draining development.pdf - Khazar University

408 Draining Development?2. A parallel argument could be made about mutual legal assistance treaties,including extradition.3. The national proceeds of crime confiscation schemes vary. The most commonare postconviction schemes that either (a) require offenders who wish to retainassets to show that the assets have been acquired legitimately for value or(b) require the prosecution to prove that the specific assets have been illicitlyacquired by the convicted persons. The latter was the conventional approachuntil the 1990s. However, there are, additionally, civil forfeiture–asset recoveryschemes that require proof that assets have been illicitly acquired only on a balanceof probabilities test. These include some, primarily, common law jurisdictionsin the developed world such as Australia, Ireland, the United Kingdom,and the United States, but also legislation of the newly established AML regimesof developing countries, such as Lesotho, Namibia, and South Africa.4. The lifestyle of the grand corrupt (and other offenders) may excite admirationand emulation (as well as fear and hatred) even if their savings are confiscatedor frozen.5. Kaira, C., and V. Wessels, “Namibian Firm Formed by Ex-Comverse Chief Alexander,”Jerusalem Post, February 26, 2007, http://www.jpost.com/Home/Article.aspx?id=52744.6. It should be borne in mind that threshold reporting sums such as US$10,000 or€15,000, which are modest in rich countries, may represent large sums in poorones.7. This is not merely a question of the perception of corruption within the FIU(the police are often mistrusted in developing countries); it is also a question ofwhether the FIU can be trusted to be discreet if reports are submitted on PEPsor local business elites.8. A White House press release (2010, 1) nicely expresses the issues, as follows:Under the Action Plan, G-20 Leaders agreed to lead by example in key areas,including: to accede or ratify and effectively implement the UNCAC and promotea transparent and inclusive review process; adopt and enforce lawsagainst the bribery of foreign public officials; prevent access of corrupt officialsto the global financial system; consider a cooperative framework for thedenial of entry to corrupt officials, extradition, and asset recovery; protectwhistleblowers; and safeguard anticorruption bodies.9. The acquittal of Chiluba was appealed by the prosecutor, but the Zambian governmentof the time (defeated in the 2011 elections) dismissed the prosecutorand withdrew the appeal for undisclosed reasons. It also declined to enforce anorder against Chiluba and others in the London High Court for the return ofUS$46 million in stolen funds. (See Attorney General of Zambia for and on behalfof the Republic of Zambia (Claimant) and Meer Care & Desai (a firm) & Ors[2007] EWHC 952.) In 2011, Chiluba died, and the future of these funds remainsuncertain despite the change in government.