Stolen Asset Recovery
Reclaiming public funds
The wealth of many emerging nations are stolen by their rulers and local elites with the assistance of facilitators in the global financial system.
Some local elites ensure their governments enable this outflow to continue unchecked. Global institutions captured by the elite take inadequate steps to slow the inflow of stolen wealth into their banking systems.
Global multilateral institutions that highlight corruption in emerging markets should assist these nations by also shining a spotlight at the facilitators in the Global North.
Developed nations continue to benefit from wealth stolen from emerging countries being channelled through their banking systems.
Sri Lanka has allegedly lost billions of dollars to corruption.
Sri Lanka needs to protect its people's wealth.
The global financial system is not broken, it is designed to benefit just a few.
Tax havens, off-shore banking, banking secrecy, de-regulation, weak enforcement and monopoly profits are some of its key components.
Emerging nations need to demand change and support the development of alternative institutions.
Calling global institutions to protect the poor through real action.
United Nations
The Stolen Asset Recovery Initiative (StAR)
World Bank
End safe havens and corrupt funds.
International Monetary Fund
Fight against illicit financial flows
Asian Development Bank
Enhancing ADB role in combatting money laundering.
Holding the government accountable.
Sri Lanka Government
Who are the local beneficiaries and by how much?
Central Bank of Sri Lanka
What are the losses to the country?
The Magnitsky Act is a means of overcoming many of the tools bad actors have used to hide their wealth and enjoy the trappings of the West.
It authorises the President of the USA to impose targeted sanctions on corrupt foreign officials and their associates.
Although it is used as a political tool against nations in the global south, considered unfriendly to them, on human rights issues, it is being considered to address corruption as well.
Europe has now adopted the European Magnitsky Act that allows the EU to freeze the assets of, ban entry to, and prohibit dealings with human rights abusers wherever they may be located.
Facilitators of global corruption in the developed world should also be sanctioned.
The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog.
In partnership with INTERPOL, the FATF is working with national authorities to ensure that asset recovery is a key pillar of a countries’ approach to tackling money laundering and terrorist financing. It is vital for national authorities to develop effective systems to trace, seize and confiscate stolen funds and assets, and to return them to the country of origin.
Sri Lanka needs to prioritise the recovery of stolen assets and hold accountable, those who benefited.