Deputy Assistant Attorney General Kevin Driscoll Delivers Remarks at the Global Forum on Asset Recovery Action Series in Atlanta

Remarks as Prepared for Delivery

Thank you for that kind introduction.

The Global Forum on Asset Recovery (GFAR) Action Series provides critical opportunities for investigators and prosecutors across the world to come together to build capacity, share expertise, and increase cooperation on specific asset recovery matters. Thank you to the French and the United Kingdom for cosponsoring this GFAR Action Series with the United States.

I also want to thank the organizers of this event and the two previous sessions in this GFAR Action Series this year, including primarily for this event, the UNODC/World Bank Stolen Asset Recovery Initiative. This week's meetings and the previous sessions in this GFAR Action Series required a high-level of coordination and cooperation. Congratulations on your success.

It is, of course, no coincidence that this GFAR Action Series event was timed to align with the 10th Conference of the State Parties (COSP) to the UN Convention Against Corruption. Cross-border cooperation and coordination among nations is a key theme of the UN Convention Against Corruption. Corruption does not respect international borders and corrupt actors use all tools available to them to profit from their schemes.

We know that international cooperation is essential to the work we do to expose cross-border grand corruption and bring cases to recover corruption proceeds and bring corrupt actors to justice. Our collective ability to hold corrupt actors responsible, taking the profit out of these crimes, and returning stolen assets depends on sincere and dedicated cooperation formally and informally at every level of law enforcement.

In 2006, the United States ratified the UN Convention Against Corruption and committed, like the jurisdictions represented here, to take actions to address domestic and foreign corruption affecting our country. The fight against corruption is a top priority for the United States. In 2021, the White House announced that combatting corruption is a core national security interest, releasing the first ever U.S. Strategy on Countering Corruption. Corruption threatens our collective security by weakening democratic processes, stifling development, driving up costs for consumers, and harming those who would play by the rules.

In furtherance of this fight against corruption, today we announce proposed legislation to strengthen anti-corruption law enforcement authorities. These seven proposals would meaningfully expand our ability to effectively carry out our work. These include proposals expanding our ability to bring money laundering and racketeering charges related to corruption and to confiscate and return assets.

Countering cross-border corruption is a key focus of dedicated prosecutors in the department's Criminal Division including corruption specialists in the Money Laundering and Asset Recovery Section's International Unit and the Fraud Section's Foreign Corrupt Practices Act Unit. The Money Laundering and Asset Recovery Section's International Unit is uniquely focused on holding corrupt actors accountable not only through criminal charges with confiscation at sentencing, but using non-conviction-based confiscation proceedings to ensure that these actors are deprived of the proceeds of their crime.

As evidence of the United States' commitment to this fight, in 2010 the Justice Department established the Kleptocracy Asset Recovery Initiative. This initiative, housed in the Money Laundering and Asset Recovery Section's International Unit, brings together a team of dedicated prosecutors, financial analysts, and investigators with the mission to hold corrupt actors and enablers accountable under the law and to return recovered funds for the benefit of the people harmed by the corruption. Over the years we have added more resources for the Initiative and for the FBI's International Corruption Unit, a critical partner in this work.

Since 2010, the Kleptocracy Asset Recovery Initiative has recovered more than $1.7 billion. And as of today, the United States has returned and assisted in returning more than $1.6 billion for the benefit of the people harmed by the corruption through agreements and commitments designed to ensure transparency and accountability.

This is in addition to the assets confiscated by prosecutors and investigators working outside of the Kleptocracy Asset Recovery Initiative in the department's prosecution offices throughout the United States. For example, this past spring, the department returned more than $31 million in embezzled government funds to Mexico recovered by two U.S. Attorney's Offices in Texas working with their law enforcement partners.

Today, I am proud to announce that the United States - working with our foreign partners - have recovered additional funds that we are returning for the benefit of the people harmed by the corruption. Prosecutors in the department's Kleptocracy Asset Recovery Initiative have worked tirelessly with their U.S. investigators and foreign counterparts to recover proceeds of corruption. And today, I am pleased to announce significant steps toward the return of over $100 million in additional funds to three countries.

First, we are returning over $100 million to Malaysia. These are additional funds recovered by the United States which were stolen as part of the embezzlement and bribery scheme involving the Malaysian Sovereign Wealth Fund, 1MDB. This brings the total funds the United States has returned and assisted in returning to Malaysia resulting from this audacious criminal scheme to over $1.3 billion to date. The funds are being used to repay the significant debt incurred by Malaysia through fraud as part of the scheme. We appreciate the on-going assistance of and coordination with the Malaysian authorities in securing these recoveries. Our work on this matter continues. I am pleased that Mr. Mohd Hafaz bin Nazar, Director of Policy, Planning and Research for Malaysia's Anti-Corruption Commission is here today to share in this announcement on behalf of Malaysia. And we look forward to the new U.S. Ambassador to Malaysia, Edgard Kagan, hosting a return ceremony when the funds are transferred to Malaysia.

Next, I am pleased to announce we are returning to Honduras over $1 million which the Kleptocracy Asset Recovery Initiative recovered through our criminal prosecution in U.S. courts of the brother of the former director of the Honduran Institute for Social Security (HISS). The brothers engaged in a conspiracy to launder the proceeds of a kickback and embezzlement scheme involving HISS funds through purchases of rental and commercial real estate in the United States. In this case, the funds will be returned to the budget of the Honduran Institute for Social Security. We commend the work done by the prosecutors and investigators in Honduras in their own investigation and prosecution of this scheme, including the prosecution of the director and others, which resulted in significant evidence being provided to the department for use in our prosecution. The parties have reached an agreement governing the return of these funds which will be signed later in Honduras. I am pleased that Mr. Jaime Torcios Oreamuno, Honduras' Minister of Transparency and the Fight Against Corruption, is here today to share in this announcement.

Earlier this year, we returned to the Federal Republic of Nigeria approximately $1 million in corruption proceeds belonging to a former governor of Bayelsa State in Nigeria, Diepreye Alamieyeseigha, known as DSP. The funds - which represent kickbacks and misappropriated government funds laundered into the United States - were returned to Nigeria under an agreement between the two countries which provides that the funds will be used to rehabilitate certain health care centers throughout Bayelsa State. Importantly, the return process includes monitoring by civil society representatives.

Focusing for a minute on Nigeria, combating laundering of corruption proceeds involving Nigeria through the U.S. financial system has been a high priority for U.S. law enforcement. As many of you know, in 2020 and 2022, we announced and returned a total of over $334 million stolen from Nigeria by former dictator Sani Abacha which were laundered through U.S. banks to other countries. These funds were returned under a detailed agreement entered into between the United States, the Bailiwick of Jersey, and Nigeria that provides for the transparent and accountable use of the funds to construct portions of roads and bridges across Nigeria. Notably, the agreement requires that the implementation of the agreement - the construction - includes Nigerian civil society representatives as a component of the monitoring. The civil society group that was awarded the contract through a competitive selection process reviews the construction sites and examines financial records and their reports are posted on their public website. Their work is paid for out of the recovered funds.

And we have more cases in which we are working with Nigeria and our foreign partners to recover and return additional corruption proceeds to Nigeria which we will report on in coming months. These include additional funds linked to the embezzlement by former dictator Sani Abacha and funds linked to embezzlement several years ago involving the oil ministry. These cases are great examples of international cooperation in asset recovery and the fight to combat corruption around the world. We look forward to continuing to work with the Office of Attorney General Lateef Fagbemi and the chief of the asset recovery team, Mr. Ali-Bozi.

The United States has continued its fight against corruption involving the United States and other countries as well through the filing of additional confiscation litigation. Since the last COSP, we have obtained final orders confiscating more than $60 million dollars involving corruption proceeds in schemes affecting the Philippines, Panama, Canada and Curacao. We look forward to continuing this important work and continuing our strong collaboration with international enforcement authorities both to bring successful cases and to return funds recovered in ways that ensure transparent and accountable use of the funds.

We also look forward to continuing to work with civil society representatives who often provide critical assistance in exposing these cross-border crimes and, can provide invaluable assistance in monitoring the transparent and accountable use of returned funds.

Let me close by reiterating the importance of international collaboration. It is only through our collective efforts that we can truly root out corruption worldwide, hold corrupt actors accountable, recover the proceeds of these schemes, and provide recovery for impacted victims and countries. Thank you for your commitment to this fight and your ongoing and future cooperation.

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