Guernsey, US Sign Asset-Sharing Agreement
by Jason Gorringe, Lowtax.net, London
02 February, 2015
Guernsey has signed an asset-sharing agreement with the United States allowing the two territories to mutually enforce confiscation orders and remit recovered assets.
With the exception of proceeds from certain forms of corruption (such as embezzlement of state funds), if no asset-sharing arrangement exists then, by default, confiscated funds remain in the country which enforces the order, as opposed to the one initiating the request. The asset-sharing agreement sets out the process for enforcing confiscation orders and sharing seized funds.
This is the first intergovernmental agreement that Guernsey has signed relating to asset sharing, though it has executed various ad hoc arrangements with other territories, which it said are negotiated on a case-by-case basis.
The US asset-sharing program has been in place since 1989 with the aim of increasing international co-operation and joint investigations in cases involving narcotics trafficking and money laundering.
Kenneth Blanco, Deputy Assistant Attorney General in the US Department of Justice, said: "The consistent and reliable cooperation we receive from our counterparts in Guernsey has been indispensable to our efforts to recover many millions of dollars in criminal assets from abroad. Because a number of pending US investigations and prosecutions involve assets located in this important international financial center, today's agreement can be expected to serve as a useful tool for asset recovery and sharing in the future."
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