Safe Havens top lines

Question 1

Safe Havens intro

Answer 1

Due to the UK’s role as a global financial centre and connection to tax havens, it is unsurprising that the UK is a major intermediary or ultimate destination for corrupt assets.

Question 2

What’s the problem with asset recovery? (worldwide)

Answer 2

Current levels of asset recovery around the world are insignificant compared to scale of the problem – UN estimate that detection rate of illicit funds is as low as 1% globally. The Seizure rate is possibly as low as 0.2%.

Question 3

Asset Recovery: What’s the problem? (UK)

Answer 3

Detection is inadequate
Freezing assets is slow
Seizure is difficult
Costs are a deterrent

Question 4

Freezing assets is slow

Answer 4

Administrative process in EU is relatively slow.

Meeting the evidential threshold to freeze suspicious transactions (within allowed timeframe) is often not achievable.

Question 5

Detection is inadequate

Answer 5

Widespread evidence that banks and other private sector institutions are failing in the role to detect and report suspicious transactions.

Question 6

Seizure is difficult

Answer 6

UK authorities often wait for a conviction in origin state before they are willing or able to seize assets.

Question 7

Costs are a deterrent

Answer 7

Asset recovery investigations are expensive and have limited budgets.