Managing Seized and ConfiscatedAssets - A Guide for Practitioners

Managing Seized andConfiscated Assets A Guide for Practitioners Lisa BostwickNigel BartlettHermione CronjeT.J. Abernathy III Managing Seized andConfiscated Assets A Guide for Practitioners Lisa BostwickNigel BartlettHermione CronjeT.J. Abernathy III © 2023 International Bank for Reconstruction and Development / The World Bank1818 H Street NW, Washington, DC 20433Telephone: 202-473-1000Internet:star.worldbank.orgEmail:starinitiative@worldbank.orgTwitter:@returningassetsSome rights reserved. StAR—the Stolen Asset Recovery Initiative—is a partnership between the WorldBank Group and the United Nations Office on Drugs and Crime (UNODC) thatsupports international efforts to end safe havens for corrupt funds. StAR workswith developing countries and financial centers to prevent the laundering of theproceeds of corruption and to facilitate more systematic and timely return ofstolen assets. This work is a product of the staff of The World Bank and the United Nations Officeon Drugs and Crime with external contributions. The findings, interpretations andconclusions expressed in this work do not necessarily reflect the views of TheWorld Bank, its Board of Executive Directors, or the governments they represent,the United Nations, or its Member States. The World Bank and the United Nationsdo not guarantee the accuracy of the data included in this work. The boundaries,colors, denominations, and other information shown on any map in this workdo not imply any judgment on the part of The World Bank or the United Nationsconcerning the legal status of any territory or the endorsement or acceptance ofsuch boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver ofthe privileges and immunities of The World Bank or the United Nations, all of whichare specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encour-ages dissemination of its knowledge, this work may be reproduced, in whole or inpart, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressedto World Bank Publications, The World Bank Group, 1818 H Street NW, Washington,DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Cover illustration by Lindsay Jordan KretchenDesign by Sensical Design Contents Stolen Asset Recovery (StAR) Series7 Previous Titles in the StAR Series7 Acknowledgments9 Overview of Policy Recommendations10 Abbreviations18 Audience21Key Terms21How to Use ThisGuide22 1Overview of Asset Management26 1.1 Introductory Remarks261.2 Legal Avenues for Asset Confiscation271.3 Asset Confiscation Life Cycle30 2Establishing an Asset Management Function34 2.1 Introductory Remarks342.2 General Principles352.3 Legal Foundation422.4 Common Structures432.5. Functions of the Asset Management Office472.6 Financial Management502.7 Policies and Procedures542.8 Asset Inventory Systems552.9 Access to Information602.10 Procurement60 3Pre-seizure Planning68 3.1 Introductory Remarks683.2 Identification of Assets for Forfeiture703.3 Asset Type733.4 Asset Location743.5 Asset Ownership and Third-Party Interests753.6 Asset Valuation763.7 Estimation of Asset Management Expenses until Forfeiture783.8 Interim Sale or Interim Use803.9 Likely Asset Disposal Outcomes803.10 Asset Management Office Capacity and Resources833.11 Alternatives to Seizure833.12 Seizure Decisions863.13 Taking Custody of Assets893.14 Unexpected Seizures96 4Management of Seized Assets100 4.1 Introductory Remarks1004.2 Maintaining Seized Assets1014.3 Interim Sales1054.4 Interim Use of Seized Assets1074.5 Supervision of Contractors1094.6 Returnof Seized Assets114 5Disposal of Confiscated Assets118 5.1 Introductory Remarks1185.2 Sale1185.3 Official Use1235.4 Social Reuse1235.5 Salvage, Scrap,or Destruction1255.6 Allocation of Proceeds128 6Seizure and Confiscation of Real Property, Personal Property, andComplex Assets142 6.1 Introductory Remarks1426.2 Real Property1436.3 Personal Property1496.4 Complex Assets173Appendix A. Asset Management Office Operations Plan186Appendix B. New Asset Case Notification Form194Appendix C. Property Inspection Report196Appendix D. Vehicle Inspection Report198Appendix E. Field Report on Seized Business200 Boxes Box 1.1.United Kingdom: Addressing Unfilled Confiscation Orders30Box 2.1.Nigeria: The Registered Trustees ofSERAP v. Minister of Justiceand Attorney General of the Federation(suit FHC/ABJ/CS/407/2020handed down on July 3, 2023)38Box 2.2.Ukraine: Criminal Cases against Former Leadership of AssetManagement Office39Box 2.3.Legal Provisions That Protect Third-Party Interests41Box 2.4.France: AGRASC—An Example of a Well-EstablishedSelf-Standing Asset Management Office47Box 2.5.Nigeria: Asset Management Functions Set Forth in Legislation 48Box 2.6.Romania: Asset Management Office Functions49Box 2.7.France: Self-Funded Asset Management O