The Puppet Masters : How the Corrupt Use Legal Structures to Hide Stolen Assets and What to Do About It

This report, the puppet masters, deals with the corporate and financial structures that form the building blocks of hidden money trails. In particular, it focuses on the ease with which corrupt actors hide their interests behind a corporate veil and the difficulties investigators face in trying to lift that veil. It serves as a powerful reminder that recovering the proceeds of corruption is a collective responsibility that involves both the public and private sector. Law enforcement and prosecution cannot go after stolen assets, confiscate and then return them if they are hidden behind the corporate veil. All financial centers and developed countries have committed, through the UN Convention against Corruption and international anti-money laundering and countering the financing of terrorism standards, to improving the transparency of legal entities and other arrangements. This report provides evidence of how far we still have to go to make these commitments a reality. Narrowing the gap between stated commitments and practice on the ground has a direct impact on actual recovery of assets.

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Bibliographic Details
Main Authors: van der Does de Willebois, Emile, Halter, Emily M., Harrison, Robert A., Park, Ji Won, Sharman, J. C.
Language:English
Published: World Bank 2011
Subjects:ABUSE, ACCOUNTABILITY, ACCOUNTING, ACQUISITION, ADVERTISEMENT, ANTI-CORRUPTION, ANTI-MONEY LAUNDERING, ANTICORRUPTION, ANTICORRUPTION COMMISSIONS, ARTICLES OF INCORPORATION, BANKS, BENEFICIAL OWNER, BENEFICIAL OWNERS, BENEFICIARIES, BENEFICIARY, BIDDING, BOARD MEMBERS, BRIBE, BRIBERY, BUSINESS CORPORATION, BUSINESS RELATIONSHIP, BUSINESSES, CASH PAYMENTS, CERTIFICATE, CHARTER, CHIEF EXECUTIVE, CHIEF FINANCIAL OFFICER, CIVIL SOCIETY, CLAIM, COLLECTION OF INFORMATION, COLLECTIVE, COMMERCE, COMMERCIAL REGISTERS, COMPANIES REGISTRY, COMPANY, COMPANY LIMITED, COMPANY REGISTRATION, COMPANY REGISTRIES, COMPANY REGISTRY, COMPLIANCE OFFICER, COMPLIANCE OFFICERS, CONFIDENCE, CONTRACTUAL RIGHTS, COPYRIGHT, CORPORATE AFFAIRS, CORPORATE BODIES, CORPORATE ENTITIES, CORPORATE ENTITY, CORPORATE OWNERSHIP, CORPORATE STRUCTURE, CORPORATE STRUCTURES, CORPORATE VEIL, CORPORATION LAWS, CORPORATIONS, CORRUPT, CORRUPT OFFICIAL, CORRUPT OFFICIALS, CORRUPTION INVESTIGATION, CORRUPTION INVESTIGATIONS, COURT OF JUSTICE, CREDITORS, CRIME, CRIME INVESTIGATIONS, CRIMINAL, CRIMINAL PENALTIES, CROSS-BORDER TRANSACTIONS, DAY-TO-DAY OPERATIONS, DEBT, DELAWARE, DEPOSIT, DISCLOSURE REQUIREMENTS, DIVIDENDS, DOMESTIC LAWS, DUE DILIGENCE, E-MAIL, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, EMBEZZLEMENT, ENFORCEABILITY, ESTATE, ESTATE AGENTS, EXCHANGE ACT, FIDUCIARY OBLIGATIONS, FINANCIAL ACCOUNTS, FINANCIAL AFFAIRS, FINANCIAL ASSETS, FINANCIAL CRIME, FINANCIAL CRIMES, FINANCIAL FLOWS, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INTELLIGENCE, FINANCIAL INTELLIGENCE UNIT, FINANCIAL INTELLIGENCE UNITS, FINANCIAL INTERMEDIARY, FINANCIAL MARKET, FINANCIAL REPORTING, FINANCIAL SERVICE, FINANCIAL SERVICES, FINANCIAL SYSTEM, FINANCIAL TRANSPARENCY, FOREIGN CORRUPT PRACTICES, FOREIGN CORRUPT PRACTICES ACT, FOREIGN LAW, FOREIGN LAWS, FRAUD, GENERAL PARTNERSHIPS, GOOD FAITH, GOVERNMENT CONTRACTS, GOVERNMENT OFFICIALS, GOVERNMENT REGULATION, GOVERNMENT SERVICES, GRAND CORRUPTION, ID, IDENTIFICATION NUMBER, ILL-GOTTEN WEALTH, IMAGE, IMPROPER PAYMENTS, INCORPORATED, INDIVIDUALS, INFORMATION SHARING, INITIATIVE, INTEGRITY, INTELLECTUAL PROPERTY, INTERNATIONAL BUSINESS, INTERNATIONAL POLICY, INTERNATIONAL STANDARD, INTERNATIONAL STANDARDS, INTERNATIONAL TRADE, INVESTIGATION, INVESTIGATIONS, INVESTIGATIVE BODIES, INVESTIGATOR, INVESTIGATORS, INVESTMENT BANKING, JUDGEMENT, JURISDICTION, JURISDICTIONAL AUTHORITIES, JURISDICTIONS, JUSTICE, LAW ENFORCEMENT, LAWYERS, LEADERSHIP, LEGAL AUTHORITY, LEGAL ENTITIES, LEGAL ENTITY, LEGAL FRAMEWORK, LEGAL MECHANISMS, LEGAL OWNERSHIP, LEGAL PERSON, LEGAL PERSONS, LEGAL PRIVILEGE, LEGAL PROFESSIONAL, LEGAL REQUIREMENTS, LICENSES, LIMITED, LIMITED LIABILITY, LIMITED LIABILITY COMPANIES, LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, LIMITED PARTNERSHIP, LIMITED PARTNERSHIPS, LTD., MAJOR SHAREHOLDERS, MAJORITY SHAREHOLDER, MATERIAL, MINISTER, MONEY LAUNDERING, MULTINATIONAL, MUTUAL LEGAL ASSISTANCE, NATURAL PERSONS, OFFENSE, OWNERSHIP INFORMATION, PARTNERSHIP, PDF, PENALTIES, PERSONAL PROPERTY, PERSONAL PROPERTY SECURITY, PIERCING THE CORPORATE VEIL, POLICE, POLITICIANS, POSSESSION, PRIVATE COMPANIES, PRIVATE SECTOR, PROSECUTION, PROSECUTORS, PROXY, PUBLIC FUNDS, QUERIES, RECEIVER, RECOVERY OF ASSETS, REGISTRAR OF COMPANIES, REGULATORY AUTHORITY, REGULATORY FRAMEWORKS, REGULATORY OBLIGATIONS, RESULT, RESULTS, SANCTIONS, SCANDAL, SCANDALS, SEARCH, SEARCH FACILITIES, SECURITIES, SERVICE PROVIDER, SERVICE PROVIDERS, SETTLEMENT, SHAREHOLDER, SHAREHOLDERS, SOCIETY, SOLE PROPRIETORSHIP, SOLICITATION, STATUTORY EXCEPTIONS, STOCKHOLDERS, STOCKS, SUBSIDIARIES, SUBSIDIARY, TAX HAVEN, TAX HAVENS, TELECOMMUNICATIONS, TELEPHONE, TERRORISM, TITLE, TRUST LAW, TRUSTEE, TRUSTEES, TRUSTS, UNION, USES, VERIFICATION, WEB, WHISTLE-BLOWERS,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000386194_20111104035215
https://hdl.handle.net/10986/2363
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Summary:This report, the puppet masters, deals with the corporate and financial structures that form the building blocks of hidden money trails. In particular, it focuses on the ease with which corrupt actors hide their interests behind a corporate veil and the difficulties investigators face in trying to lift that veil. It serves as a powerful reminder that recovering the proceeds of corruption is a collective responsibility that involves both the public and private sector. Law enforcement and prosecution cannot go after stolen assets, confiscate and then return them if they are hidden behind the corporate veil. All financial centers and developed countries have committed, through the UN Convention against Corruption and international anti-money laundering and countering the financing of terrorism standards, to improving the transparency of legal entities and other arrangements. This report provides evidence of how far we still have to go to make these commitments a reality. Narrowing the gap between stated commitments and practice on the ground has a direct impact on actual recovery of assets.