Potentate Funds
Po-ten-tate Funds n. [monies illegitimately siphoned off public funds and transferred to international financial centres by holders of political power in dictatorial regimes]
Sadly, history has shown that heads of state and high-ranking officials (so-called "politically exposed persons" or "PEPs") may fraudulently enrich themselves with public money and, if so, that they often move these so-called "potentate funds" abroad and invest them in international financial centres.
Stolen Assets in Switzerland
Cases such as that of former Philippine president, Marcos, Haitian ex-president, Duvalier, and Nigerian ex-president, Abacha, show that the funds of corrupt potentates are regularly deposited in Swiss banks. Switzerland's reputation as a financial centre has suffered considerably because of this.
Restitution of Potentate Funds
If such funds end up in Switzerland, they have to be localised, frozen, confiscated and returned to the state where they originated. The process of restitution places specific demands on the states involved: they need to make sure, once the funds have been restituted to their country of origin that they are not fed back into the cycle of corruption, and sent to foreign bank accounts again. Switzerland relies on the following five tenets in defending against potentate funds: prevention, identification, seizure, judicial assistance, and restitution.
The United Nations and the World Bank are hoping to facilitate the restitution of stolen assets through their Stolen Asset Recovery Initiative (StAR). Switzerland campaigned particularly hard for the inclusion of an obligation to return illegitimate assets and compensate victims in the UN Convention against Corruption (UNCAC). This convention entered into force in 2005. Switzerland is signatory to this treaty and has ratified it in September 2009. The International Centre for Asset Recovery (ICAR) in Basel offers training and consultancy services on the restitution of stolen assets to victim states.
The International Centre for Asset Recovery (ICAR) in Basel offers training and consultancy services on the restitution of stolen assets to victim states.National Agencies:
Aktion Finanzplatz Schweiz (AFP): AFP is leading a campaign on the subject of potentate funds. (http://www.aktionfinanzplatz.ch/en/welcome.html)
Berne Declaration (BD): BD traces some of the cases involving the restitution of potentate fund and the corresponding law suits. (http://www.evb.ch/en)
Transparency International (TI) Switzerland: In coalition with other Swiss NGOs, TI Switzerland campaigns for a democratic restitution of stolen assets into their country of origin and for a focussed and optimal use of the funds on the ground. (www.transparency.ch)no English version available
Federal Department of Foreign Affairs (FDFA): (http://www.eda.admin.ch/eda/en/home.html)
Bread for All:together with other Swiss NGOs, BFA campaigns for the monitored and transparent repatriation of stolen funds. (www.bfa-ppp.ch)
International Agencies:
International Centre for Asset Recovery (ICAR): Besides providing training on the restitution of stolen assets, ICAR has an information platform on the subject of asset recovery. (www.assetrecovery.org)
World Bank: The World Bank offers financial and professional support to developing countries and is responsible, among others, for the financial transactions involved in the restitution of potentate funds. (www.worldbank.org)