Statement

By the

Representative of the

Islamic Republic of Iran

Before the

Conference of the State Parties

To the United Nations Convention against Corruption

First session

Agenda Item 2

(Asset Recovery)

Amman, 10-14 December 2006

In the Name of God, the compassionate, the merciful

Mr. President,

          First of all, I would like to appreciate the Secretariat for preparing the paper on Asset recovery (CAC/COSP/2006/6) which comprised very useful information on recovery of assets.

          My delegation is of the view that the development of globalization and frequent exchanges has been providing a space for transferring of illicit assets to other countries by criminals, which have been a big obstacle of punishing corrupt crimes in every country. Illicit assets indicate the assets that the criminals acquired by committing corrupt & criminal activities and the benefits brought about from the activities. It includes illegal incomes, properties, facilities or other tools, and the benefits generating from these assets, such as interests, coupons and etc. Recovering illicit assets is the important measures and procedure for the law enforcement agencies of a country to obtain evidence of a corrupt crime, the important measure of protecting public interest, resuming rule of law and maintaining fair and justice, and as well the need of keeping corrupt crime within limits and promoting harmonious development of human society.

Mr. President,

          My delegation believes that recovering proceeds of corruption is one of the key elements in dealing effectively with corruption and has become a significant issue for many States especially developing countries. The illegal misappropriation of funds undermines foreign aid, drains currency recourses, reduces the tax base and increase poverty levels. And it is necessary to recover and restore the assets illegally transferred from the country of origin.

          Accordingly, all the State Parties and signatory states should pave the way for realization of asset recovery in different stages: investigative measures to trace the assets; preventive measures to immobilize the assets; and confiscation. Furthermore, legal proceeding for complying with these stages may be instituted in jurisdiction where the offence took place, in the jurisdiction where the assets are located or in both places simultaneously.

Mr. President,

          Asset recovery has consistently emerged as a top priority in various consultations and deliberations on corruption. Effective asset recovery will help countries redress the worst effects of corruption, while sending a strong message to corrupt officials that there will be no place to hide their illicit assets. It is thus crucially important that we recognize UNCAC provides effective way for international community to trace back the illicit assets and we need to overcome the practical problems that hamper recovery of the proceeds of corruption may vary depending on the countries involved and may generally be attributed  to the following: the absence of the political will among State Parties, weaknesses in the prevention and control of money-laundering, loopholes in legal frameworks and a lack of expertise, capacity and resources to successfully trace, freeze and confiscate assets both domestically and internationally.

Mr. President,

          The Islamic Republic of Iran supports the establishment of an open-ended working group, in accordance with article 63 paragraph 4 of the UNCAC, to advice and assist the Conference of the States Parties to the convention, in the implementation of its mandate on asset recovery (chapter 5 of the convention). Meanwhile, we believe that establishing any other body such as a group of international experts, would not be in the benefit of all Member States. In this regard we can use the innovative initiatives and specialized programmes in the area of asset recovery which have been developed by many international, regional and national bodies. 

          States Parties should adopt laws and procedures to detect and recover the assets of illicit origin and to return them to their countries of origin and deny safe haven to those who are engaged in high level corruption
and who illicitly acquire assets.

          States Parties should attain and implement the highest international standards for transparency and the exchange of information for the implementation of the chapter 5 of the UNCAC on asset recovery.

Thank you