Switzerland Proposes New Approach To Confiscate Dictators' Assets

Tom Burroughes

24 May 2013

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.