Draft legislation to facilitate the confiscation and return of illicit potentate funds
Bern, 05.12.2008 - In a decision taken on 5 December 2008, the Swiss Federal Council mandated the Federal Department of Foreign Affairs (FDFA) to draft legislation that will make it possible to confiscate the assets of illicit origin of politically exposed persons, with a view to their restitution to the people of the country in which the funds originated. Following up the Gutzwiller Postulate on judicial assistance with “failed states” the law will also include measures for the follow-up of the asset restitution.
Following up the Gutzwiller Postulate of 21 June 2007 on judicial assistance with “failed states”, the Swiss Federal Council decided to enact legislation necessary for the confiscation of assets of illicit origin deposited in Switzerland by politically exposed persons. The FDFA was mandated to prepare draft legislation for this purpose.
This law would apply in the event that mutual assistance proceedings between Switzerland and the country in which the funds originated were to fail. Furthermore, under strict conditions, it will reverse the burden of proof to the holder of the frozen assets to demonstrate their non-illicit origin. If this proof cannot be provided then the assets subject to litigation will be confiscated by a decision of the judicial authorities, thus making it possible to return the funds to the country of origin. This law will also include measures to for the follow-up of the asset restitution to ensure the transparency of a process that is intended to benefit the people of the country in which the funds originated.
In the past 20 years, Switzerland has returned more illicit funds to the country of origin that any nation in the world, totalling more than USD 1.6 billion. Notwithstanding this positive result, the Federal Council wants to perfect the existing legal framework.
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