Compliance
Switzerland Proposes New Approach To Confiscate Dictators' Assets
Switzerland’s government has set out proposals on freezing and repaying assets of dictators and other “politically exposed persons”, coming in the wake of moves by foreign leaders to stash money in the Alpine state amid the so-called “Arab Spring” of 2011.
Switzerland’s
government has set out proposals on freezing and repaying assets
of dictators
and other “politically exposed persons”, coming in the wake of
moves by foreign
leaders to stash money in the Alpine state amid the so-called
“Arab Spring” of
2011.
“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,” the government said in a statement yesterday.
“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,” it said.
The move comes after the government, in the wake of the
uprisings
across North Africa and elsewhere, froze assets held in
Switzerland, as a precautionary move, of presidents
Ben Ali of Tunisia
and Mubarak of Egypt.
The Swiss authorities based its decision on existing
constitutional powers. In May 2011, it decided to create the
legal basis for freezing
such assets and mandated the federal administration to draw up a
draft federal
act.
“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,” the Swiss government said in its statement.
“Switzerland has already returned to the countries of origin
approximately SFr1.7 billion embezzled by politically exposed
persons such as
Ferdinand Marcos (Philippines), Abacha (Nigeria) and Vladimiro
Montesinos
(Peru).
In 2010, the country passed the Federal Act on the
Restitution of Assets of Politically Exposed Persons obtained by
Unlawful Means.
The consultation will end on 12 September.
