The%20Swiss%20Experience%20in%20Returning%20Illicit%20Assets%20of%20PEPs

1
The Swiss Experience in Returning Illicit Assets
of PEPs

• Viktor J. Vavricka
• Directorate of International Law
• Federal Department of Foreign Affairs
• viktor.vavricka_at_eda.admin.ch
• G8/OAS-Seminar Miami, May 2-5, 2006

2
Two Examples

• Sani Abacha (Nigeria)
• November 2004 Nigerian commitment to use funds
  for education, health (HIV/AIDS) and basic
  infrastructure (national MDG strategy)
• February 2005 Swiss Federal Tribunal to allow
  return of remaining USD 458 million
• Coordination, stakeholders, negociations (and
  TKELA)
• September 2005 The Governments of Nigeria and
  Switzerland agreed on a transparent process to
  return the funds (win-win)
• Agreement with the World Bank to proceed with a
  Public Expenditure Management and Financial
  Accountability Review (PEMFAR)
• Civil society participation, funded by Swiss
  Government

3

• Angola
• 2002 Criminal proceedings in Geneva in
  connection with the restructuring of public
  Angolan debt towards the Russian Federation.
• Bilateral tensions and negociations with Angolan
  Government regarding the use of possible funds
• November 2003 preliminary agreement reached
• December 2004 case closed in Geneva (no
  irregularities found in the settlement of the
  public debt)

4

• Angola
• Geneva judicial authorities agreed to lift
  blocking order on four accounts containing USD 21
  million to enable the bilateral agreement to be
  implemented
• Agreement funds transfered to account with Swiss
  National Bank
• Account holder Swiss Agency for Development and
  Cooperation (SDC)
• Social and humanitarian program, joint
  implementation by executive secretariat
• SDC pays overhead costs

5
Modalities for Disposition and Transfer

• Transfer to an account of the victim state (no
  strings attached),
• Transfer to an account of the victim state,
  monitoring by recipient state or a third party
• Transfer to an institution which uses the funds
  in favour of the victim State (transfer via a
  third party, e.g. debt reduction, country
  specific trust fund)
• Transfer to an institution which uses the funds
  in favour of the population of the victim state
• Transfer to the returning country's development
  cooperation or humanitarian projects in favour of
  the population of the victim State
• No transfer at all.

6
Elements of Swiss Policy

• Fundamental interest that assets of criminal
  origin are not invested in CH
• Comprehensive range of legal and institutional
  measures to protect financial center against
  inflow of illegal assets
• If assets of criminal origin find their way into
  CH, CH wants to return them quickly to the
  country of origin
• Banking secrecy does not protect criminals
• Coherent measures at international level, need
  for cooperation between financial centers
• G8 Disposition Paper

7
G8 Disposition Paper

• Transparency and accountability in the transfer
  and administration of returned assets
• Presumption of transfer to the benefit of the
  people harmed
• Case-specific treatment
• Encourage UNCAC principles
• Consistency and coordination
• Use of an agreement
• Principles are fully in line with the Swiss
  experience

8
Thank you

• Viktor J. Vavricka
• Directorate of International Law
• Federal Department of Foreign Affairs
• G8/OAS-Seminar Miami, May 2-5, 2006