Asset Freezing in International Assistance

Asset Freezing

Asset freezing (or blocking) is a conservatory measure ordered under international MLA to prevent the dissipation of funds linked to a criminal offence.

Legal Framework

Asset freezing under MLA is governed by:

1. The IMAC (art. 63 para. 2 let. d and art. 74a)
2. The Anti-Money Laundering Act (AMLA)
3. The Act on the Freezing and Restitution of Illicit Assets (ARIA, known as the "Lex Duvalier")
4. UN Security Council resolutions

Conditions for Freezing

Assets may be frozen if:

1. There is a link between the assets and the offence pursued abroad
2. The measure is proportionate
3. Dual criminality is satisfied
4. The MLA request is sufficiently reasoned

Procedure

The competent cantonal authority orders the freeze with the bank or financial institution. The account holder is informed and may file an appeal. The freeze remains in force until the final decision on the surrender of assets to the requesting state.

Asset Restitution

Art. 74a IMAC provides for the surrender of assets to the requesting state for confiscation or restitution to rightful owners. Switzerland has developed an internationally recognised practice in the restitution of assets of potentates.

Rights of Good-Faith Third Parties

Third parties who demonstrate having acquired rights in good faith over the frozen assets may oppose their surrender. Their rights are protected by the principle of proportionality.

Emblematic Cases

Switzerland has played a pioneering role in restituting assets of corrupt leaders: Marcos funds (Philippines), Abacha (Nigeria), Duvalier (Haiti), Ben Ali (Tunisia). These restitutions are part of Switzerland's active policy in combating international corruption.