[{"data":1,"prerenderedAt":293},["ShallowReactive",2],{"news-luxemburg-and-switzerland-will-return-usd-17-million-to-peru-7":3,"news-luxemburg-and-switzerland-will-return-usd-17-million-to-peru-7-similar":40,"i-heroicons:arrow-left-20-solid":288},[4],{"id":5,"status":6,"date_created":7,"date_updated":8,"title":9,"type":10,"body":11,"date":12,"topic":13,"slug":14,"activity":15,"nid":16,"topics":17,"activities":18,"programme":19,"area":19,"websites":20,"language":19,"image":22,"translation_of":19,"countries":34,"tags":35,"authors":36,"images":37,"translations":38,"content":39},10040,"published","2022-05-26T22:58:32.000Z","2025-08-31T23:15:27.000Z","Luxemburg and Switzerland will return USD 17 million to Peru","","The Basel Institute on Governance welcomes the recent decisions by courts in Luxembourg and Switzerland to return almost USD 17 million to Peru in cases related to the regime of former Peruvian President Fujimori. We congratulate the involved authorities in Peru, Luxemburg and Switzerland for the successful conclusion of these 15-year old cases. We are honoured to have been able to support this successful outcome.\n\nThe assets that are being returned now have been frozen in the two jurisdictions since 2002 based on a Swiss criminal procedure for money laundering against individuals close to former Peruvian President Fujimori. In this context, in 2002, USD 93 million have already been returned to Peru from Switzerland, while five accounts in Switzerland and two accounts in Luxemburg remained frozen since. In order to return these remaining assets, a final confiscation order from Peru was required.\n\nThese proceedings were taken up again under the leadership of current Attorney General of Peru, Dr Pablo Sanchez Velarde, and resulted in the final confiscation of two bank accounts in Switzerland and two bank accounts in Luxemburg between 2015 and 2016.\n\nThese decisions are important not only from the perspective of recovering these long lost assets, but equally because they create important legal precedent regarding a new and innovative legislation in Peru, which allows non-conviction based asset forfeiture.\n\nMoreover, this is the first time that a Peruvian confiscation order in a corruption case is being executed in a foreign jurisdiction. Indeed the return of stolen assets based on a confiscation order from the country where the assets had originally been stolen from, rather than based a criminal proceeding in the country where the assets were found, is still rare. Peru is writing history with these cases.\n\nFinally, the decisions are important because they bring new insight into legal practice advancing the fight against corruption and the recovery of stolen assets.\n\nFor further information, contact [info@baselgovernance.org](mailto:info@baselgovernance.org).","2017-03-15",[10],"luxemburg-and-switzerland-will-return-usd-17-million-to-peru-7",[10],7,[],[],null,[21],"Main page",{"id":23,"storage":24,"filename_disk":25,"filename_download":26,"title":9,"type":27,"created_on":28,"modified_on":29,"charset":19,"filesize":30,"width":31,"height":32,"duration":19,"embed":19,"description":19,"location":19,"tags":19,"metadata":33,"focal_point_x":19,"focal_point_y":19,"tus_id":19,"tus_data":19,"uploaded_on":29},"f9b83c4f-65b7-4af1-885a-d6532f7c561a","local","f9b83c4f-65b7-4af1-885a-d6532f7c561a.webp","peru_pr_20170314.webp","image\u002Fwebp","2025-05-12T21:24:44.000Z","2026-05-06T07:34:51.000Z",151882,1600,1068,{},[],[],[],[],[],[],[41,75,99,129,154,178,207,230,257],{"id":42,"body":43,"status":6,"type":44,"date":45,"slug":46,"title":47,"image":48,"countries":49,"topic":50,"activity":52,"tags":55,"nid":60,"topics":61,"activities":63,"authors":64,"images":66,"websites":67,"area":19,"programme":19,"language":19,"translations":68,"translation_of":19,"user_created":69,"date_created":70,"user_updated":71,"date_updated":72,"content":73,"link":74},9786,"The following briefing notes are taken from the concept note for a side event at the Conference of States Parties (COSP) in Abu Dhabi on 20 December 2019.\n\nThe side event focuses on [\"Living up to the spirit of Articles 43 and 46 UNCAC\"](https:\u002F\u002Fwww.baselgovernance.org\u002Fnews\u002Fcosp-side-event-living-spirit-articles-43-and-46-uncac) and will take place from 9am-10am on Friday, 20 December in room CR1. For the full text, including all references and citations, download the concept note in [English](https:\u002F\u002Fwww.baselgovernance.org\u002Fsites\u002Fdefault\u002Ffiles\u002F2019-12\u002FCOSP%20concept%20note%209%20Dec%202019.pdf) and [Spanish](https:\u002F\u002Fwww.baselgovernance.org\u002Fsites\u002Fdefault\u002Ffiles\u002F2019-12\u002FCOSP%20concept%20note%20ES%209%20Dec%202019.pdf).\n\n### Non-traditional confiscation typologies in asset recovery\n\nCases in which countries that have been the victims of large-scale corruption (“requesting countries”) have been able to use mutual legal assistance (MLA) to enforce confiscation orders in foreign jurisdictions are rare.\n\nThis is particularly true when the requesting country’s confiscation request is based on a non-traditional (non-criminal) typology of confiscation. \n\nA common reason for states failing to recover their stolen assets from abroad is that some requested states apply a very strict interpretation of MLA principles. A wide range of legal, political and practical hurdles are often put in the way of international enforcement of domestic confiscation orders.\n\nFor instance, numerous countries apply overly narrow interpretations of dual criminality or refuse to provide assistance for non-conviction based confiscation (NCB confiscation) investigations, thereby making asset recovery virtually impossible in all too many cases.\n\nThis happens despite the fact that Article 46 of the Convention requires that _“State Parties shall afford one another the widest measure of mutual legal assistance in investigations, prosecutions and judicial proceedings”_. There is a need to learn from positive examples how we can fully live up to the spirit of Article 46 UNCAC while complying with domestic legal regimes.\n\n### Successful case studies\n\nOne such positive experience is the [tens of millions of dollars](https:\u002F\u002Fwww.baselgovernance.org\u002Fluxemburg-and-switzerland-will-return-usd-17-million-peru) that have been recovered by Peru from Switzerland and Luxembourg over recent years, mostly by means of non-traditional typologies of confiscation. The recoveries took place in several inter-connected cases and generated a wealth of experience in requesting and requested States.\n\nIt was clearly evidenced that asset recovery can only truly be achieved when authorities show a strong commitment towards building a foundation of trust, and additionally, when they coordinate efforts and apply their domestic legal frameworks in a way that favours asset recovery. \n\n### A shared responsibility\n\nAfter all, the prosecution of financial crimes – and the recovery of the proceeds stemming from those crimes – are a shared responsibility of requesting and requested States under UNCAC. It is therefore crucial to find collective solutions to tackle common hurdles in this field. \n\nWe believe that UNCAC, as a living legal instrument, is the entry point to this complex but necessary discussion. We also believe that solutions to some of these issues are to be found in the domestic legislations of the States Parties that have incorporated the principles of the Convention.  \n\n### COSP side event\n\nTo deepen the dialogue and disseminate the lessons that were learned, a side event at the [Conference of States Parties 2019 in Abu Dhabi](https:\u002F\u002Fwww.baselgovernance.org\u002Fnews\u002Fcosp-side-event-living-spirit-articles-43-and-46-uncac) will bring together panellists who have worked on asset recovery cases in different parts of the world to discuss the main aspects of past legal strategies that have proven successful in practice.\n\nIt will also showcase a recent piece of legislation introducing a non-conviction based confiscation typology in Peru, which is [currently being used in asset recovery cases](https:\u002F\u002Fwww.baselgovernance.org\u002Fblog\u002Flandmark-asset-recovery-case-puts-peruvian-non-conviction-based-confiscation-legislation-test) between Peru, Switzerland and Luxembourg.\n\n### Notes on non-conviction based (NCB) confiscation\n\nNCB confiscation laws have proven to be an effective means of combating crime in many jurisdictions around the globe. However, when a state’s domestic legal framework does not accept NCB confiscation as a valid basis to recover illicit assets, they will often refuse to provide MLA.\n\nThe non-acceptance of NCB confiscation is usually founded in the argument that NCB confiscation violates due process and the rule of law. In other cases, countries have refused to provide MLA because the foreign confiscation mechanisms were perceived as being “different” from their domestic one. \n\nConversely, the European Court of Human Rights has repeatedly confirmed the compliance of NCB confiscation models with the highest standards of human rights law, even [stating that:](https:\u002F\u002Fhudoc.echr.coe.int\u002Feng#{%22itemid%22:[%22001-154398%22]})\n\n_“\\[C\\]ommon European and even universal legal standards can be said to exist which encourage the confiscation of property linked to serious criminal offences such as corruption, money laundering, drug offences and so on, without the prior existence of a criminal conviction”._\n\nAlthough full discretion has been given to States Parties to decide on the extent to which they are willing to provide MLA, the Convention emphasises that assistance should be given to _“the widest measure”_. The [Legislative Guide to the UNCAC](https:\u002F\u002Fwww.unodc.org\u002Funodc\u002Fen\u002Ftreaties\u002FCAC\u002Flegislative-guide.html) further specifies that _“States parties should review their current mutual legal assistance treaties to ensure that these sources of legal authority are broad enough to cover each form of cooperation”_ in asset recovery.\n\nThe picture in EU countries is rather discouraging. The criminalisation of money laundering has not been a sufficiently effective measure to combat organised crime and to obtain criminal convictions as a basis to recover illicit assets through criminal confiscation.\n\nAs the European Commission [stated in 2012](https:\u002F\u002Feur-lex.europa.eu\u002Flegal-content\u002FEN\u002FTXT\u002FHTML\u002F?uri=CELEX:52012PC0085&from=EN): _“Confiscation of criminal assets remains underdeveloped and underutilized”._ They also stated that _“there is significant underutilization of asset confiscation laws throughout the EU”_.\n\nHowever, the last word on NCB confiscation at the EU level has not been spoken yet. In 2013, a [clearer mandate to EU member states to legislate on NCB confiscation](https:\u002F\u002Feur-lex.europa.eu\u002Flegal-content\u002FEN\u002FTXT\u002F?uri=CELEX%3A52013IP0444) reads as follows: _“\\[take the opportunity to introduce\\] further common rules on the confiscation of property deriving from activities of a criminal nature, also in the absence of a conviction of a specific person \\[…\\]”._ \n\nFurthermore in 2014, the [EU Directive 2014\u002F42\u002FEU](https:\u002F\u002Feur-lex.europa.eu\u002Flegal-content\u002FEN\u002FTXT\u002F?uri=CELEX%3A32014L0042) of the European Parliament and of the Council on the freezing and confiscation of the instruments and proceeds of crime in the European Union, specifically targets the need to adopt some forms of NCB confiscation making it possible for member states to confiscate assets independently from a criminal conviction.\n\nIn light of this, the discussion at the side event will focus on the following three main areas:\n\n*   What are the requirements\u002Fstandards for a foreign NCB confiscation order to be executable in the requested state?\n*   How do those countries that provide assistance for NCB confiscation interpret the fundamental due process concepts affected therein?\n*   What are the limitations on asset recovery through NCB confiscation related to the due process rights of the asset holder?","Blog","2019-12-07","international-cooperation-in-asset-recovery-and-non-conviction-based-confiscation-a-briefing-1032","International cooperation in asset recovery and non-conviction based confiscation - a briefing","https:\u002F\u002Fjam.baselgovernance.org\u002Fapi\u002Fassets\u002F19632f5e-2354-462a-8079-30ac83a421cf?width=1000&height=650&format=webp&quality=80",[],[51],"Asset Recovery",[53,54],"Insights","Presentations",[56],{"tags_id":57},{"id":58,"name":59},1379,"Non-conviction based forfeiture",1032,[62],"Asset Recovery and Enforcement",[53,54],[65],1251,[],[21],[],"03bebfd8-0b40-4a2a-820d-b9d9c13b9de6","2022-05-26T22:55:40.000Z","3d9ff205-1640-4f34-b5b6-86977f51bbd6","2026-05-29T22:21:55.000Z",[],"\u002Fresources\u002Fnews\u002Finternational-cooperation-in-asset-recovery-and-non-conviction-based-confiscation-a-briefing-1032",{"id":76,"body":77,"status":6,"type":10,"date":12,"slug":78,"title":79,"image":80,"countries":81,"topic":84,"activity":85,"tags":87,"nid":88,"topics":89,"activities":90,"authors":91,"images":92,"websites":93,"area":19,"programme":19,"language":19,"translations":94,"translation_of":19,"user_created":69,"date_created":95,"user_updated":71,"date_updated":96,"content":97,"link":98},10038,"The Basel Institute on Governance welcomes the recent decisions by courts in Luxembourg and Switzerland to return almost USD 17 million to Peru in cases related to the regime of former Peruvian President Fujimori. We congratulate the involved authorities in Peru, Luxembourg and Switzerland for the successful conclusion of these 15-year old cases. We are honoured to have been able to support this successful outcome.\n\nThe assets that are being returned now have been frozen in the two jurisdictions since 2002 based on a Swiss criminal procedure for money laundering against individuals close to former Peruvian President Fujimori. In this context, in 2002, USD 93 million have already been returned to Peru from Switzerland, while five accounts in Switzerland and two accounts in Luxembourg remained frozen since. In order to return these remaining assets, a final confiscation order from Peru was required.\n\nThese proceedings were taken up again under the leadership of current Attorney General of Peru, Dr Pablo Sanchez Velarde, and resulted in the final confiscation of two bank accounts in Switzerland and two bank accounts in Luxembourg between 2015 and 2016.\n\nThese decisions are important not only from the perspective of recovering these long lost assets, but equally because they create important legal precedent regarding a new and innovative legislation in Peru, which allows non-conviction based asset forfeiture. Moreover, this is the first time that a Peruvian confiscation order in a corruption case is being executed in a foreign jurisdiction. Indeed the return of stolen assets based on a confiscation order from the country where the assets had originally been stolen from, rather than based a criminal proceeding in the country where the assets were found, is still rare. Peru is writing history with these cases. Finally, the decisions are important because they bring new insight into legal practice advancing the fight against corruption and the recovery of stolen assets.","luxembourg-and-switzerland-will-return-usd-17-million-to-peru-131","Luxembourg and Switzerland will return USD 17 million to Peru","https:\u002F\u002Fjam.baselgovernance.org\u002Fapi\u002Fassets\u002Fa4947599-76cf-48ea-862d-c0bb710592e0?width=1000&height=650&format=webp&quality=80",[82,83],7606,7607,[51],[86],"Media releases",[],131,[62],[86],[],[],[21],[],"2022-05-26T22:58:30.000Z","2026-05-29T22:22:09.000Z",[],"\u002Fresources\u002Fnews\u002Fluxembourg-and-switzerland-will-return-usd-17-million-to-peru-131",{"id":100,"body":101,"status":6,"type":102,"date":103,"slug":104,"title":105,"image":106,"countries":107,"topic":110,"activity":111,"tags":113,"nid":118,"topics":119,"activities":120,"authors":121,"images":122,"websites":123,"area":19,"programme":19,"language":19,"translations":124,"translation_of":19,"user_created":69,"date_created":125,"user_updated":71,"date_updated":126,"content":127,"link":128},9914,"Swiss authorities have executed an extrajudicial agreement signed between Peru and Montesinos' frontman.\n\nPeruvian authorities and Víctor Venero Garrido, the main frontman of former presidential advisor Vladimiro Montesinos, signed an out-of-court settlement to return approximately USD 15 million from Switzerland to Peru. The money comes from corrupt dealings during the 1990s and the case has lasted 17 years. This is the third and largest of the five accounts located in Switzerland whose assets will be returned to Peru.\n\nThis is the first case in which the legal device of extrajudicial settlement has been applied for an asset recovery process in Peru. The agreement was signed in July 2018 and is currently being executed in Switzerland. It is hoped that the successful conclusion of this landmark case will serve as a model for mechanisms that allow fast, efficient resolution of asset recovery processes in cases of transnational corruption. The [International Centre for Asset Recovery](\u002Fnode\u002F25) (ICAR), working through the country office of the Basel Institute on Governance in Peru, is proud to have participated in the process.\n\n### Related news\n\n*   [Peruvian judiciary confiscates Luxembourg account of Montesinos’ arms dealer](https:\u002F\u002Fwww.baselgovernance.org\u002Fperuvian-judiciary-confiscates-luxembourg-account-montesinos-arms-dealer)\n*   [Luxembourg and Switzerland will return USD 17 million to Peru](https:\u002F\u002Fwww.baselgovernance.org\u002Fluxembourg-and-switzerland-will-return-usd-17-million-peru)","News","2018-12-03","switzerland-to-return-usd-15-million-in-stolen-assets-to-peru-in-landmark-extrajudicial-agreement-6","Switzerland to return USD 15 million in stolen assets to Peru in landmark extrajudicial agreement","\u002Fpics\u002Fimg-placeholder.png",[108,109],7514,7515,[51],[112],"International cooperation",[114],{"tags_id":115},{"id":116,"name":117},973,"Corruption",6,[62],[112],[],[],[21],[],"2022-05-26T22:57:24.000Z","2026-05-29T22:22:03.000Z",[],"\u002Fresources\u002Fnews\u002Fswitzerland-to-return-usd-15-million-in-stolen-assets-to-peru-in-landmark-extrajudicial-agreement-6",{"id":130,"body":131,"status":6,"type":102,"date":132,"slug":133,"title":134,"image":135,"countries":136,"topic":140,"activity":141,"tags":142,"nid":143,"topics":144,"activities":145,"authors":146,"images":147,"websites":148,"area":19,"programme":19,"language":19,"translations":149,"translation_of":19,"user_created":69,"date_created":150,"user_updated":71,"date_updated":151,"content":152,"link":153},9638,"We are delighted about the signing of a trilateral agreement on the return of illicitly acquired assets to Peru.\n\nAs explained in the press releases of the Governments of [Switzerland](https:\u002F\u002Fwww.admin.ch\u002Fgov\u002Fen\u002Fstart\u002Fdocumentation\u002Fmedia-releases.msg-id-81674.html), [Luxembourg](https:\u002F\u002Fgouvernement.lu\u002Ffr\u002Factualites\u002Ftoutes_actualites\u002Fcommuniques\u002F2020\u002F12-decembre\u002F17-accord-trilateral.html) and [Peru](https:\u002F\u002Fwww.gob.pe\u002Finstitucion\u002Frree\u002Fnoticias\u002F321099-el-peru-suscribe-importante-acuerdo-con-suiza-y-luxemburgo-para-repatriar-mas-de-26-millones-de-dolares-provenientes-de-la-corrupcion), the repatriation of around USD 16.3 million from Switzerland and around EUR 9.7 million from Luxembourg is the result of good cooperation between all parties over many years. The assets relate to a complex of cases stretching over nearly two decades against individuals close to disgraced former Peruvian President Fujimori.\n\nIn a [speech delivered to the President of Peru](https:\u002F\u002Fbaselgovernance.org\u002Fsites\u002Fdefault\u002Ffiles\u002F2020-12\u002FMarkus-Alexander%20Antonietti_speech%20on%20agreement%20on%20asset%20return.pdf) at the occasion of the signing, the Swiss Ambassador to Peru Markus-Alexander Antonietti celebrated the fact that the returned assets will be used to strengthen transparency and innovation in Peru's judicial institutions. \"This work will generate – I am convinced of this - actions and not only words,\" he said. Mentioning the support of the Basel Institute and Oscar Solórzano, who leads our Latin America office and the work of our International Centre for Asset Recovery in the region, he concluded that:\n\n> ...the signing not only symbolises the excellent relationship of collaboration and respect between Switzerland and Peru, but also our solid path forward in the fight against corruption and impunity.\n\nBasel Institute Managing Director, Gretta Fenner, says:\n\n> The tripartite nature of this agreement symbolises what has been at the core of our work to help countries recover stolen assets: getting countries to work together.\n> \n> The collaboration we have had the privilege of supporting, between Peru, Luxembourg and Switzerland, has been marked by a genuine willingness by all parties to find legally innovative ways to bridge different legal systems, legal traditions and domestic political realities. I congratulate and thank all partners for their foresightedness in breaking new grounds for international cooperation in asset recovery.","2020-12-17","it-takes-three-to-tango-switzerland-luxembourg-and-peru-sign-agreement-to-return-usd-26-million-in-stolen-assets-1952","It takes three to tango: Switzerland, Luxembourg and Peru sign agreement to return USD 26 million in stolen assets","https:\u002F\u002Fjam.baselgovernance.org\u002Fapi\u002Fassets\u002F71ae4daf-8256-408e-b3ba-1a716eac75c8?width=1000&height=650&format=webp&quality=80",[137,138,139],7358,7359,7360,[51],[112,86],[],1952,[62],[112,86],[],[],[21],[],"2022-05-26T22:53:38.000Z","2026-05-29T22:21:47.000Z",[],"\u002Fresources\u002Fnews\u002Fit-takes-three-to-tango-switzerland-luxembourg-and-peru-sign-agreement-to-return-usd-26-million-in-stolen-assets-1952",{"id":155,"body":156,"status":6,"type":102,"date":157,"slug":158,"title":159,"image":160,"countries":161,"topic":164,"activity":165,"tags":166,"nid":167,"topics":168,"activities":169,"authors":170,"images":171,"websites":172,"area":19,"programme":19,"language":19,"translations":173,"translation_of":19,"user_created":69,"date_created":174,"user_updated":71,"date_updated":175,"content":176,"link":177},10363,"It has taken nearly 20 years, but a decision by the Swiss Federal Supreme Court has cleared the way for the return of around USD 8.5 million in corruptly obtained assets to Peru. The money to be returned is part of a complex of cases linked to Vladimiro Montesinos, Head of Intelligence under former President Alberto Fujimori.\n\nIt is a [highly symbolic case](https:\u002F\u002Fbaselgovernance.org\u002Fnews\u002Fperu-recovers-usd-85-million-through-non-conviction-based-confiscation) for both Switzerland and Peru and sets an important precedent for the use of [non-conviction based forfeiture laws](https:\u002F\u002Fbaselgovernance.org\u002Fblog\u002Frecovering-criminal-assets-without-criminal-conviction-lessons-10-countries) to recover illicit assets. Such laws enable the confiscation of these assets without a criminal conviction of the defendant.\n\nThe case shows two things:\n\n*   First, that non-conviction based forfeiture is an innovative and promising tool in the fight against corruption. It makes it possible to get at the “untouchables”, or at least the money they have stolen, even when the criminal justice system fails to convict a person for whatever reason. Peru’s successful application of this legal tool has already inspired other asset recovery practitioners far beyond Peru or even Latin America.\n\n*   Second, that it shows the merits of states (in this case Switzerland) being open to novel asset recovery mechanisms so as to be able to offer help in the context of international judicial cooperation. Other large financial centres can take note. As we regularly promote in policy forums and among our partner governments, all states should live up to their international commitments to provide the widest possible measure of international cooperation in asset recovery.\n\nThe Basel Institute has been supporting the Peruvian authorities since 2012 in emblematic asset recovery cases through capacity building and hands-on mentoring. We congratulate the authorities in both Peru and Switzerland, and thank the core donors of our International Centre for Asset Recovery (ICAR) and the Swiss State Secretariat for Economic Affairs for supporting our technical assistance in the country.\n\n### Multiple appeals from a man who fled prosecution\n\nDespite the relatively small amount of money – at least compared to the amount stolen through corruption – it was a challenging case, says Oscar Solórzano, who leads the Basel Institute’s asset recovery efforts in Latin America.\n\nPeruvian prosecutors working with Solórzano were able to prove in court that the USD 8.5 million derived from corrupt contracts for the purchase of overvalued fighter jets from Belarus during Peru’s Fujimori government. The beneficial owner of the bank account was German-Israeli businessman Moshe Rothschild Chassin, an accomplice of Montesinos. He fled to Israel to evade prosecution and, despite being subject to an Interpol red notice, remains free.\n\nIn 2021, after Peru’s Courts issued the confiscation order, the judicial authorities sent a mutual legal assistance request to the Swiss authorities to execute the confiscation order and return the money.\n\nOscar Solórzano explained that Moshe challenged the confiscation order at all three appeals stages in Switzerland: in the Attorney General’s Office in Zurich, in the [Federal Criminal Court in Bellinzona](http:\u002F\u002Fbstger.weblaw.ch\u002Ffiles\u002F20230404_RR_2021_202.pdf) and in the [Federal Supreme Court in Lausanne](https:\u002F\u002Fwww.bger.ch\u002Fext\u002Feurospider\u002Flive\u002Fde\u002Fphp\u002Faza\u002Fhttp\u002Findex.php?lang=de&type=highlight_simple_query&page=2&from_date=25.04.2023&to_date=25.04.2023&sort=relevance&insertion_date=&top_subcollection_aza=all&query_words=&rank=15&azaclir=aza&highlight_docid=aza%3A%2F%2F25-04-2023-1C_173-2023&number_of_ranks=17).\n\n> The Swiss judges agreed first with their Peruvian counterparts that, through a detailed financial investigation, Peru had successfully proven that the bank account in Zurich constituted proceeds of crime. Second, they [rejected the appeals](https:\u002F\u002Fbstger.weblaw.ch\u002Ffiles\u002F20230404_RR_2021_202.pdf), noting that the non-conviction based forfeiture procedure in Peru had been conducted in accordance with all applicable standards and legal rights.\n\n### Untapped potential of non-conviction based forfeiture laws\n\nThe Peruvian confiscation order was based on its _Extinción de dominio_ law, a form of non-conviction based forfeiture law that is quite prevalent across Latin America. Sometimes known as civil forfeiture, this type of law enables the confiscation of assets linked to corruption or other crimes even if the perpetrator cannot be prosecuted.\n\nThis was the case for Moshe. As an accomplice rather than a public servant, Moshe can never be prosecuted on criminal charges of collusion and bribery. He will also not be extradited from Israel. As a result, Peruvian Judge Eduardo Torres said:\n\n> The autonomy of the Extinción de dominio procedure from the criminal process was key to its use in this case.\n\nThe standard of proof in non-conviction based forfeiture laws is civil (balance of probabilities) rather than criminal (beyond reasonable doubt). Various judicial mechanisms are in place to ensure that the person’s rights are fully respected throughout the process.\n\nIts _Extinción de dominio_ law is one reason why Peru has become a positive role model in the region in terms of asset recovery. At a recent [convention of judges](https:\u002F\u002Fbaselgovernance.org\u002Fnews\u002Fjudges-convention-shows-why-peru-leader-recovering-proceeds-corruption-through-non-conviction) organised by the Basel Institute’s team in Lima, the Head of Peru’s Judiciary Javier Arévalo Vela highlighted that the law had already enabled the recovery of around USD 64 million in illicit assets, with many more cases in the pipeline.\n\nJudge Torres added:\n\n> The case is also important for the Peruvian justice system as a whole. The fact that money misappropriated from the Peruvian treasury will be returned shows we are in compliance with international treaties. And we are sending a message to the corrupt: if you misuse the public administration and steal Peruvian money, ultimately you will not profit from it.\n\n### International cooperation\n\nAnother boost to Peru’s asset recovery efforts has been improved international cooperation with financial centres such as Switzerland.\n\nInternational cooperation is a constant challenge for countries seeking to recover corrupt assets, as Specialised Prosecutor Hamilton Castro explained in this [interview](https:\u002F\u002Fbaselgovernance.org\u002Fblog\u002Finterview-applying-perus-non-conviction-based-forfeiture-law-international-cases), and is a core element of ICAR’s technical assistance in Peru and other partner countries. In too many cases, states harbouring illicit assets will not cooperate on cases where they do not have an equivalent asset recovery mechanism.\n\nThough Switzerland does not have a comparable (autonomous) non-conviction based forfeiture law, it has shown willingness to evaluate Peru’s law according to its own legal principles and offer assistance where possible.\n\nJudge Torres said:\n\n> International cooperation was a decisive factor in both achieving the confiscation order and executing it. The Swiss decision paves the way for other countries to carry out similar procedures, following Peru's example and maintaining the rights of the affected party throughout the process.\n\n### What’s next?\n\nThe funds will be transferred to Peru and used in a manner to be agreed upon between the two concerned jurisdictions. Over USD 25 million confiscated by Peru previously in this complex of cases were returned under a [trilateral agreement](https:\u002F\u002Fbaselgovernance.org\u002Fnews\u002Fit-takes-three-tango-switzerland-luxembourg-and-peru-sign-agreement-return-usd-26-million) in 2020 between Switzerland, Luxembourg and Peru that foresees the use of funds to strengthen the country’s law enforcement and judicial systems.\n\nAsked what we can take forward from this and related cases, Oscar Solórzano says:\n\n> Not only have Peru’s judicial authorities gained knowledge and confidence in applying this law and having confiscation orders executed internationally. We also see prosecutors and judges in other Latin American countries empowered by the positive example set by Switzerland and Peru.\n> \n> At the Basel Institute, we promote asset recovery mechanisms globally that are effective, but also proportionate and respectful of human rights. We believe these are the ingredients to make these laws truly global legal tools in the fight against corruption and other forms of crime.\n\nJudge Torres expressed his hope that:\n\n> ...we will continue to recover large amounts of money in transnational cases, with the collaboration of all entities involved in the recovery process and in particular with the collaboration of the Basel Institute on Governance. For example, Oscar Solórzano's assistance in tracing the money through various transactions to its final destination was key to unlocking the case in the first place.\n\n### Read more\n\n*   Learn more about the work of our [International Centre for Asset Recovery](https:\u002F\u002Fbaselgovernance.org\u002Fasset-recovery) and our [Programa GFP Subnacional](https:\u002F\u002Fbaselgovernance.org\u002Fpublic-finance-peru), which together undertake our asset recovery assistance in Peru. ICAR is funded by core contributions from the Government of Jersey, Principality of Liechtenstein, Norwegian Agency for Development Cooperation (Norad), Swiss Agency for Development and Cooperation (SDC), UK Foreign, Commonwealth & Development Office (FCDO) and UK Home Office. Our Programa GFP Subnacional is funded by the Swiss State Secretariat for Economic Affairs.\n*   See our [asset recovery case study series](https:\u002F\u002Fbaselgovernance.org\u002Fpublications?topic=All&type=3443&country=All&language=All&title=).","2023-05-17","switzerland-to-return-usd-85-million-to-peru-in-precedent-setting-case-of-non-conviction-based-forfeiture-2444","Switzerland to return USD 8.5 million to Peru in precedent-setting case of non-conviction based forfeiture","https:\u002F\u002Fjam.baselgovernance.org\u002Fapi\u002Fassets\u002Fad16b10a-a929-49ba-b3fa-f4ceb7b7d613?width=1000&height=650&format=webp&quality=80",[162,163],7185,7186,[51],[112],[],2444,[62],[112],[],[],[21],[],"2023-05-17T10:01:32.000Z","2026-05-29T22:22:25.000Z",[],"\u002Fresources\u002Fnews\u002Fswitzerland-to-return-usd-85-million-to-peru-in-precedent-setting-case-of-non-conviction-based-forfeiture-2444",{"id":179,"body":180,"status":6,"type":44,"date":181,"slug":182,"title":183,"image":184,"countries":185,"topic":188,"activity":189,"tags":190,"nid":195,"topics":196,"activities":197,"authors":198,"images":200,"websites":201,"area":19,"programme":19,"language":19,"translations":202,"translation_of":19,"user_created":69,"date_created":203,"user_updated":71,"date_updated":204,"content":205,"link":206},9580,"_Claims that Switzerland is “paternalistic” in its approach to returning stolen assets to their rightful countries are simplistic, argues Senior Asset Recovery Specialist Oscar Solórzano in this opinion article for Swiss news and information platform Swissinfo. The article is available on the Swissinfo site in [German](https:\u002F\u002Fwww.swissinfo.ch\u002Fger\u002Fdie-rueckgabe-gestohlener-staatsgelder-ist-ein-heilender-akt\u002F46586786) and [Spanish](https:\u002F\u002Fwww.swissinfo.ch\u002Fspa\u002Fla-restituci%C3%B3n-del-dinero-p%C3%BAblico-robado-es-un-acto-de-sanaci%C3%B3n\u002F46659782)._\n\nSwitzerland is sometimes criticised for having a “paternalistic” approach to international asset restitution, as discussed in a recent [article by Sibilla Bondolfi](https:\u002F\u002Fwww.swissinfo.ch\u002Fspa\u002F-c%C3%B3mo-restituir-el-dinero-robado-para-que-beneficie-a-la-poblaci%C3%B3n-\u002F46378630).\n\nThis criticism relies on a simplistic and misleading story of how “typical” international asset recovery works. It goes like this:\n\n> An unscrupulous politician in a developing country steals money from the public coffers and stashes it in an international financial centre. There are mansions, yachts, bank accounts, luxury cars and other caprices. At some point, the financial centre decides to return what is left.\n\nSeveral emblematic cases, including those of Marcos (Philippines), Abacha (Nigeria) and Fujimori (Peru), display some of these features. But life and the law are more complicated.\n\n### There is no \"normal\" way to return stolen assets\n\nFirst, asset restitution is a fast-evolving field with significant variation over time and geography.\n\nWhile the return of stolen assets is a fundamental principle under the United Nations Convention Against Corruption (UNCAC), it sets only a few ground rules.\n\nFor example, it provides for states to voluntarily conclude agreements, on a case-by-case basis, for the final disposal of confiscated assets. It thus leaves considerably discretion to the concerned states to agree on the terms of the restitution. In this context, asking what a \"normal\" asset restitution process looks like is akin to asking what \"normal\" clothes look like.\n\nUNCAC nevertheless establishes two key criteria that from a legal standpoint have an impact on the asset return processes.\n\n*   Firstly, it differentiates between situations in which the final confiscation order is issued by the judicial system of the victim state and situations in which the recipient state, i.e. the state where the assets were found, waives the need of a final confiscation order to return the illicit assets.\n*   Secondly, it differentiates whether the assets to be returned are the proceeds of embezzlement or other forms of corruption. If the proceeds were embezzled public money, the victim state has an absolute right to restitution. For any other offence, restitution will depend on the capacity of the victim state to unravel the facts of the case, which is often challenging for international corruption and money laundering schemes.\n\n### A collaborative process, not a unilateral return\n\nThe second important feature of asset return is that victim states of corruption can and should be valid and proactive counterparts through cooperation and dialogue.\n\nAsset restitution is not simply about a powerful financial centre giving back money to a victim state. Rather, I see it as a collaborative process in which all states involved must show great maturity in order to achieve a common goal: restorative justice.\n\nHowever, not all victim states have the capacity (yet) to play their part in the restitution process in full. In such situations, legislation in place in Switzerland allows it to return illicit funds in some scenarios without any need for a confiscation order in the victim state.\n\nThis legislation is considered to be highly innovative and a sign of great willingness on the part of Switzerland to recover and return stolen assets.\n\n### From \"victim\" states to proactive partners\n\nThat being said, many victim states have significantly improved their capacity to recover illicit assets in recent years. By applying their own laws and processes, they are now more frequently able to issue final confiscation orders, which they then seek to enforce through international judicial cooperation in order to have the money returned.\n\nThis is the scenario in the international asset recovery cases in which I have been involved between Peru and various financial centres, including Switzerland.\n\nThe ability of victim states such as Peru to investigate, prosecute and execute judgements in complex corruption and money laundering cases is a clear testimony of progress in the country’s judicial system. It is precisely what is needed to turn the \"victim\" into a proactive partner and empowers it to take a stronger role in determining how the returned funds will be used.\n\n### Dialogue is worth the extra time\n\nThis is a very positive development. But of course, a dialogue is always more complex than a “monologue” and usually takes more time too. The increased complexity – often resulting in the process needing more time – is however easily offset by the great potential inherent in this form of dialogue for advancing asset recovery and cooperation. It enables the states to understand each others' priorities, resolve legal loopholes and reconcile their interests.\n\nThis was very much understood and wanted by Peru in the restitution process described in the above-mentioned article. In fact, Peru early on took the first step to request a dialogue with Switzerland to discuss modalities for the return of the stolen assets when it became clear that confiscation was possible.\n\nThis form of dialogue is also key to mitigate the political risks that restitution may entail. After all, the ups and downs of politics are common in many victim states, and in recent times Peru is no exception.\n\n### Asset return in practice: a tripartite agreement\n\nThe third aspect is how this looks in practice. The recent [tripartite agreement on asset restitution between Peru, Switzerland and Luxembourg](https:\u002F\u002Fbaselgovernance.org\u002Fnews\u002Fit-takes-three-tango-switzerland-luxembourg-and-peru-sign-agreement-return-usd-26-million) has drawn attention and, in the above-mentioned article, some unhelpful sneers about corruption in Peru's justice system and how Switzerland is \"planting saplings\" in Peru to clear its guilt.\n\nThis is unfortunate because the tripartite agreement, which covers nearly USD 28 million from a complex of cases relating to Fujimori, is a good illustration of close cooperation between states, in a collaborative spirit, aimed at combining various political interests and achieving the common goal of justice.\n\nThe returned assets are not being spent on saplings but on further strengthening the national asset recovery system and criminal prosecution in Peru.\n\n### A positive precedent for asset restitution\n\nDid Switzerland (or Luxembourg) impose this on Peru and thus is behaving in a neo-colonial way? No, really not.\n\nThe proposal to use the funds for this purpose was made by the Peruvian counterparts, and notably the prosecuting and judicial authorities. They know best where the country is weak and where the money can be put to good use. That is what the returned funds will go towards, used and administered by Peruvian authorities.\n\nIn my opinion, this restitution agreement is a powerful symbol in many ways and should be considered an example for others to follow.\n\nUsing the money to strengthen the victim state’s asset recovery system is an expression of recognition of the considerable efforts and progress already made by Peruvian investigators, prosecutors and judges, who bravely tackle complex cases involving high-level criminals despite challenging conditions and scarce resources.\n\nBy investing the returned money into these institutions, the money further serves to multiply the impact of the return, as we expect the reinforced institutions to continue and scale up their asset recovery efforts.\n\n### The value of asset recovery goes far beyond the money\n\nIt is also a powerful reminder that asset recovery is not only about returning money, but it is about healing historical wounds, restoring credibility to justice institutions and building a stronger future with less corruption.\n\nBecause indeed, USD 28 million compared to the Peruvian GDP is only a tiny sapling in a large forest. Given that, what better than to plant it somewhere it can thrive and be seen to bear fruit.","2021-07-13","opinion-the-return-of-stolen-assets-requires-innovative-thinking-dialogue-and-collaboration-2052","Opinion: The return of stolen assets requires innovative thinking, dialogue and collaboration","https:\u002F\u002Fjam.baselgovernance.org\u002Fapi\u002Fassets\u002F84553495-0cec-4f86-bd32-0c624c961db2?width=1000&height=650&format=webp&quality=80",[186,187],7317,7318,[51],[53],[191],{"tags_id":192},{"id":193,"name":194},843,"Asset recovery",2052,[62],[53],[199],1190,[],[21],[],"2022-05-26T22:52:47.000Z","2026-05-29T22:21:43.000Z",[],"\u002Fresources\u002Fnews\u002Fopinion-the-return-of-stolen-assets-requires-innovative-thinking-dialogue-and-collaboration-2052",{"id":208,"body":209,"status":6,"type":102,"date":210,"slug":211,"title":212,"image":213,"countries":214,"topic":216,"activity":217,"tags":218,"nid":219,"topics":220,"activities":221,"authors":222,"images":223,"websites":19,"area":19,"programme":19,"language":224,"translations":225,"translation_of":19,"user_created":69,"date_created":226,"user_updated":71,"date_updated":227,"content":228,"link":229},10605,"> 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.\n\nWith these words, [Oscar Solórzano](https:\u002F\u002Fbaselgovernance.org\u002Fabout\u002Fpeople\u002Foscar-solorzano), Head of Latin America at the Basel Institute on Governance, captured the often unseen but transformative impact of asset recovery. \n\nHis remark follows a high-level meeting in Peru marking the final phase of a pioneering international agreement.\n\nOn 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](https:\u002F\u002Fbaselgovernance.org\u002Fnews\u002Fit-takes-three-tango-switzerland-luxembourg-and-peru-sign-agreement-return-usd-26-million) on the transfer of confiscated assets. \n\nOpened 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.\n\n### From frozen assets to public benefit\n\nThrough this cooperation, assets derived from corruption cases and previously frozen abroad have been returned to Peru and reinvested in strengthening the justice system. \n\nProjects 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.\n\nThe National Program for Seized Assets ([PRONABI](https:\u002F\u002Fwww.gob.pe\u002Fpronabi)) has overseen the transparent and accountable administration of these funds, ensuring they directly support institutions at the forefront of combating corruption.\n\nHighlighting the broader significance of the initiative, Minister Jiménez Borra stated:\n\n> 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.\n\n### Strong international partnership and Swiss engagement\n\nPeru’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. \n\nThe Basel Institute on Governance, through its [International Centre for Asset Recovery](https:\u002F\u002Fbaselgovernance.org\u002Fasset-recovery) (ICAR), has played a central role in supporting implementation by providing technical advice and accompanying institutions throughout the process. \n\nPaul Garnier, Ambassador of Switzerland to Peru, noted: \n\n> 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. \n\nDuring the technical session, Oscar Solórzano and [Límberg Chero](https:\u002F\u002Fbaselgovernance.org\u002Fabout\u002Fpeople\u002Flimberg-chero), a senior member of the Basel Institute’s [Public Finance Management programme in Peru](https:\u002F\u002Fbaselgovernance.org\u002Fpublic-finance-peru), shared reflections on the implementation, impact and sustainability of the projects.\n\nCelso Alfredo Saavedra Sobrados, Executive Coordinator of PRONABI, emphasise that:\n\n> 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.\n\nHe also highlighted the close and timely technical support provided by the Basel Institute on Governance during the implementation of the project.\n\n### Setting a regional example for asset recovery\n\nThe 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.\n\nIt 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. \n\nThe hope is that this model will inspire further mutually beneficial efforts to return stolen assets and put them to work for the public good.","2026-04-02","where-asset-recovery-really-happens-peru-advances-landmark-restitution-initiative-2949","Where asset recovery really happens: Peru advances landmark restitution initiative","https:\u002F\u002Fjam.baselgovernance.org\u002Fapi\u002Fassets\u002Facf1f9c4-3c0f-46da-a4c6-cb846ceacb26?width=1000&height=650&format=webp&quality=80",[215],7806,[51],[112],[],2949,[62],[112],[],[],"English",[],"2026-04-15T22:45:17.000Z","2026-05-29T22:22:39.000Z",[],"\u002Fresources\u002Fnews\u002Fwhere-asset-recovery-really-happens-peru-advances-landmark-restitution-initiative-2949",{"id":231,"body":232,"status":6,"type":44,"date":233,"slug":234,"title":235,"image":236,"countries":237,"topic":241,"activity":242,"tags":243,"nid":246,"topics":247,"activities":248,"authors":249,"images":251,"websites":252,"area":19,"programme":19,"language":19,"translations":253,"translation_of":19,"user_created":69,"date_created":254,"user_updated":71,"date_updated":151,"content":255,"link":256},9645,"I recently participated in a panel on the [role of non-state actors in the recovery of stolen assets and proceeds of corruption](https:\u002F\u002F19thiacc.pathable.co\u002Fmeetings\u002Fvirtual\u002FceP3vXicKeAfdAJf6) at the 2020 International Anti-Corruption Conference, at which I presented the so-called “Russian arms dealer case”. The case is relatively small in monetary terms – around USD 700,000 plus interest – but hugely significant in terms of asset recovery efforts and international co-operation.\n\nIn this case, the Peruvian State used a non-conviction based confiscation technique to recover a bank account frozen in Switzerland. The account contained illicit commissions paid in the context of the purchase of war planes by the Peruvian government during the armed conflict with Ecuador.\n\nThis case was the first of a series of cases between Peru and Switzerland applying non-conviction based confiscation techniques. It has paved the way for other proceedings, some of which are still pending in the tribunals.\n\nThis case also illustrates one way in which the Basel Institute, through its International Centre for Asset Recovery ([ICAR](\u002Fnode\u002F25)), provides assistance to victim countries in recovering assets stolen through corruption. In addition to this type of technical assistance on specific asset recovery cases, ICAR also delivers capacity building programmes and contributes to states’ efforts to introduce legislative and institutional reforms to facilitate asset recovery.\n\nAll of the facts described below are contained in the relevant and publicly available Swiss and Peruvian jurisprudence.\n\n### Case study: the Russian arms dealer\n\nVladimiro Montesinos Torres was the chief of the Peruvian intelligence service and advisor of former Peruvian President Alberto Fujimori (in office from 1990 to 2000). Montesinos headed a criminal organisation through which he systemically distributed bribes to public officials to accumulate influence over vast areas of government, the media and public life in Peru.\n\nFujimori and Montesinos orchestrated large procurements for the Peruvian state that were tainted with corruption and resulted in massive losses for Peru. Together with their enablers, they stole several US billions of dollars in public assets from Peru.\n\nIn 1998, Montesinos and Fujimori instigated the purchase of military aircraft by the Peruvian state. The vendor was a Russian state-owned company by the name of Rosvooruzhenie, whose vice-director was a Russian citizen called Yuri Khozyainov.\n\nMontesinos and his allies received illicit commissions totalling more than USD 16 million in relation to a single procurement contract. These commissions were paid into two Swiss bank accounts at First International Bank of Israel (FIBI) and Bank Leumi in Zurich. This scheme, as well as later acts of money laundering, were detected and subsequently investigated in several jurisdictions, including Peru, Switzerland and Luxembourg.\n\nIt was later revealed that Khozyainov was deeply implicated in Montesinos’ money laundering scheme. Of the USD 16 million in illicit commissions, around USD 708,000  were forwarded to an account held by Khozyainov at the bank Credit Lyonnais.\n\nThe bank reported Khozyainov's account to the Swiss Financial Intelligence Unit (FIU) and it was subsequently frozen as part of a Swiss money laundering investigation. A few years later, Peru also investigated the case, applying non-conviction based confiscation techniques. It requested and exchanged evidence with Switzerland through the formal channels of mutual legal assistance (MLA).\n\nKhozyainov appealed the seizure of the assets in Switzerland, claiming Peru did not grant him a due process and that the freeze violated the Swiss MLA regulations. In February 2014, the Swiss Federal Court rejected Khozyainov’s appeal and upheld the freezing order (Decision RR.2013.164).\n\nIn February 2016, the Peruvian courts ordered the confiscation of Khozyainov's Swiss bank account and, two months later, requested Switzerland to execute the decision and to hand over the assets, including interest.\n\nSwitzerland granted MLA and executed the request in June of that year, but Khozyainov appealed to the Swiss Federal Criminal Court. The court rejected his arguments and ordered the return of the frozen assets to Peru (Decision RR.2016.147).\n\nArguing a further violation of rights of constitutional nature, Khozyainov lodged an appeal at the Swiss Federal Supreme Court, which ultimately ruled that that the Peruvian investigation and trial was fair in all aspects.\n\n### The value of early preparatory meetings\n\nAmong the many lessons learned in this process was the great importance of preparatory meetings between central and executing authorities.\n\nIt is continuously pointed out in international fora that for an asset recovery case to be successful it needs to be closely coordinated between requesting and requested states. We profoundly adhere to this statement.\n\nIn practice this means that substantive work needs to be undertaken as a basis for such discussion and coordination. The case examined here has provided Peru and Switzerland with the opportunity to discuss in detail the mechanisms Switzerland will use to recognise and execute the Peruvian decision based on a typology of confiscation which is unknown in the Swiss legal framework. On the other hand, these preliminary meetings allowed the Peruvian authorities to understand the conditions in the Swiss domestic legal framework for the execution of foreign confiscation orders.\n\n### Creating precedent-setting jurisprudence\n\nObviously, the above-mentioned exercise requires innovative thinking and a deep knowledge of both legal systems as well as the languages and legal traditions. ICAR’s specialists, in close coordination with prosecutors of the requesting and requested state, supported these efforts.\n\nThe end conclusion was that both legal systems had equivalent provisions for dealing with similar underlying facts. This enabled the Peruvian decision to be admitted in Switzerland for execution.\n\n### Financial investigations at the heart of asset recovery\n\nIndependently of the underlying legal action that led to the recovery of the illicit assets, Switzerland’s capacity to cooperate in such asset recovery scenarios depends on two main preconditions pertaining to the foreign procedure. First, the respect of due process requirements in the victim state. Second, that the asset is of criminal origin, i.e. is linked to a crime. This is necessary in order to execute the foreign decision through MLA in criminal matters.\n\nIt is no simple matter to demonstrate in court that assets – especially when they undergo several transformations in a money laundering scheme – are the proceeds of a crime.\n\nIn the course of our work in Latin America, ICAR’s financial investigators and their Peruvian counterparts had been able to establish with a high degree of certainty that the assets in the Swiss accounts originated in the Peruvian treasury. To do this, they needed to analyse a large amount of financial data received by Peru through MLA channels. The financial reports were able to reconstitute the paper trail and were used by the Peruvian prosecutors to satisfactorily support their claim in the domestic courts.\n\nAt the same time, the financial investigation showed without a shadow of doubt that the assets result from the corruption offence perpetrated by Montesinos and his associates. This in turn provided the legal argument that the Swiss authorities needed to cooperate in criminal matters, even if the underlying foreign confiscation order did not result from ordinary criminal proceedings but from a non-conviction based confiscation action.","2020-12-10","the-russian-arms-dealer-case-how-peru-recovered-stolen-assets-from-a-swiss-bank-account-through-non-conviction-based-confiscation-1940","The Russian arms dealer case: how Peru recovered stolen assets from a Swiss bank account through non-conviction based confiscation","https:\u002F\u002Fjam.baselgovernance.org\u002Fapi\u002Fassets\u002F59dede63-236f-497f-9a9a-62ebd06e6d91?width=1000&height=650&format=webp&quality=80",[238,239,240],7365,7366,7367,[51],[53],[244],{"tags_id":245},{"id":58,"name":59},1940,[62],[53],[250],1201,[],[21],[],"2022-05-26T22:53:43.000Z",[],"\u002Fresources\u002Fnews\u002Fthe-russian-arms-dealer-case-how-peru-recovered-stolen-assets-from-a-swiss-bank-account-through-non-conviction-based-confiscation-1940",{"id":258,"body":259,"status":6,"type":44,"date":260,"slug":261,"title":262,"image":263,"countries":264,"topic":271,"activity":272,"tags":273,"nid":276,"topics":277,"activities":278,"authors":279,"images":281,"websites":282,"area":19,"programme":19,"language":19,"translations":283,"translation_of":19,"user_created":69,"date_created":284,"user_updated":71,"date_updated":285,"content":286,"link":287},9514,"Within days of Russia’s illegal invasion of Ukraine, Western governments imposed unprecedented economic sanctions against the Russian state and certain Russian oligarchs. They are now working to identify and freeze assets linked to sanctioned individuals and entities – a magnificent challenge in itself.\n\nExpectations are already skyrocketing as regards the potential of confiscating these assets, and politicians make strong statements about how they should ultimately be used. This has put a political spotlight on a debate that has long been on the agenda of asset recovery discussions: how should recovered assets be utilised?\n\nThis is not only a legal but at least as much a political issue, because international treaties are not specific in this regard. The public are often cynical when faced with claims of recovered assets which are allocated to the general budget with little or no oversight. Sometimes, the speculation is that the same recovered assets have been diverted for the benefit of individuals rather than the collective good.\n\nRecognising this risk and the public expectation, countries that return or receive recovered assets have tried various schemes over the years to safeguard and maximise their use. None of these discussions has been plain sailing, also because each case of asset repatriation is very different – legally, technically and politically.\n\nIn countries that we support through our [International Centre for Asset Recovery](https:\u002F\u002Fbaselgovernance.org\u002Fasset-recovery), there have been some really interesting and innovative initiatives to utilise assets:\n\n### For pandemic-struck hospitals\n\nIn Kenya, as pandemic-related pressure mounted on the country’s health system, the Office of the Director of Public Prosecutions and the Ethics and Anti-Corruption Commission [handed over 20 billion Kenyan shillings](https:\u002F\u002Fbaselgovernance.org\u002Fnews\u002Fkenya-usd-271-million-stolen-assets-recovered-and-fast-upward-trend) (approximately USD 18 million at the time) to the Ministry of Health to equip the countries’ hospitals with equipment. Formally handed over at a ceremony to which the media were invited, the money came directly from confiscated proceeds of corruption.\n\nSo in this case, the recovered assets were not only put to good use in the fight against Covid-19. The action also helped to demonstrate how corruption hurts citizens, and in turn how recovering stolen assets can benefit citizens – and to right a wrong of which Kenyan citizens have been the victims.\n\n### For student bursaries\n\nThe Kenyan example triggered a great deal of interest in the region in how recovered proceeds of corruption could be tangibly and visibly utilised. Next, in February 2022, the Zambia Anti-Corruption Commission publicly [handed over](https:\u002F\u002Fwww.lusakatimes.com\u002F2022\u002F02\u002F23\u002Fanti-corruption-commission-officially-hands-over-recovered-proceeds-from-crime\u002F) USD 57,000 USD and 65.3 million kwacha (approximately USD 3.6 million) of recovered funds to the Ministry of Education. Both the Minister and the President committed to utilising these funds for bursaries to enable under-privileged students to complete university education. Here, too, citizens who are the primary victims of corruption are the ones to feel the direct benefit of asset recovery.\n\n### To strengthen criminal justice institutions\n\nInternationally recovered proceeds of corruption have been used in similarly positive ways. An interesting example comes from Peru, which in 2020 signed a [tripartite agreement](https:\u002F\u002Fbaselgovernance.org\u002Fnews\u002Fit-takes-three-tango-switzerland-luxembourg-and-peru-sign-agreement-return-usd-26-million) with Switzerland and Luxembourg in relation to around USD 26 million in repatriated assets that had been stolen through corruption under the regime of former President Fujimori.\n\nUnder this agreement, these assets are now being used to strengthen the country’s criminal justice and asset recovery institutions. Peru’s proposal to use the funds in this way goes straight to the core of the problem – corruption – and will help [multiply the impact](https:\u002F\u002Fbaselgovernance.org\u002Fblog\u002Fopinion-return-stolen-assets-requires-innovative-thinking-dialogue-and-collaboration) of the returned funds. The agreement also contains provisions that will ensure transparency and accountability in the use of the funds.\n\n### For intensive care units and Covid-19 relief\n\nAnother interesting example is the asset-sharing agreement signed in March 2022 between Kenya and the Bailiwick of Jersey to repatriate GBP 3 million to Kenya. This was the culmination of a multi-year investigation and prosecution which led to the confiscation of funds from a Jersey-registered company, Windward Trading.\n\nIt was the Windward Trading case that had originally triggered the development of the Framework for the Recovery of Funds from Crime and Corruption in Kenya ([FRACCK](https:\u002F\u002Fbaselgovernance.org\u002Fnews\u002Ffracck-agreement-kenya-illustrates-partnership-essential-when-disposal-confiscated-assets)), which was signed by the Governments of Kenya, Jersey, Switzerland and the UK in 2018. The purpose of the agreement is to streamline the repatriation of funds to Kenya and to ensure that they will be utilised in line with national development priorities. The agreement also provides for the monitoring and evaluation of the use of returned funds.\n\nIn this first utilisation, under the Kenya–Jersey agreement, the recovered assets are to be used to acquire medical equipment for intensive care units and to assist families adversely affected by the pandemic. Similar to the Covid-19 use of domestically repatriated funds, citizens will be able to experience the direct impact of successful anti-corruption enforcement.\n\n### Considering the causes, consequences and victims of corruption\n\nThere are other examples where recovered assets have been used in innovative and interesting ways, and more in the pipeline. What these examples all have in common is that careful consideration was given to either the root cause of corruption (Peru) or to the harm caused by corruption and their victims (Kenya, Zambia).\n\nThe international cases (Peru and Kenya) have also benefited greatly for a collaborative attitude of both requesting and requested states.\n\nThe recovery of stolen assets is of course about the money. But just as much it is about what we sometimes refer to as the [“soft assets”.](https:\u002F\u002Fbaselgovernance.org\u002Fpublications\u002Fworking-paper-29-recovering-assets-support-sdgs-soft-hard-assets-development) Namely, that citizens benefit from the enforcement action and the original negative impact of corruption is at least somewhat countered. In time, the rule of law, trust in government and effective public services are restored.\n\nThe above examples provide some food for thought for countries grappling with the question of how best to employ recovered proceeds of corruption and other crimes. The answers they come up with may be different, but what’s important is that all sides – including citizens – get the clear sense that something good came out of the bad.","2022-05-12","smarter-use-of-confiscated-assets-would-multiply-their-impact-2217","Smarter use of confiscated assets would multiply their impact","https:\u002F\u002Fjam.baselgovernance.org\u002Fapi\u002Fassets\u002F6208a0cc-9ed4-4714-95f3-68eb55809e5b?width=1000&height=650&format=webp&quality=80",[265,266,267,268,269,270],7259,7260,7261,7262,7263,7264,[51],[53],[274],{"tags_id":275},{"id":193,"name":194},2217,[62],[53],[280],1168,[],[21],[],"2022-05-26T22:51:48.000Z","2026-05-29T22:21:38.000Z",[],"\u002Fresources\u002Fnews\u002Fsmarter-use-of-confiscated-assets-would-multiply-their-impact-2217",{"left":289,"top":289,"width":290,"height":290,"rotate":289,"vFlip":291,"hFlip":291,"body":292},0,20,false,"\u003Cpath fill=\"currentColor\" fill-rule=\"evenodd\" d=\"M17 10a.75.75 0 0 1-.75.75H5.612l4.158 3.96a.75.75 0 1 1-1.04 1.08l-5.5-5.25a.75.75 0 0 1 0-1.08l5.5-5.25a.75.75 0 1 1 1.04 1.08L5.612 9.25H16.25A.75.75 0 0 1 17 10\" clip-rule=\"evenodd\"\u002F>",1780676434297]