In Focus (#06 June 2016)

Profit Driven Nature

With the permanent crisis in the economy and banking sector in particular, fraudulent behavior has become, unfortunately, common practice in our country. It can be seen at both state and corporate levels.

The problem is widely discussed at governmental level. The algorithm of the necessary actions is known and open to the public, methods and gaps in actions are revealed and criticized, barriers in the bureaucratic system of state authorities and legislation are identified. Thus, recent reports suggest that no assets belonging to former state officials under Western sanctions have been recovered. The question “Why?” is widely commented, but no figures are presented. Perhaps, the scope of figures may pour some light on this topic?

But let’s go back to the recovery efforts at corporate level. Cross-border commercial asset tracing is a new service for consideration in Ukraine. Another significant question arises out of recovery of assets due to annexation and occupation. What are the time constraints? Is there any chance of seeing at least one public case in the near future?

Asset tracing and recovery practices are relatively new and rather sophisticated as they require not only expertise on how to find, pursue, identify, attach, enforce and collect lost assets, but international reach and cross-border capabilities.

In essence, the high mobility of assets and their profit-driven nature have determined well-designed hiding schemes and make the recovery rate not as high as we would like it to be. But let’s get the detail from our UJBL contributors.

 

Happy reading,

Olga Usenko

 

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