draining development.pdf - Khazar University

410 Draining Development?• By corrupting institutions in the private sector on whose co-operation prevailingAML systems increasingly rely, to secure their collusion in sabotagingthe effective implementation of AML measures;• Corruption will take advantage of differences in levels of implementation ofAML measures in different countries to frustrate trans-national co-operationto investigate money laundering or track proceeds of crime.19. No wrong has been done, that is, except through the process by which the concessionsare granted.20. Wrong (2000) identifies the nonperformance of the extraction industry in thepostcolonial period as a key problem in Mobutu’s Zaire.21. In cases of extortion by PEPs, the normal normative model of a bad corporationand a less bad bribe-taker is, arguably, reversed. However, in both cases, publicwelfare is diminished. The relative impact of models such as “publish what youpay” is not clear if government personnel are the extortionists rather than themore passive recipients of bribes.22. This might appear like a good recovery rate, though, in common with data onthe seizure or confiscation of the proceeds of crime generally, it is often difficultto disentangle what is seized or frozen from the assets that are merely ordered tobe confiscated and the assets actually recovered. Chaikin (personal communication)notes that, according to the Report of the Presidential Commission onGood Government’s Accomplishments for the year 2001, there were 24 civilcases (involving over 100 companies) pending before the Anti-CorruptionCourt in the Philippines to determine ownership of alleged illicit assets connectedwith the Marcos regime. These cases concern equities and domestic realproperties worth a total of P208 billion. (At current prices, this amounts toabout US$4.5 billion.) The 2001 figures are not current, but other sources statethat there have been few if any new domestic cases, and the Philippine governmentis likely to have lost some cases in court. The data problems are indicativeof the difficulties in externally tracking evidence in even well-attested cases.23. Offshore financial center, financial haven, and secrecy haven have been replacingthe more limited, older term tax haven.24. The European Union third anti–money laundering directive refers to “naturalpersons who are or have been entrusted with prominent political functions andimmediate family members or persons known to be close associates of such persons.”(Article 3 [8]). Article 2(a) of the UNCAC states that “public official” shallmean: (a) any person holding a legislative, executive, administrative, or judicialoffice of a State Party, whether appointed or elected, whether permanent or temporary,whether paid or unpaid, irrespective of that person’s seniority; (b) anyother person who performs a public function, including for a public agency orpublic enterprise, or provides a public service, as defined in the domestic law ofthe State Party and as applied in the pertinent area of law of that State Party; (c)any other person defined as a “public official” in the domestic law of a State Party.25. See “Wolfsberg FAQ’s on Politically Exposed Persons,” Wolfsberg Group, http://www.wolfsberg-principles.com/faq-persons.html.