Peru
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From budgets to bridges: how better public finance management improves lives in Peru and beyond
How public money is managed at the local level has a direct impact on people's lives – from whether children get their school books to the conservation of local environments on which many communities depend for their health and livelihoods. For more than a decade, the Basel Institute on Governance and the Swiss State Secretariat for Economic Affairs SECO have partnered with regional and municipal governments across Peru to strengthen public financial management and improve public service delivery. Through the Programa GFP Subnacional, a dedicated team combines practical technical assistance with innovative approaches, including data analytics, digital tools and behavioural interventions. Together, these help governments make better decisions, use resources more effectively and communicate better with the people they serve. In this Q&A, Programme Director Carlos Vargas explains how Programa GFP Subnacional – the Subnational Public Finance Management PFM programme – works, what it has achieved and why its lessons matter beyond Peru. How does the programme help governments deliver better services? Broadly speaking, the programme aims to enhance processes for public service delivery and improve the capacity of subnational governments to use public resources responsibly. In practice, this means really hands-on assistance with things like tax management or budget planning that both covers the required resources e.g. teaching materials and considers what’s needed to deliver a service e.g. enough vehicles to distribute the materials to schools . This in turn ensures that citizens receive public services in the quantity and quality they need and projects are completed within budget and on time. In other words, the programme aims to make a real difference in people's lives – particularly in areas like education, health, biodiversity conservation and the fight against climate change. Our advisors work hand-in-hand with local officials, providing technical assistance, training and support with technology in line with national priorities and systems. What difference has the programme made in terms of revenue generation? The results have been significant. One of the clearest examples comes from Tarapoto in the San Martín region. Through automated WhatsApp reminders, streamlined processes and a new online payment system, the municipality increased property tax collection. The additional revenue helped fund a bridge that now provides around 800 pupils with safe, direct access to their school. In the Municipality of Piura, we helped automate tax collection processes using algorithms and artificial intelligence to better understand taxpayer behaviour. This allowed us to group taxpayers into categories and design tailored communication strategies for each, which helped increase property tax revenue – funds governments need to invest in public services. How about in education or conservation? In education, we have assisted regions to ensure that around 95 percent of school materials now arrive on time before the start of the school year. The programme has also contributed to the timely delivery of vaccines and medicines. On biodiversity conservation, we have supported three regional governments in Peru to establish a baseline for deforestation, drawing on 24 years' worth of data to identify zones that are particularly vulnerable to deforestation and other illegal activities. Based on this, we have developed an early warning system that enables regional governments to act more quickly and direct their limited resources towards the most critical areas rather than trying to cover vast territories. Why are regional and municipal governments so important? In Peru, public spending is highly decentralised – around 35 to 45 percent of the budget is allocated to regional governments and municipalities. These are the entities closest to citizens. If this final link in the chain does not work well, citizens will not receive the services they need. How does better public finance management reduce corruption risks? By improving the efficiency and transparency of processes within public bodies, we limit discretionary power and reduce opportunities for corruption. The programme has generated concrete evidence of this. The regional government of Loreto – Peru’s largest region – for example, rose from 18th to 4th place in the national ranking of corruption prevention capacity after becoming a programme beneficiary. This kind of progress matters, because corruption ultimately undermines the delivery of public services and the responsible use of public resources. What can other countries learn from Peru's experience? We see the Programa GFP Subnacional as a laboratory for public finance innovation. Over more than a decade, it has generated proven tools and approaches that improve efficiency, reduce losses and help ensure the quality of public services. This body of evidence – tested and refined over time – represents a form of global learning. The lessons and best practices the programme generated can be shared not only across Peru but also with other countries, where they can be adapted to local needs. In this sense, the Swiss government's investment in the programme goes beyond impact in a specific region: it is an investment in generating knowledge and innovations that can inform public financial management reforms and help improve public services and the lives of citizens elsewhere.
Where asset recovery really happens: Peru advances landmark restitution initiative
These administrative steps are where asset recovery really happens… when dirty assets are transformed into resources that support law enforcement and serve the public good. With these words, Oscar Solórzano, Head of Latin America at the Basel Institute on Governance, captured the often unseen but transformative impact of asset recovery. His remark follows a high-level meeting in Peru marking the final phase of a pioneering international agreement. On 26 March 2026, the Ministry of Justice and Human Rights of Peru hosted the Meeting of the States Parties to the Tripartite Agreement between Peru, Switzerland and Luxembourg on the transfer of confiscated assets. Opened by Minister Luis Enrique Jiménez Borra, the meeting brought together key Peruvian institutions alongside representatives of the Swiss authorities to review progress, assess institutional impact and discuss the next steps towards closure. From frozen assets to public benefit Through this cooperation, assets derived from corruption cases and previously frozen abroad have been returned to Peru and reinvested in strengthening the justice system. Projects funded under the agreement have enhanced the capacity to investigate and prosecute corruption and organised crime, improved coordination between institutions and strengthened mechanisms for asset recovery and asset management. The National Program for Seized Assets PRONABI has overseen the transparent and accountable administration of these funds, ensuring they directly support institutions at the forefront of combating corruption. Highlighting the broader significance of the initiative, Minister Jiménez Borra stated: International cooperation can turn assets derived from corruption into concrete tools for strengthening justice and public integrity. The Tripartite Agreement shows how recovered assets can be reinvested to benefit citizens and strengthen the rule of law. Strong international partnership and Swiss engagement Peru’s tripartite collaboration with Switzerland and Luxembourg has provided a strong framework for cooperation. It demonstrates how countries can work together to return illicit assets in a transparent and impactful way. The Basel Institute on Governance, through its International Centre for Asset Recovery ICAR , has played a central role in supporting implementation by providing technical advice and accompanying institutions throughout the process. Paul Garnier, Ambassador of Switzerland to Peru, noted: This meeting provides an important opportunity to review the current status of the project and the progress achieved so far. Switzerland also values the continued technical support provided by the Basel Institute on Governance throughout the implementation of this initiative. During the technical session, Oscar Solórzano and Límberg Chero, a senior member of the Basel Institute’s Public Finance Management programme in Peru, shared reflections on the implementation, impact and sustainability of the projects. Celso Alfredo Saavedra Sobrados, Executive Coordinator of PRONABI, emphasise that: PRONABI has worked to ensure that the restituted funds are administered with transparency, efficiency and accountability, so that they directly contribute to strengthening the institutions responsible for combating corruption. He also highlighted the close and timely technical support provided by the Basel Institute on Governance during the implementation of the project. Setting a regional example for asset recovery The experience demonstrates how sustained international cooperation, combined with targeted technical support, can ensure that recovered assets deliver tangible benefits for citizens and reinforce the rule of law. It also offers a compelling example for other jurisdictions, showing that asset return can be both practical and impactful when underpinned by trust, transparency and shared objectives. The hope is that this model will inspire further mutually beneficial efforts to return stolen assets and put them to work for the public good.
A career with purpose in public finance management: Límberg Chero
Our colleague Límberg Chero has played an important role in establishing the Basel Institute’s strong presence in Peru. From the early years – even before a formal office existed in Lima – to his current work with the Subnational Public Finance Management Programme Programa GFP Subnacional , his journey reflects a great passion for fighting corruption. It began far from the capital, in an ancient town in northern Peru, and was strengthened through rigorous academic training and years of public service. This article is part of a series on careers in fighting financial crime and opportunities to learn and study with the Basel Institute. The take-off in Peru My journey at the Basel Institute on Governance began even before the Lima office existed. In 2014, together with colleagues from the Basel Institute – including our dearly missed Managing Director of two decades, Gretta Fenner, and my colleague Óscar Solórzano – we launched a public finance management project funded by the State Secretariat for Economic Affairs of Switzerland SECO . Although centred on macroeconomics and fiscal policy, its essential goal was to make the public budget tangible and meaningful for citizens. To do this, we moved beyond traditional approaches and integrated innovative tools, like the use of behavioural science to prevent corruption and foster integrity in the management of public finances. This comprehensive perspective – a novelty in Peru at the time – was key to the project proposal’s success. Since then, the Subnational Public Finance Management Programme for regional and municipal governments in Peru has retained SECO’s trust for more than 10 years. The secret behind this success lies not only in improved processes and fiscal discipline, but in the continuous work with people committed to change. Internally, the Basel Institute’s team is multidisciplinary, open to change and committed to bridging practice and academic insight. Bridging differences for sustainability Working at the Basel Institute on Governance is truly a privilege. Our Lima office has gained remarkable regional recognition thanks to a distinctive approach: practical, rigorous and focused on building strong relationships with key actors in the fight against corruption, money laundering and terrorist financing. I currently lead the Subnational PFM Programme’s Interinstitutional Coordination, ensuring the programme’s effectiveness and, above all, the sustainability of reforms at subnational levels, in alignment with national efforts. This work requires the continuous reconciliation of the different “languages”, worldviews and objectives of people across Peru’s diverse regions. Our aim is to craft strategies and messages that resonate equally to ministries, regional governments and municipalities – aligning technical agendas with political ones, and engaging civil society and academia along the way. This challenge becomes more manageable because of my background: I come from an ancient town in northern Peru, Monsefú. Being perceived as someone close yet trained in competitive academic and professional environments fosters trust and legitimacy. From economics to a global mission As a child, leaving my town felt impossible. Universities were located in other regions and the educational options available largely led to local career paths tied to a modest economy with little real opportunities. At that time, the country had not yet experienced the trade openness or business development it has today. Through hard work and the trust of people who believed in me, however, I earned scholarships that allowed me to study in highly competitive environments in Peru’s capital, Lima, more than 1,000 kilometres away from my hometown. My foundations were solid: I completed my undergraduate studies in economics and later specialised through the Central Bank’s Economics Programme, which admits only 30 candidates out of thousands of applicants, as well as through an internship at the World Bank in Korea. I worked as an economist at institutions such as the Ministry of Economy and Finance, the Central Reserve Bank of Peru, the Andean Community CAN and the Inter-American Development Bank IDB . At that time, my professional life felt complete: it combined specialised technical work with teaching and active participation in international networks. These included the Andrés Bello Agreement Network, which brought together university researchers from multiple countries to reflect on and advance regional integration in Ibero-America, as well as the Puentes Network, which focused on promoting transparency in investment by Latin American companies. But everything changed when I fully grasped the scope of the challenges posed by global corruption. I never imagined my economics degree would only be the starting point of a much bigger journey. From that moment on, my purpose became clear: to dedicate all my experience to strengthening this fight against forces that hinder global prosperity. Innovating with little budget In Latin America, the Basel Institute is known for results-oriented innovation. I have witnessed firsthand how every new skill quickly finds a practical application and how we can make significant contributions without the need for additional funding. For example, I could draw on my Master’s degrees in Process Innovation and Government Control, and in Public Management and Education Andragogy to enrich various initiatives we pursued, such as: supporting regional governments in implementing structural reforms in significantly shorter timeframes; strengthening Peru’s Public Finance Management Experts Network, which was recognised during Peru’s National Innovation Week; and reducing dropout rates and increasing course completion in our Internal Control and Integrity courses through, among other things, the introduction of “virtual coffee breaks”. During the pandemic, we leveraged my background in education to enhance our online learning and training approach and results. For example, we started to deliver courses and training across the country via Facebook, a platform that at the time did not charge for mobile data usage and allowed public officials to participate even using low-end mobile phones. These courses have since been integrated into Basel LEARN – the Basel Institute’s online training and learning hub. Together, these efforts enabled us to develop courses that reached more than 6,000 participants in five years – all without additional funding. It’s all about people My work has focused on ensuring the sustainability of tangible improvements to public finance management that the PFM Programme’s experts helped implement in areas as varied as: distribution of vaccines and educational materials for children; property tax collection in major cities; restitution of confiscated funds; and the fight against “green corruption”. In this context, the most valuable asset is our network. I have more than 20,000 contacts on my business phone – all professionals who directly or indirectly contribute to the Programme’s goals, and above all, friends committed to building a better Peru. This network generates mutual benefits: it enables the rapid dissemination of good practices, drastically reduces event preparation costs we secure many venues at zero cost and ensures massive impact. Colleagues across the Basel Institute are a vital part of this network. Our close collaboration has led me to take part in a wide range of diverse and fascinating projects – from serving as a director and writer for several programme-produced videos, to moderating international events on asset recovery, and exchanging methodologies used in public finance management that can be applied to asset recovery and repatriation. The foundation that inspires and sustains hope The Peruvian context presents unique challenges. There is high political volatility, evidenced by the fact that there have been eight presidents in the past 10 years despite only two presidential elections in that period. This means that “VUCA” volatility, uncertainty, complexity and ambiguity and the notion of “chaos” are part of daily life. Yet, beneath this instability lies a “subsoil” of ethically committed public officials and technical professionals who allow progress to continue. They are my daily source of inspiration. As I often say: There are more good people than bad – they just make less noise. This reflects a reality: the visible efforts of honest Peruvians provide a stronger foundation than the corruption cases that shake us, even if public perception sometimes suggests otherwise. In sum, I am deeply grateful for the privilege of engaging with my country and its challenges through work that strengthens public integrity and the fight against corruption. Thank you, Basel Institute – and its magnificent team around the globe – for allowing me to continue serving the world, and especially my country. Inspired? Take a look at the learning opportunities we offer at the Basel Institute for individuals who are equally passionate about fighting corruption and financial crime: Basel LEARN – our online training and learning hub with free eLearning courses and lots more Basel STUDY – our postgraduate programmes on anti-corruption and asset recovery with the University of Basel
Dismantling Peru’s most successful asset recovery law is a step backwards for the country – and justice
Ver versión en español. Sometimes it seems like high-level support for the fight against corruption and crime is being turned on its head. That includes in Peru, a close partner country of the Basel Institute on Governance for more than a decade. A flagship achievement in this time has been the adoption of a new non-conviction based forfeiture law in 2018, Extinción de dominio, and its rollout across the country via a judicial subsystem including decentralised and specialised prosecutor’s offices, tribunals and appeals courts. Peru’s Extinción de dominio law is widely seen as a gamechanger in the fight against corruption and serious organised crime. Last year, the Attorney General applauded the law’s use to recover USD 94 million in illicit assets. It has been applied in both domestic and international cases that have set important precedents and bolstered the message that crime doesn’t pay. Since the adoption of the United Nations Convention against Corruption UNCAC in 2003, non-conviction based forfeiture has become an international standard. The Extinción de dominio law is based on a common model in Latin America that was first introduced by the United Nations Office on Drugs and Crime UNODC . It aligns with the requirements of the Financial Action Task Force FATF , whose updated Recommendations 4 and 38 now make non-conviction based forfeiture legislation mandatory. GAFILAT, the Latin American chapter of the FATF, has also recognised the usefulness of this tool in the Latin American context. Yet now it is on a cliff edge, on the verge of being dismantled or weakened to the extent that it is almost useless. Fighting against the rule of law At the end of 2024, we warned of an attack on Extinción de dominio in the form of Bill 3577-2022. This seeks to amend Peru’s Extinción de dominio legislation by, among other things, making its application conditional on a criminal conviction. In doing so, the Bill distorts the legal concept of non-conviction based forfeiture. By introducing a criminal conviction as a basic condition for its application, the bill renders the current law almost useless. It introduces a fundamental contradiction that lacks logic or legal justification. Similar restrictions have been introduced in Ecuador recently, which have drastically reduced the scope of the law’s application. Unfortunately, the Bill was passed by Congress at a second reading on 10 April 2025, despite concerns raised by the Attorney General’s Office, Judiciary and even the President. At this point, it is unclear whether the Bill will affect only future cases or whether it will impact the thousands of ongoing cases at the national and international levels. Legal principles and common sense would suggest the former, but the entire process of amending the law has been driven more by political than legal considerations. Potential consequences What seems clear is that the defence lawyers of those impacted by the new Bill will soon take action to release assets currently secured by preventive measures. This includes high-profile political figures, such as former presidents convicted of corruption in the Lava Jato Odebrecht corruption scandal. For example, assets seized by specialised Extinción de dominio prosecutors in relation to the recent conviction of former President Alejandro Toledo risk being released. It's not only about corruption. Ongoing Extinción de dominio proceedings are also targeting illicit assets linked to other forms of serious and organised crime, like drug trafficking and environmental crimes such as illegal fishing, mining and deforestation. These cases too would fall by the wayside. What’s the rationale? Like any novel law, there have been some inconsistencies and concerns around its application in practice. I explored these concerns in a recent Working Paper and argued for closer alignment with international human rights standards in order to ensure trust and legitimacy, as well as international cooperation. These concerns were triggered by the law’s application in practice , not by its concept or legal/social legitimacy. In brief, the issues fall into two camps: Technical: Prosecutors and judges have in some cases applied criteria that are not in line with those developed by human rights tribunals. Analysis of flawed cases shows that it has been applied to confiscate assets of innocent third parties or of companies due to the fault or negligence of their employees. Specialised training for relevant prosecutors and judges on sensitive and technical issues such as the infringement of fundamental rights would go a long way to eliminating this risk. Political: One reason for the above issue is the emergence of a “tough” discourse against organised crime. This attracts many supporters and gives rise to populist rhetoric of efficient law enforcement against the “bad guys". It has led to misperceptions that the Extinción de dominio law is a cudgel to wield against organised crime. The consequences are a small number of violations of international standards that have given opponents a valid argument to attack the essence of the law, even though the errors stem from its implementation. Criticism is the basis for continuous improvement, so we welcome the raising of these concerns through open discussion. We believe that addressing them should be a priority and will ultimately make the law more effective. The Basel Institute has actively supported initiatives to do this, for example through conventions of judges and prosecutors and through open dialogues with experts, as well as through our participation in GAFILAT and other relevant asset recovery forums. Wider implications In my view, and the view of many of my counterparts across Peru and the region, this attack on Extinción de dominio will have a disastrous impact on the fight against corruption and other serious crime in Peru. As well as potentially destroying or diminishing ongoing cases, it eliminates the deterrent effect of asset recovery laws and opens the door to impunity. It will also likely harm Peru’s international standing. The FATF’s updated Recommendations 4 and 38 not only make the adoption of non-conviction based forfeiture laws mandatory; the FATF has made it clear that such a law must also be operational and effective, and it must respect human rights. The Bill is contrary to the letter and spirit of these Recommendations and deeply contradicts them. This legislative setback is expected to affect Peru’s performance in its upcoming fifth-round mutual evaluation by the FATF. The consequences of this could have significant reputational and economic consequences for Peru, particularly if it is grey listed. Reasons for hope My first hope is that the amendments are not ratified by the President of the Republic, who has the constitutional power to veto them. A second source of hope is the judicial branch. Resistance can be expected from frontline judges in specialised Extinción de dominio lower courts, given that the legal actions to unfreeze assets mentioned above will most likely be decided in these courts. Ultimately, it will probably be the Supreme Court or the Constitutional Court that will determine if and when the new Bill will be applied and rule on its compatibility with the constitution and international law. Finally, there is hope of support from the international community, as this issue is relevant not only for Peru. It is also a critical issue for other countries seeing similar attacks on laws that are proven to be effective against high-level corruption and organised crime. Learn more Working Paper 54: Targeting illicit wealth through non-conviction based forfeiture by Oscar Solórzano explores Extinción de dominio laws in Latin America and argues for their closer alignment with international human rights standards to foster trust and legitimacy. View a series of conversations on YouTube by experts of the Basel Institute’s International Centre for Asset Recovery debating the topic. See Oscar Solórzano’s 2024 statement in Spanish on this issue.
Peru’s Integrity Week celebrates transparency and good governance, including for the environment
While most of the world celebrates International Anti-Corruption Day on 9 December, Peru has kickstarted a new tradition: an entire week dedicated to integrity, transparency and anti-corruption events and celebrations. The country celebrated its first Semana de Integridad Pública – Public Integrity Week – last December, following the passing of a law that dedicates the second week of December each year to the occasion. The aim is to reinforce the country’s commitment to transparency and ethics in public administration. Our teams were closely involved in the various events that took place across the country. Building integrity in public finance management Members of our Subnational Public Finance Management programme or Programa GFP Subnacional organised and participated in 14 events in nine different regions. In total, the events involved more than 2,000 individuals in person and a similar number online. Topics included ethical leadership, policies and strategies to mitigate risks and promote transparency in public administrations, and the role of asset forfeiture in fostering integrity and reducing impunity for corruption. The discussions and workshops underscored the commitment of the Swiss-funded programme to: Strengthen capacities: Provide tools and practical knowledge to identify and manage the risks that affect public integrity. Promote multi-stakeholder dialogue: Encourage collaboration between different parties, including government, the private sector and civil society, to address ethical and transparency challenges together. Inspire action: Promote a culture of integrity and accountability as the basis for inclusive and sustainable development. Green corruption high on the agenda Our Green Corruption prevention team, funded by the UK's Conflict, Stability and Security Fund, also participated in 18 separate events, reaching over 6,000 participants in person and more online. Our team drew attention to the fact that corruption is a key enabler of illegal trade in natural resources. Illegal logging in the Peruvian Amazon, illegal mining or wildlife trafficking pose serious threats to the country’s environment, people and economy. But these complex crimes can’t be addressed without an active focus on corruption prevention. The prominence of this topic during Integrity Week is an important achievement. It reflects increased awareness and interest in green corruption among Peruvian authorities, specifically from the Ministries of the Environment and Agriculture, as well as the national Secretariat for Public Integrity that led the organisation of the events. Learn more See the press release in Spanish . See photo highlights from events in Loreto. Watch a series of three debates about asset recovery law and practice in Peru, released at the same time as Integrity Week.
Publications
Preventing corruption in the timber value chain: Risk management experiences in Latin America
Corruption in the timber value chain is a major challenge for environmental sustainability and governance in Latin America.
This report presents the application of a corruption risk management approach by environmental authorities in Bolivia, Ecuador and Peru, implemented through technical assistance from the Basel Institute on Governance’s Green Corruption programme.
Key corruption risks
The report describes the main corruption risks identified in collaboration with five environmental authorities responsible for integrity in the timber value chain, covering:
- The granting of forestry rights
- The issuance and use of timber transport waybills
- The control and supervision of authorised actors.
The main corruption risks identified involve:
- Improper agreements between public servants and third parties
- Abuse of authority
- Undue influence or pressure from superiors
Mitigation measures
Planned mitigation measures fall into four main categories:
- Regulatory improvements, including updating procedures, closing implementation gaps and improving efficiency
- Strengthened supervision, such as file tracking systems and alerts to reduce discretion
- Enhanced communication, including multicultural approaches for Indigenous and rural communities
- Cross-cutting measures to promote integrity such as awareness-raising, ethical reflection and training
Given common patterns across natural resource sectors, these measures may be relevant for other environmental agencies, though they should be adapted to local contexts.
Lessons learned
The experiences in Bolivia, Ecuador and Peru highlight the importance of tailoring risk management approaches to national contexts, ensuring institutional leadership and fostering inter-institutional collaboration. They also underline the value of peer learning and cross-border exchange.
La extinción de dominio desde sus principios
El Programa de la Gestión de Finanzas Públicas GFP Subnacional de la Cooperación Económica Suiza – SECO y el Basel Institute on Governance presentan la publicación académica: La extinción de dominio desde sus principios. Esta nueva edición ofrece una perspectiva jurídica rigurosa y actualizada sobre uno de los instrumentos más relevantes en la lucha contra el crimen organizado y la corrupción.
La extinción de dominio, regulada en el Perú por el Decreto Legislativo N.° 1373, se ha convertido en una herramienta clave para la recuperación de activos ilícitos. No obstante, su implementación ha generado debate sobre su compatibilidad con los principios del Estado constitucional de derecho. Esta publicación busca aportar a dicho debate, abordando los fundamentos jurídicos del decomiso sin condena y resaltando la importancia de su aplicación conforme a los valores democráticos y al debido proceso.
El volumen reúne los aportes de destacados especialistas que analizan, desde distintas aristas, los principales retos legales e interpretativos en torno a la extinción de dominio. Entre los temas tratados se incluyen los derechos en disputa dentro del proceso, la aplicación temporal de la norma, la protección del tercero, la autonomía frente a otras decisiones jurisdiccionales, la carga de la prueba, la cosa juzgada, el principio de prevalencia y los alcances de la publicidad y la reserva.
Con este aporte, el Programa GFP Subnacional reafirma su compromiso con el fortalecimiento de las capacidades institucionales y la promoción de una justicia más efectiva y transparente. La extinción de dominio desde sus principios está disponible en formato digital y de libre acceso.
Elaboración de contenidos: Jeampool Johnnatan Giampier Gonzales Córdova, Sergio Enrique Rodríguez Salinas, Sergio Jiménez Niño, Erick Vladimir Guimaray Mori, Joseph Celso Domínguez Miñano, Jhanira Yamali Morales Aniceto, Walther Javier Delgado Tovar, Deily Arlene Pereda Rodríguez.
English
This research paper covers the principles and practice of Extinción de dominio, Peru’s non-conviction based forfeiture law. It is a publication of the Subnational Public Finance Management Programme of the Swiss State Secretariat for Economic Affairs (SECO) – Economic Cooperation and Development division and the Basel Institute on Governance. It offers a rigorous and up-to-date legal perspective on one of the most important instruments in the fight against organised crime and corruption.
Extinción de dominio, a non-conviction based forfeiture law regulated in Peru by Legislative Decree No. 1373, has become a key tool for the recovery of illicit assets. However, its implementation has generated debate about its compatibility with the principles of the constitutional rule of law. This publication seeks to contribute to this debate by addressing the legal basis for non-conviction based forfeiture and highlighting the importance of its application in accordance with democratic values and due process.
The volume brings together contributions from leading experts who analyse, from different angles, the main legal and interpretative challenges surrounding the extinción de dominio law. Topics covered include the rights at stake in the process, the time-limited application of the rule, the protection of third parties, autonomy vis-à-vis other judicial decisions, the burden of proof, res judicata, the principle of prevalence, and issues around publicity and confidentiality.
With this contribution, the Basel Institute and Subnational PFM Programme reaffirm our commitment to strengthening institutional capacities and promoting more effective and transparent justice.
Authors: Jeampool Johnnatan Giampier Gonzales Córdova, Sergio Enrique Rodríguez Salinas, Sergio Jiménez Niño, Erick Vladimir Guimaray Mori, Joseph Celso Domínguez Miñano, Jhanira Yamali Morales Aniceto, Walther Javier Delgado Tovar, Deily Arlene Pereda Rodríguez.
The James Stone case: Peru’s fight to recover assets (The Academy Bulletin)
In an article published in the Fall 2024 issue of the Bulletin of the International Academy of Financial Crime Litigators, Oscar Solórzano describes an asset recovery case between Peru and Luxembourg involving a businessman named James Stone.
It provides insight into some of the challenges that some States face in recovering proceeds of corruption from international financial centres, despite the binding rules and soft laws adopted in recent years. It looks at both the mutual legal assistance (MLA) process and the legal defences raised by the account holder – who admitted to the corrupt dealings and has since fled to the United States.
The case offers important lessons for States either holding or seeking to recover assets linked to historical acts of corruption.
This is the fourth issue of The Academy’s Bulletin. It has been established to transmit the work of Academy Fellows, draw attention to matters of importance to the legal community and provide high-level analysis of cutting-edge issues in global financial crime investigations and litigation. The Basel Institute on Governance acts as Secretariat to the Academy.
Working Paper 54: Targeting illicit wealth through non-conviction based forfeiture: Identifying human rights and other standards for Latin America
This Working Paper explores the wide variety of non-conviction based (NCB) forfeiture laws in Latin America, with a special focus on the region’s predominant model, Extinción de dominio.
It argues that NCB forfeiture legislation, which allows for the recovery of stolen assets outside of criminal proceedings, can contribute significantly to a state’s criminal policy response to rampant economic and organised crime.
The paper emphasises the importance of critically reviewing and harmonising domestic practices of NCB forfeiture around emerging standards, so that they can reach their large potential in asset recovery. Ensuring their alignment with international human rights and other recognised norms and procedural rules ultimately builds trust, lends legitimacy and fosters judicial cooperation in international NCB forfeiture cases.
About this report
The paper is based on experience gained through the Basel Institute’s International Centre for Asset Recovery (ICAR), which since 2006 has supported partner countries in investigating, prosecuting and recovering assets arising from grand corruption and other crimes.
This paper is published as part of the Basel Institute on Governance Working Paper series, ISSN: 2624-9650. You may share or republish the Working Paper under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0).
Suggested citation: Solórzano, Oscar. 2024. ‘Targeting illicit wealth through non-conviction based forfeiture: Identifying human rights and other standards for Latin America.’ Working Paper 54, Basel Institute on Governance. Available at: baselgovernance.org/publications/wp-54.
La extinción del dominio de bienes instrumentalizados
This publication (in Spanish) focuses on the use of non-conviction based forfeiture legislation in Peru (Extinción de Dominio) to recover instrumentalities of crime. It is a collaborative effort of asset recovery experts of the Basel Institute on Governance under the Programa GFP Subnacional or Subnational Public Finance Management Strengthening Programme in Peru, funded by the Swiss SECO Cooperation.
Introducción
El Programa de Fortalecimiento de la Gestión de Finanzas Públicas a nivel Subnacional en el Perú (2024-2028) busca fortalecer las capacidades de los funcionarios encargados del cumplimiento de la ley, especialmente aquellos que participan en los procesos de recuperación de activos en los niveles central y subnacional.
En los últimos años, la recuperación de activos ha ocupado un importante lugar en la política criminal peruana, especialmente mediante la dación del Decreto Legislativo 1373 - Decreto Legislativo sobre Extinción de Dominio, que incorpora al ordenamiento jurídico peruano un poderoso instrumento para contrarrestar el patrimonio criminal. La consolidación de esta herramienta precisa de conocimientos especializados en la materia, así como la correcta interpretación de las categorías y presupuestos de la extinción de dominio, en armonía con los principios del Estado Constitucional de Derecho que la alberga.
Con miras a la consecución de este objetivo, el Programa GFP Subnacional reconoce el importante rol de la doctrina jurídica como fuente mediata para aliviar los cuestionamientos que surgen en la aplicación de las leyes, y para orientar el conocimiento hacia la correcta adopción de decisiones. Por ello, esta publicación académica es un producto de conocimiento creado con la finalidad de servir como insumo teórico y práctico en la aplicación de la extinción de dominio.
En su primer número, con el fin de coadyuvar en el proceso de especialización de los operadores de justicia, esta publicación aborda diversas cuestiones jurídicas acerca de la recuperación, a través de la extinción de dominio, de los instrumentos empleados en la comisión de actividades ilícitas, dada su disposición para la lesión de bienes jurídicos protegidos por nuestro ordenamiento.