1.2.3 The Asset Recovery Cycle

This section will offer the reader an explanation of how the asset recovery cycle works, from the initial investigation phase to a key goal of asset recovery, which is re-investment of recovered and liquidated assets into high-priority development sectors or other social re-use. Each step will be briefly outlined, giving due consideration to sub-thematic issues that often emerge during any of the below phases.

For example, the principle of sovereignty may hamper and delay the asset tracing and recovery phases, as this principle suggests that all seized and confiscated assets in a foreign jurisdiction must be returned to the Requesting State; this can lead to fewer incentives in the Requested State (where the assets are located) to dedicate resources to seize, confiscate and return such assets.27

Additionally, failure to consult regularly with civil society can lead to public perception that recovered assets are being misdirected, misused or are not being used at all.

The World Bank summarises challenges faced by law enforcement authorities into three categories:28

General/institutional barriers on issues related to the overall context in which asset recovery takes place;

Legal barriers, including the lack of a clear and unambiguous legal framework, often making asset recovery impossible; and

Operational barriers, including communication issues.

The Asset Recovery Cycle

Tracing and identification of assets Freezing and seizure of assets Confiscation of assets Repatriation and recovery of assets

Social re-use