The Federal Council opens the consultation procedure on the draft of the federal act on the freezing and restitution of potentates' assets
Bern, 22.05.2013 - Earlier today, the Federal Council opened a consultation procedure on the preliminary draft of the Federal Act on the Freezing and Restitution of Assets of Politically Exposed Persons obtained by Unlawful Means. This draft federal act incorporates current practice and legal bases currently in force, and will regulate all issues relating to the freezing, confiscation and restitution of assets linked to foreign dictators which were obtained by unlawful means.
In early 2011, the Federal Council responded immediately to the political events in North Africa by freezing, as a precautionary measure, the assets held in Switzerland by the deposed Presidents Ben Ali (Tunisia) and Mubarak (Egypt). The aim was to prevent the flight of assets presumed to have been obtained by illegal means and to facilitate the establishment of mutual judicial assistance relations with the countries of origin. The Federal Council based its decision on its powers under the Federal Constitution. In May 2011, it decided to create the legal basis for the future freezing of assets and mandated the federal administration to draw up a draft federal act.
The preliminary draft adopted by the Federal Council during its meeting of 22 May proposes a single act providing for the freezing, confiscation and restitution of potentates' assets which incorporates Swiss practice in this domain, i.e. the measures Switzerland has taken over the past 25 years. The preliminary draft provides for the preventive freezing, as a precautionary measure, of assets of politically exposed persons. In addition, it establishes procedures for the administrative confiscation and restitution of potentates' assets. Lastly, it provides for targeted measures that make it possible to support the State of origin in its efforts to obtain the restitution of assets of criminal origin transferred abroad.
The problem of potentates' assets has been drawing increasing international attention over the last couple of decades. It involves politically exposed persons who enrich themselves by acquiring assets through corrupt acts or other crimes and who embezzle and transfer these assets to international financial centres. These assets are usually public funds which in principle ought to be used to improve the living conditions of the population in the country of origin. Switzerland has repeatedly been confronted with this type of case and has earned a worldwide reputation as a pioneer in this area. Switzerland has already returned to the countries of origin approximately CHF 1.7 billion francs embezzled by politically exposed persons such as Ferdinand Marcos (Philippines), Abacha (Nigeria) and Vladimiro Montesinos (Peru). In addition, in 2010 it passed the Federal Act on the Restitution of Assets of Politically Exposed Persons obtained by Unlawful Means (RIAA). The material provisions which apply in cases where the requesting State has failed to provide sufficient legal grounds to have the assets restituted, will be integrated in the new single act.
Because of its leadership role in the restitution of stolen assets, Switzerland is also working at the international level to promote closer cooperation between financial centres and the countries of origin. The focus is on making the restitution of stolen assets more efficient. This can be achieved through improved coordination, but it is also necessary to examine whether certain procedures can be simplified and standardised. The draft act – the first of its kind in the world – contains a set of clear provisions that will be helpful in this effort.
The consultation procedure relating to the preliminary draft will be concluded on 12 September 2013.
Further questions:
Jean-Marc Crevoisier
Head Information FDFA
+41 (0)79 763 84 10
Address for enquiries
Information FDFA
+41 (0)31 322 31 53
Publisher
The Federal Council
https://www.admin.ch/gov/en/start.html
Federal Department of Foreign Affairs
https://www.eda.admin.ch/eda/en/home.html
