REPORTS OF THE PROGRAMMEGROUP 1METHODS OF INVESTIGATION FOR IDENTIFICATION AND
TRACING OF THE PROCEEDS OF CORRUPTION AND
INTERNATIONAL COOPERATION
Rapporteur: Mr. Frederico Skora (Brazil)
Co-Rapporteurs: Ms. Mariyam Shahuma (Maldives)
Mr. Christian Nyakizee (Tanzania)
Chairperson
Co-Chairperson
Members

Advisers

Mr. Harsha Sethunge
Mr. Fujioka Takashi
Mr. Phouangphet Somvorachit
Mr. Puttipong Huntopap
Mr. Manabe Atsushi
Ms. Nirmala Sharma Subedi
Professor Yukawa Tsuyoshi(Sri Lanka)(Japan)(Laos)(Thailand)(Japan)(Nepal)(UNAFEI)

I. INTRODUCTION
This report is the result of the joint effort of all members of Group Workshop 1. Members of Group 1
started their first session on 17 November 2017. Mr. Harsha was elected as Chairperson and Mr. Fujioka as
Co-Chairperson while Mr. Skora was elected as Rapporteur and both Ms. Mariyam and Mr. Christian were
elected as Co-Rapporteurs. The Group was required to choose a topic which carries the theme of 20th
UNAFEI UNCAC Training Programme. After many discussions, all the members agreed to the topic of“Methods of investigation for identification and tracing of the proceeds of corruption and international
cooperation”.

II. INVESTIGATION AND TRACING OF THE PROCEEDS OF CORRUPTION
A. Methods of Investigation
1. Whistle-Blowers
Usually witnesses of corruption and the laundering of proceeds do not feel secure to report cases torelevant authorities. In certain countries people feel reluctant to report corruption based on the belief that noaction will be taken against the corrupt and that the one who reports would face retaliation. For instance, inthe Maldives, the assistant bank manager who disclosed bank statements regarding a huge corruption
scandal in 2016 was prosecuted for leaking confidential information. He was convicted despite his defence ofbeing a whistle-blower and that he disclosed the information in good faith; his defence was not accepted by
the courts, possibly due to political reasons.
2. Anonymous Letters, E-mails and Phone Calls
Anonymous reports are very important for intelligence gathering purposes but should never be fully
relied upon in tracing proceeds of corruption as information from anonymous sources may be unreliable.
However, these sources must not be disregarded and if possible, information from various sources should begathered in a single database so it can be searched efficiently and used to corroborate where more reliable
evidence is found later.
3. Witness Testimony
Like whistle-blowers, witnesses in general are rare for corruption cases. Also, it was pointed out that insome countries that rely heavily on witness testimony (e.g., Nepal) there is a large number of acquittals due towitnesses changing their testimony in the course of the investigation and lack of other forms of evidence tosupport the case.
4. Interrogations
Criminals involved in laundering proceeds of corruption can sometimes reveal their activities during
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interrogation. However, this is not very useful or to be expected in most cases since suspects are usuallyadvised by their lawyers to remain silent. In fact, in certain countries (e.g., Brazil) the right against selfincrimination is broadly interpreted by the supreme courts to an extent that suspects lying or giving false
information during interrogations would not be considered as obstructing justice.
5. Plea Bargaining
Possibly the most essential and effective method for tracing proceeds of corruption is obtaining
information from those involved in the corruption, who would have knowledge of how the money was moved
and how properties were concealed. This method has been in use for several decades in the United States andother countries. However, plea bargaining is a rather new concept for other countries such as the Maldives oris yet to be implemented in some countries such as Japan which will introduce a procedure similar to plea
bargaining in 2018.
6. STRs and Other FIU Documents
STRs and similar records are very important to the investigation of proceeds of corruption as financial
institutions, registries and other institutions and corporation that deal in large sums can inform theauthorities immediately when money is laundered. FIUs play a very important part in the discovery anddisgorgement of illicit proceeds from criminal organizations for this very reason.
7. Bank Records
Basic financial statements and other banking documents can provide investigators with hard evidence ofmoney laundering or just enough to trace the proceeds of corruption. However, in certain countries (e.g.,
Thailand) people can open several accounts in different banks in order to make several smaller transactions
from different accounts instead of one large transaction so as to avoid detection and getting reported to the
FIU. Also, officers in central banks do not have time to check all the KYC forms sent from the banks, and any
person can have several bank statements and credit cards.
8. Tax Reports
Like bank records, tax reports are very useful for the investigation of proceeds of corruption and as
evidence of the crimes connected since such reports are usually based on hard evidence and/or provided by
the suspects themselves. However, this is another area very prone to the interference of the officials involvedin making sure the reports are properly written and filed.
9. Media
The media is not only essential in raising public awareness of corruption but can also be very important inproviding information on the whereabouts of the proceeds of corruption.
10. Controlled Actions
Controlled operations are one of several special means of investigation. When investigators are able tomonitor and record money deliveries from beginning to end, it provides better evidence and broad insight
into the criminal organization.
11. Undercover Operations
Undercover operations such as police or informant infiltrations, although possible, should be used only by
the very experienced and trained.
12. Physical Surveillance
Monitoring meetings and the general ways of living of the suspects and family members can be very
important in determining the locations of proceeds of corruption.
13. Electronic Surveillance
The increase in the use of smartphones and computers connected to the Internet makes electronic
surveillance of suspects and family members very important, even though many programmes nowadays use
some kind of encryption to protect communications.
14. Wiretapping and Examination of Call Records
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conversation applications results in only the sloppy or careless being caught discussing proceeds ofcorruption on the phone. On the other hand, examination of call records is still very useful to establish
relations between people under investigation.
15. Search and Seizure and Proper Analysis of Material SeizedWith the large amount of information being stored in smartphones and computers in recent years, searchand seizures of such objects are extremely important. However, the huge amounts of data to be analyzed
pose a challenge to investigators.
B. Challenges
1. Lack of Free MediaIn some countries the media is not free. The media is an important tool in the fight against crime and must
be free to be able to access and provide information to the public so as to pressure authorities. In Nepal, therecent Panama and Paradise Papers have forced requests through diplomatic channels since several
members of parliament were on the lists that were released.
2. Lack of Political Will
The main difficulty in some countries is the lack of political will to fight corruption. In some countries thisleads to many difficulties, such as challenges in the implementation of UNCAC provisions and fulfilment of its
basic requirements in asset recovery. There needs to be proper legal and institutional mechanisms for it andalso for international cooperation.
3. Lack of Focus on Asset Recovery
Investigators tend to focus on obtaining evidence to secure a conviction for an offence of corruption andfocus less on tracing assets and obtaining evidence for recovery.
4. Low Level of Public Trust in Agencies Dealing with Corruption
In some countries there is a low level of public trust in the organizations that deal with corruption.
5. Cash-Based Economies
In some countries such as Tanzania, a cash-based economy makes it difficult to trace tainted financialtransactions.
6. Lack of Know-How, Training, Special Techniques or Tools by Investigators and Prosecutors
Lack of know-how and training in modern investigation techniques results in ineffective investigations,and it is necessary that investigators learn how to effectively utilize the tools already in place. Furthermore,in certain countries such as Nepal and Maldives, the bodies tasked with investigating corruption and tracing
proceeds do not have forensic or technical capabilities to conduct and make use of special investigativetechniques. Those authorities only utilize traditional methods of investigation and when forensic or special
investigative methods are required, corruption investigation authorities need to seek the assistance of otherlocal or international authorities.
7. Political Appointment of Investigators, Prosecutors and Judges and Other Political Influences
In some countries commissioners are appointed on the basis of political ties instead of qualification, andeven though they can be independent and may not be answerable to anyone, their political appointments
usually still have influence over them. On the other hand, the grassroots are usually not independent frompolitical influence, and that influence on the investigative, prosecutorial and judicial bodies is one of the mostserious threats to the fight against corruption.
8. Culture of Impunity and Immunities for Certain Public Officials
Some countries have a culture of impunity for powerful figures and politicians and also of bribes by people
in order to cut the red tape in government institutions, and a lack of accountability among the law
enforcement authorities and other government institutions. Furthermore, corruption investigation bodies insome countries do not have jurisdiction over certain officials such as members of parliament.
9. Lack of Coordination Between Investigators and Prosecutors
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consultation with prosecutors which in some instances results in evidence being insufficient to prove all
elements of the crime. A crucial technique of the Japanese police is to meet with prosecutors at thecommencement of investigations and obtain their guidance, as prosecutors are equipped with necessary legal
knowledge. While police just obtain guidance from prosecutors in some cases, in more complicated cases
police and prosecutors conduct a joint investigation. It is crucial for investigators to obtain guidance fromprosecutors to proceed with investigation in order to build an effective case for trial.
10. Non-Mandatory Confiscation of Proceeds after Conviction for Corruption
In some countries such as Japan, judges are required to order confiscation of the bribe if the bribe-taker isconvicted of obtaining a bribe. However, in some other countries it is not mandatory for the judges to makean order for confiscation of a bribe or proceeds of corruption even upon a conviction, and authorities are
required to seek asset recovery through other legal avenues.
11. Separation of Jurisdiction for Corruption and Asset Recovery
In some countries such as Maldives and Nepal, the asset recovery process is handled by agencies otherthan the investigative/prosecutorial bodies that deal with corruption.
12. Action against Investigators and Prosecutors in Case of Acquittals
Investigators in certain countries such as Laos face a penalty when the case they investigated results inan acquittal. Such a rule would unfortunately result in investigators being reluctant and afraid to initiate
investigations for fear of job security since the political authority is the final governing body.
13. Conviction-Based Confiscation
While obtaining a conviction in corruption offences is a huge challenge due to various factors, some ofwhich are discussed above, failure to obtain a conviction is an obstacle for asset recovery due to confiscation
being conviction based in several countries. In order to secure evidence and for efficiency, it is important thatmoney laundering is investigated simultaneously with the predicate corruption offence.
C. Proposals
1. Corruption Reporting Centres
Easily accessible corruption reporting centers independent of investigation and prosecution authorities
should be established for the public to lodge complaints of corruption and obtain notices of progress of thecases they report. Such centres need to be less stringent and more public friendly as most public members
are usually discouraged to report cases and obtain information from police or similar agencies due to theirstringent administrative procedures.
2. Better Mechanisms for International Review of Independence and Technical Capability of Organizations
Tasked with Fighting Corruption
Countries should implement UNTOC and UNCAC recommendations and establish truly independent
commissions or investigative agencies, as well as prosecutors and judges. To this end, it is essential for there
to be international bodies in place to supervise the independence of such agencies since one country cannot
go against corruption alone: it needs the support of the others. Even though UNCAC provides mechanisms toreview countriesʼ compliance with the treaty, it is considered insufficient. In order to be considered compliant,countries should have sophisticated tools and trained personnel to investigate corruption and proceeds andalso have independence from political interference.
3. Better Coordination Between Investigators and Prosecutors
Prosecutors and investigators should meet and share information on what evidence they have incorruption and asset recovery cases. In cases of serious crimes there should be prosecution guided
investigations, so as to show investigators what would be needed in courts to obtain convictions.
4. Specialized and Independent Courts
There should be special courts for corruption cases with independence from political appointments,
promotions and transfers and without pressure from powerful public officials, politicians and businessmen.
Judges in such courts should receive specialized training in corruption and seizing proceeds.

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5. Protection for Investigators
It was agreed that investigators whose cases fail in court and do not lead to convictions should have somedegree of immunity as to make sure they are not intimidated from doing their jobs.
6. Public Trials
Publicity of trials is also relevant to provide independence to judges to rule against powerful officials andpoliticians. The media, both regular and social media, should be encouraged to report on official acts and trialsof corruption.
7. Enactment of Legislation to Criminalize Illicit Enrichment and Corruption in the Private Sector, Witness
Protection among Other Legislation Proposed in UNCAC
Legislation proposed in UNCAC but made optional for treaty parties should be enacted to facilitate theseizing of the proceeds of corruption.
8. Adoption of Non-Conviction-Based Forfeiture
In countries with only conviction-based forfeiture it is very difficult to trace and seize the proceeds ofcorruption. Thus, it is crucial for the law to provide for non-conviction-based forfeiture.
9. Promoting a Less Cash-Based Economy
Governments should not encourage cash-based economies as cash transactions are very difficult to trace.
10. Efficient Central Banks and Tax and Customs Agencies
Central banks and tax and customs agencies have a role that is essential for the investigation of theproceeds of corruption. Hence, in addition to investigation authorities, such agencies need to be efficient.
11. Transparency of Government Acts and Expenditures
It is crucial that all public transactions and government activities are transparent in order to eliminate
any opportunities for public officials to engage in corruption. Thus, governments must establish systems foreasy access to information on public affairs for the public and digitalize government transactions where
possible.
12. Demanding Proper Explanation of Origin of Funds for Large Purchases
Buyers should be required to produce a certificate from tax authorities attesting to the buyersʼ financial
capacity when making transactions of large amounts. Title to properties bought without producing such acertificate shall not pass to the buyer, and the buyer shall be liable for an offence under anti-corruption,bribery or illicit enrichment laws.

III. INTERNATIONAL COOPERATION
A. Methods
1. Informal Networks
All countries acknowledge the importance of informal networks for asset recovery: investigator,
prosecutor and judicial informal international networks, such as AIAMP, IBER-RED, WACAP, REFCO;
informal asset recovery networks, such as RRAG (GAFI-FATF Network for the Recovery of Assets); Carin(Camden Asset Recovery Inter-Agency Network); investigator, prosecutor and judicial attachés in embassies;
among several others. It is believed that in the coming years there will be a greater reliance upon suchnetworks, as seemingly local cases are becoming more international every year due to money laundering andinternational procurement. However, it was pointed out that if there was a common legal framework in all
countries, such informal networks would not have to be used, and investigators could apply directly to thecourts for assistance. Nevertheless, in the cases of countries that are not a part of UNCAC, such informal
networks would remain useful, for it is important to know the systems of these countries in order to makerequests, and even then, it is not guaranteed that it will be done.
2. Intelligence Gathering
Reliable information that can be used to initiate formal investigations can be obtained through Interpol
and the Egmont Group of FIUs.

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3. Formal Requests for Legal AssistanceFormal requests can be made through MLATs, UNCAC, UNTOC, other multilateral treaties and bilateralagreements and are processed by each countryʼs central authorities.
B. Challenges
1. Slow or No Response to Assistance Requests
A major issue highlighted with regard to International Cooperation is that MLA requests are notresponded to timely by requested countries, which effectively stops cases from advancing in court.
2. Different Authorities for Legal Assistance Requests and Asset Recovery
Also in some countries there is one central authority for MLATs (e.g., Prosecutor Generalʼs Office) but
another authority (e.g., the Attorney General) for asset recovery. If this recovery of assets was also inside thestructure of the investigative/prosecutorial bodies, it would be more effective.
C. Proposals
1. More Use of Joint Investigative Teams
Since crime has been without borders for a long time now and has managed to contaminate our economies
and governments, large parts of our sovereignty are in the hands of criminals. It is also time for investigators,
prosecutors and judges to become transnational as well. There is already a system for this underway inEurope, and international treaties already allow for Joint Investigation Teams (JITs), which in a sense are theembryos of the multinational institutions that we need. There should be international bodies of investigators
to trace the proceeds of corruption. Countries that rate higher in the fight against corruption should assist in
this matter.
2. More Investment in Major Foreign Languages
In order to achieve better integration, the language barrier between investigators, prosecutors and judges
from different countries has to be destroyed. If they cannot communicate freely among themselves, it will bedifficult to achieve any kind of collaboration. Although it is true that many central authorities have some kindof translation system for documents and requests, this is costly and ineffective. Investigators, prosecutors andjudges should receive additional training in English, and new employees should be recruited taking into
consideration their ability in a major foreign language.
3. More Spontaneous Collaborations from FIUs
There should be an increase in spontaneous collaboration between countries, especially from FIUs, sincethose are usually very important in speedily seizing the proceeds of corruption that can be easily transferredfrom country to country.
4. More Training for Authorities to Use International Collaboration
Many authorities make very little use of the international structure to fight corruption either because
they do not know it is in place or due to the belief that international cooperation is a complicated process thatwill take too much time. However, the increasingly common usage of foreign bank accounts and the use ofinterposed persons make international cooperation a necessity to track and recover the proceeds ofcorruption. Therefore, there should be an investment in explaining to the authorities how they can make useof international cooperation and make this process more streamlined for them.
5. Common Legal Framework for Investigating Proceeds of Corruption
There is no formal mechanism to force international assistance. As corruption and money laundering arebeing committed beyond borders, it is crucial to have a mechanism that compels requests from foreignauthorities to be processed and delivered. There should be a common framework so that informal networks
do not have to be used and investigators can come directly to courts, such as the international mechanisms inplace with regard to intellectual property laws. Due to the differences in criminal justice and basic legal
systems of jurisdictions, UNCAC itself left some of its provisions as optional for Member States. However,
due to the nature of corruption and money laundering offences, it is crucial to harmonize the corruption andanti-money laundering laws of all countries to ensure effective international cooperation.

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