draining development.pdf - Khazar University

376 Draining Development?either by the governments they have attacked or by successor governments(Ribadu 2010). This reflects the political economy reality of AML:it requires the support of the powerful who, in a corrupt country, havethe most to fear from its effectiveness.The chapter also examines the role of domestic AML in dealing with(1) the proceeds of corruption and (2) those proceeds of crime and licitactivities that are used to finance corruption within developing countries.It suggests that dictators and elected kleptocrats usually plan onstaying in power and expect to do so. For these purposes, they requirefunds, as well as career positions to distribute to those who are useful inmaintaining their power and gaining rent-seeking opportunities. Theymay also purchase vehicles and properties in their domestic jurisdictionsin excess of their official incomes. So, opportunities exist for AML interventionslocally, as well as in the rich world.The Goals of AML Policies in Developing CountriesLooked at historically, the growth of AML measures has been motivatedlargely by the desire of rich countries to reduce the impact of crimesupon their own citizens, residents, and businesses. 2 The theory is thatAML will demotivate offenders, shorten criminal careers, and disrupt orprevent the loose construct known as organized crime. It does this byincapacitating organizational growth and stripping those assets underthe control of criminals that offenders cannot demonstrate they haveacquired by legitimate means. 3 Another aim of AML is to increase publicsatisfaction with criminal justice and administrative regulation and toreduce the attractiveness of criminals as role models by showing thatcrime does not pay. 4 Note, however, that past lifestyle expenditure cannot,in practice, be recovered. The applicability of this model to grandcorruption is taken for granted in the literature, and, in particular, it isassumed that, if PEPs and their close families cannot deposit large sumsin rich countries, they will not commit corruption.The mechanism for achieving these goals is to develop an internationalchain with no weak link, making it impossible for people to retainthe proceeds of multifarious crimes both outside and inside their ownjurisdictions. Though most mutual legal assistance is requested by richcountries from other rich or from poor countries, this also tends to be