-2017 were not achieved in the previous years. Consequently, measures should continue to be taken both to increase the effectiveness of institutional mechanisms for preventing and countering corruption and to eliminate corruption risks in different sectors (primarily those where there is a high experience of corruption and/or the worst perception of corruption of the institutions involved). The combination of both approaches can give the greatest result in reducing the level of corruption in the coming years, so this is the basis of the proposed draft concept of anti-corruption policy for 2020-2024. The implementation of international standards contributed both to the development of the system of prevention and counteraction to corruption (including specialized institutions) and to the reduction of corruption in some sectors by eliminating corruption risks, which were systemic and structural in nature. Further implementation of these commitments and intentions will have a positive impact on reducing corruption and demonstrates the political will at all levels to achieve tangible results of implementing anti-corruption policies.

The Tangled Path From Identifying Financial Assets to Cross-Border Confiscation. Deficiencies in EU Asset Recovery Policy

Abstract The article discusses the shortcomings of EU policy regarding cross-border asset recovery. The identified problem is a disjointed approach to the overlapping objectives of criminal proceedings: gathering evidence and securing assets for future confiscation. In the current EU legal framework, the process of recovery of assets, understood as a sequence of functionally related activities, lacks the continuity necessary to be effective. EU cross-border cooperation instruments in criminal matters do not meet the needs of this process, as they relate to separate investigative measures. Problems in this field have been indirectly reflected in the practice of Eurojust and the ejn. The article proposes a change in the perception of the initial phase of the asset recovery process, where the objectives of identifying and locating financial assets are combined with their provisional securing. This takes place under one mechanism of cross-border cooperation (an eio), prior to issuing a regular freeze or seizure order.

Global sanctions against corruption and asset recovery: a European approach

PurposeThis paper aims to critically examine whether it is timely and actionable for the European Union (EU) to adopt a global sanctions regime against corruption and how such a regime can be designed to maximise its efficiency. This paper argues that developing such a dedicated framework is necessary, feasible and supportive of the international fight against corruption and the efforts to enhance the recovery of corruption proceeds.Design/methodology/approachThis paper draws on reports, legislations, legal scholarships and other open-source data on global sanctions against corruption and the recovery of corruption proceeds.FindingsThis paper argues in favour of a dedicated global sanctions regime against corruption, which is necessary to mitigate significant risks for the EU internal market.Originality/valueTo the best of the authors’ knowledge, this study is one of the first to examine recent legislative developments, such as the EU Global Human Rights Sanctions Regime and the UK Global Anti-Corruption Sanctions Regulations, and the possible development of an EU-dedicated global sanctions regime against corruption with strong asset recovery components.

Procedural differences between mutual legal assistance and international informal assistance

Countries around the world face legal impediments when dealing with the recovery of criminal assets - especially developing countries that do not have the resources to deal with the skills and creativity of criminals. The scale of the problem is growing and shows us that a more effective approach is needed to recover stolen funds. There is a perception that ,,international cooperation” in an investigation and recovery of assets refers to international legal assistance - the formal process of requesting assistance from a foreign jurisdiction. However, in practice, there is a step that should be earlier in the process, which is often ignored or forgotten and which is just as important, if not more so. This is mutual administrative assistance, often described only as ,,informal assistance”. Almost all cases of corruption and embezzlement have a significant international dimension, whether it is foreign bank accounts and residences abroad or a chain of transactions circulating in several jurisdictions. To start informal international cooperation, all that is required is for an officer or prosecutor to pick up the phone or email his or her counterpart in another jurisdiction to request assistance in verifying the information to support a criminal investigation. This informal cooperation helps the investigation team to develop a better and more complete picture of the case. It helps them to identify official evidence that may be required from abroad to successfully prosecute and, ultimately, to recover any criminal assets with limited resources at hand

Drug crime transformation under the effect of online platforms

Many types of drug crimes are already known, but it is common to offender groups to implement them in an organised, coordinated, multi-level framework. Affected by online platforms, drug crimes are undergoing a transformation that presents new challenges for the authorities. Criminal groups also like to (re)take the opportunities offered by the Internet. Platforms that connect to the Dark Web, the Dark Internet (secret network form), have become increasingly popular over the past few years, thanks to the fact that there are also services available which are not available by traditional browsers. Coordinated cooperation between several countries, over several years, is needed to ensure successful detection in cyberspace. This is illustrated by a current EUROPOL report, published on 12 January 2021, which shows that a successful liquidation has occurred in the case of DarkMarket, one of the largest illegal marketplaces, requiring the cooperation of several European Union Member States and several non-European Union countries. In the face of the coronavirus epidemic, organised crime groups are still trying to remain active and resilient, which is not a challenge in the online space at this time, although drug delivery models needed to be changed, but they are trying to maintain the constant cycle of the market through their hiding methods. In my study, I am also looking for answers how the detection and recovery of criminal property is carried out at national and international level, in cases where drug crime takes place in the online space. What is the path of illegally acquired criminal property, how can financial profiling be carried out in these cases? In case of drug offences, we are talking about a special asset recovery where is no victim demanded, because there are very few known victims existing. With my study, I intend to capture the current topicality of drug crime, by detecting methods of committing crimes in the online space, internationally and domestically, and by exploring the current processes of asset discovery and recovery. In this way, I wish to provide results that can be used by the profession.