A/HRC/43/66
political upheaval or internal turmoil in the foreign jurisdiction, their purpose being
to preserve assets and prevent them from being transferred elsewhere. 3
22.
More specifically, following the Arab Spring, laws leading to administrative freezes
were adopted by a number of States members of the Organization for Economic
Cooperation and Development (OECD). Canada adopted the Freezing Assets of Corrupt
Foreign Officials Act and the Freezing Assets of Corrupt Foreign Officials (Tunisia and
Egypt) Regulations, in which certain individuals were named. Such laws do not, however,
go so far as to set out the steps for the return of the assets or for their use pending their
repatriation.
23.
The European Union has also adopted measures aimed at freezing the assets of
persons who have misappropriated State funds of Egypt and Tunisia. Switzerland and the
United States have done so in respect of Libya. In 2011, the Security Council, by its
resolution 1973 (2011), decided to impose an asset freeze on members of the Qadhafi
family and to freeze the funds and economic resources owned or controlled by the Libyan
authorities, including those of the Central Bank of Libya, the Libyan Investment Authority
and the Libyan National Oil Corporation. None of the measures, however, address how to
utilize the frozen assets pending their eventual repatriation.
IV. Approach guided by the findings of the High-level Panel on
Illicit Financial Flows from Africa
24.
With regard to the African continent, the problem of illicit financial flows was
thoroughly analysed in the report of the High-level Panel on Illicit Financial Flows from
Africa.4
25.
Although the High-level Panel did not specifically address the issue of the utilization
of illicit funds pending their repatriation, in the report, it included a set of findings that
point the way forward for the countries of origin of funds.
26.
The High-level Panel underlined the political nature of the issue, by acknowledging
that the phenomenon and the effect of illicit financial flows required a solution which
ultimately rested upon negotiations and enhanced international cooperation. 5 In fact, the
political significance of the issue is evident from the ongoing work in various forums to
find a plausible solution. However, according to the High-level Panel, efforts should be
better coordinated to ensure consistency and success in tackling illicit financial flows. 6
27.
The High-level Panel drew attention to the technical aspects of illicit financial flows
and expressed concern about the divergent approaches in the work on disparate components
of illicit financial outflows undertaken regionally by the African Union and regional
economic communities and at the global level by the Group of 20, OECD, the World Bank,
the International Monetary Fund and the United Nations. 7
28.
The High-level Panel further recommended that development partners help countries
of origin to stop illicit financial flows (finding 14). The recommendation could be extended
to wealthy countries of destination agreeing to the possibility of using frozen illicit assets to
finance development projects in countries of origin. Doing so would require significant
political will and acumen. It is an option that should be put on the negotiating table, and
discussions should be held to identify the conditions under which such a novel procedure
could take place.
3
4
5
6
7
6
Larisa Gray and others, Few and Far: the Hard Facts on Stolen Asset Recovery (Washington, D.C.,
World Bank, 2014), p. 41.
Economic Commission for Africa, “Illicit financial flows: report of the High-level Panel on Illicit
Financial Flows from Africa” (Addis Ababa, 2015).
Ibid., p. 65.
Ibid.
Ibid.
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