Nõudekiri

REFERENCE INFORMATION

ABOUT ASSET RECOVERY COMMITTEE

OF THE GENERAL PROSECUTOR’S OFFICE

OF THE REPUBLIC OF KAZAKHSTAN

(March, 2025)

The Republic of Kazakhstan actively supports international initiatives to

counter modern challenges and threats, including the fight against corruption.

As is known, corruption has a negative impact on all three dimensions of

sustainable development: economic, social and environmental.

Corruption undermines democratic processes, increases injustice in society,

and leads to the unjust enrichment of a narrow group of people.

In this regard, Kazakhstan is taking a set of measures to strengthen the country

as a fair and honest state.

Mechanisms for the protection of human rights have been significantly

improved.

The Law of the Republic of Kazakhstan “On the return of illegally

acquired assets to the state” (hereinafter referred to as the Law) also pursues the

goals of protecting the rights of the people of Kazakhstan and restoring social justice.

The implementation of the Law is entrusted to three main structures.

This:

- Commission under the leadership of the Prime Minister;

- Asset Recovery Committee of the General Prosecutor's Office;

- Management Company.

The Commission is developing recommendations on systemic measures,

mechanisms and methods for asset recovery. Its members include the first heads of

key government bodies, deputies of both Houses of Parliament, and representatives of

civil society.

The Asset Recovery Committee (hereinafter referred to as the Committee,

department) is a working body of the Commission and implements all the main

functions of identifying, verifying the origin and returning illegally acquired assets.

For these purposes, the Committee also carries out international legal cooperation.

The Management Company ensures the safety, manages and sells the

returned assets with the proceeds credited to a special state fund.

The Committee applies new mechanisms and methods of return established by the

relevant Law.

One of the main principles of the Law is to encourage voluntary return.

Its advantage is that part of the property can be retained by the subject.

In addition, a voluntary return agreement may provide not only for the transfer of

assets to the state, but also other socio-economic obligations.

For example, it can be invested in projects that the country needs and that directly

affect the welfare of citizens.

In addition, upon voluntary return, the subject receives a number of legal

opportunities and guarantees, including exemption from liability.

To date, the Commission under the leadership of the Prime Minister of the country

has approved the conclusion of more than 57 agreements and other measures for the return

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of assets worth over 1.8 billion euros. More than 1 billion euros have already been

returned to the state.

The Management Company has sold assets worth more than 29 million euros,

including foreign assets.

It is important to note that the Management Company uses in its activities different

methods of managing assets provided for by law.

These are property lease (hiring), transfer to trust management, conservation, sale,

transfer of assets to state ownership and others.

Money from the return of assets is directed to social and economic projects. These

are projects in the field of healthcare, education, support for people with special needs,

orphans, the unemployed, and so on.

Money from the return of assets is directed to social and economic projects. These

are projects in the field of healthcare, education, support for people with special needs,

orphans, the unemployed, and so on.

To date, the Government has approved financing from the Special State Fund for 16

social projects worth 207 million euros.

Among them are 6 schools in four regions of the country for 15 million euros.

For example, a new school with 150 seats will be built in one of the villages.

This will eliminate the shortage of student places and expand employment

opportunities for the local population.

In three more regions, 4 healthcare facilities will be modernized using the 127

million euros returned to the state.

They will be equipped with innovative medical equipment and the latest technology,

and additional jobs will open.

In two regions it is planned to build 2 kindergartens worth 18 million euros, and in

two more regions 3 sports complexes worth 23 million euros will be built.

A number of subjects of the Law additionally assumed obligations to implement

investment and social projects.

This includes the construction of cultural, educational, and sports facilities, and the

financing of rehabilitation and socialization programs.

Investment projects are expected to build and modernize production facilities, create

new jobs, increase tax revenues and increase the country's export potential.

Agreements with subjects define specific parameters of objects, success criteria and

responsibility for their failure.

If the conditions are violated, a fine and penalties will be paid; if the project is not

implemented, an equivalent amount will be transferred to the Special State Fund.

Thus, the work of the Committee on voluntary asset recovery covers all the main

components - these are:

1) replenishment of the republican budget;

2) return of assets in kind;

3) reinvestment of capital;

4) realization of social projects.

Today's achievements of the Committee are the result of the manifestation of

goodwill by the subjects of the Law to build a dialogue with the state and willingness to

invest acquired capital in the national economy for the benefit of the people and the

prosperity of the country.

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If there is no such initiative and the Committee has reasonable doubts about the

legality of the origin of the asset, then enforcement mechanisms may also be used.

The main tool is the unexplained wealth claim.

In such court cases, the main burden of proof lies with the defendant.

If he cannot reliably refute the Committee’s arguments about the illegality of the

origin of the asset, then the property, by court decision, turns into state income.

By filing such claims, the return of assets for 28 million euros to the state was

ensured.

A stable judicial practice has been formed on claims of unexplained wealth.

The defendant immediately admitted one of the claims and voluntarily returned the

illegally acquired property to the state.

In the second claim, a court decision was made recognizing the property in question

as assets of unexplained origin.

This judicial act, totaling over 9.2 million euros, has been fully executed.

Among the assets returned to the state are money, jewelry and branded accessories,

as well as objects of historical and cultural value.

The third claim of the Committee, satisfied by the court, provides for the

conversion of 100% of the shares of an illegally privatized company to the state and

the fourth claim was satisfied by court for 130 thousand euros.

An important area of the Committee’s activities is international legal cooperation.

The Committee signed memorandums of cooperation with the National Central

Bureau of Interpol of the Ministry of Internal Affairs of the Republic of Kazakhstan, the

National Anti-Corruption Center of the Republic of Moldova, the Commission for the

Confiscation of Illegally Acquired Property of the Republic of Bulgaria and the New

Bulgarian University.

Contacts have been established and interaction is being carried out with key

international organizations. These include the UN, OSCE, Council of Europe, OECD,

Interpol, FATF and inter-agency networks in the field of asset recovery GlobE, CARIN,

ARIN and BAMIN.

Representatives of the Committee are identified as contact persons in the networks

and actively participate in their meetings.

Committee’s employees took part in meetings of the Interpol working group on the

implementation of a new tool for the search and return of assets - “Silver Bulletin” and

“Silver Notice” in Rome (Italy), as well as the BAMIN networks in Struga (North

Macedonia), GlobE in Beijing (China), CARIN in Paris (France), ARIN in Seoul (Korea)

and Sydney (Australia), FATF in Vienna (Austria).

At the invitation of the OSCE, in April 2024, the head of the Committee, as a

speaker, took part in a meeting of the Economic and Environmental Committee of this

organization in Vienna (Austria) on the topic: “Challenges and opportunities in the fight

against corruption and promoting asset recovery through the effective use of digital tools.”

In addition, representatives of the Committee visited Brussels and Mechelen

(Belgium), Bern (Switzerland), Indore (India), Budapest (Hungary), Belgrade (Serbia), St.

Petersburg (Russia), Minsk (Belarus), Tashkent (Uzbekistan) and Baku (Azerbaijan).

During the visits, the Law and the work of the Committee were presented, and bilateral

meetings were held to establish long-term cooperation.

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Such measures contribute to the effective exchange of best practices in asset

recovery, as well as the development of the competence of agency employees.

As a result of productive interaction with foreign partners, including the OSCE and

UNODC, more than 50 prosecutors received training on current topics.

Representatives of competent authorities of foreign countries, leading professors and

international practitioners-experts in the field of asset recovery, as well as an honorary circle

of academicians were involved in the training events.

At the initiative of the OSCE, a national expert provided technical assistance to the

Committee, including analyzing international experience in asset recovery in the areas of:

- application of civil confiscation of property;

- searching for information about companies, movable and immovable property,

including securities, using OSINT tools;

- providing asset recovery units with direct access to information constituting

banking, tax and other secrets, as well as information from financial intelligence units;

- alienation of assets.

The purpose of all ongoing activities is to exchange experience, study standards and

further improve mechanisms and methods for asset recovery.

The Committee continues to actively expand international cooperation, both in

multilateral and bilateral formats.

Asset Recovery Committee

General Prosecutor's Office

Republic of Kazakhstan

Islandi väljak 1 / 15049 Tallinn / +372 637 7000 / [email protected] / www.vm.ee / Registrikood 70002526

Riigiprokuratuur

Justiits- ja Digiministeerium

Siseministeerium

25.04.2025 nr 15.2-2/2338-1

Kasahstani koostööettepanekust

Austatud kolleeg

Välisministeerium edastab pädevatele asutustele Kasahstanilt saadud informatsiooni varade sissenõudmise seadusandlusest ja praktikast. Kasahstani teeb ettepaneku antud küsimuses sõlmida pädevate asutuste vahel partnerlus- ja koostöömemorandum, kus Kasahstani poolt oleks pädev asutus peaprokuratuuri varade sissenõudmise komitee. Välisministeerium peab vastama Kasahstani saatkonna noodile ning küsib pädevate asutuste arvamust partnerlus- ja koostöömemorandumis sõlmimise vajalikkuse kohta.

Lugupidamisega

(allkirjastatud digitaalselt)

Margus Tsahkna

minister

Lisad: 1. Kasahstani saatkonna noot

2. Ülevaade Kasahstani seadusandlusest

3. Kasahstani partnerlus- ja koostöömemorandumi eelnõu

4. Ülevaade Kasahstani praktikast

Mai Hion 637 7413

[email protected]

MEMORANDUM

OF PARTNERSHIP AND COOPERATION

BETWEEN THE ASSET RECOVERY COMMITTEE OF THE

GENERAL PROSECUTOR'S OFFICE OF THE REPUBLIC OF

KAZAKHSTAN AND ______

OF THE __________________

The Asset Recovery Committee of the General Prosecutor's Office of

the Republic of Kazakhstan and the _____________of the _________,

hereinafter referred to as «the Parties»,

guided by the friendly relations between their two countries,

expressing a mutual desire and interest in enhancing the

effectiveness of asset recovery, combating organized crime and corruption,

and providing mutual legal assistance,

convinced that the implementation of joint projects and the exchange

of expertise will strengthen cooperation between the states of the Parties,

aiming to enhance international legal cooperation in the areas of

asset identification (disclosure), verification of asset origins, the application

of provisional and interim measures, and the repatriation to the state of

unlawfully acquired assets, as well as the exchange of information,

have come to the following understanding:

PARAGRAPH 1

The purpose of this Memorandum is to define partnership

mechanisms and forms of cooperation for the effective use of the

professional, expert, informational potential, and experience of the Parties.

The Parties intend to develop and promote cooperation in the areas

of advanced training and experience exchange for identifying, searching

and recovering criminal assets. This cooperation will also extend to

protecting the economic interests of the Parties and combating international

organized crime and corruption through scientific, practical cooperation,

and human resource development.

The Parties will seek ways to establish mutually beneficial

relationships between each other and with potential partners and will

engage in activities aimed at leveraging Kazakh and _____ experiences in

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the detection, tracking, and management of assets derived from corruption

and other criminal activities.

The Memorandum will govern the exchange of information and

documents between the Parties, with the exception of confidential

information.

Scanned electronic copies of documents exchanged via email

between the Parties under this Memorandum will be considered as valid as

original documents until the exchange of original documents is completed.

This document will serve as the foundation for coordinating actions

between the Parties to achieve the objectives delineated herein.

PARAGRAPH 2

With the objective of enhancing the interaction between the

competent authorities, the Parties within the limits of their competence

intend to:

(a) Organize activities for staff development and training.

(b) Convene joint meetings, seminars, conferences, and forums.

(c) Facilitate mutual exchanges of experience in the search,

detection, seizure, and recovery of criminal assets.

(d) Consult on matters related to enhancing the effectiveness of

implementing international legal instruments in the asset tracing domain.

(e) Assist in the establishment and development of relationships with

international organizations and foundations.

(f) Conduct joint analyses to evaluate the potential for expanding and

deepening bilateral cooperation in the tracing and recovery of criminal

assets.

(g) Exchange and analyze information available to the Parties to

foster cooperation and enhance the effectiveness of their activities.

(h) Exchange official documents, requests, and information letters as

per established legal procedures.

(i) In case of necessity and in the manner established by the national

legislation of the Parties, the Parties assist each other:

- in carrying out the search, collection, analysis and monitoring of

information on the origin of assets available to the Parties to counter the

illegal acquisition of assets;

3

- in the courts' examination of claims for the establishment of legal

status or ownership of assets;

- in ensuring recognition and enforcement of decisions of courts or

other competent authorities regarding search (disclosure), confirmation of

the legality of origin, application of preliminary interim measures, interim

measures, security, management, sales and asset recovery;

- in ensuring recognition and enforcement of decisions of courts or

other competent authorities regarding search (disclosure), confirmation of

the legality of origin, application of preliminary interim measures, interim

measures, security, management, sales and asset recovery;

(j) To carry out inter-agency interaction and coordination of the

activities of State, law enforcement and special State bodies on asset

recovery issues in the manner prescribed by the national legislation of the

Parties;

(k) To address to each other requests for information, for seizure, for

other provisional interim measures, interim measures or forfeiture of assets

and for obtaining evidence, as well as other documents in the manner of,

provided for by the national legislation of the Parties;

(l) To carry out international legal cooperation in the criminal,

administrative, legal and civil law spheres for the purpose of asset

recovery, as well as in the field of search (disclosure), confirmation of

origin, application of provisional interim measures, and, interim measures

and return of illegally acquired assets to the state.

PARAGRAPH 3

The Parties intend to undertake the following activities:

(a) Conduct working meetings between heads and experts of the

international legal cooperation units to discuss best practices in sending and

executing requests for information;

(b) Organize practical training, including field training on the

exchange of experience in countering money laundering and the

legalization of criminal proceeds, as well as the illegal transfer of assets,

including by applying measures to search (disclosure), confirm the origin

of assets, preliminary interim measures, interim measures, measures for

voluntary or forced return of assets, management of assets confiscated or

turned into state income and other measures;

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(c) Discuss the legal aspects of forming and operating joint

investigative teams aimed at protecting the economic interests of each

Party, in accordance with international and national legislation;

(d) Implement joint initiatives to inform the public about the

collaboration and interactions under this Memorandum;

(e) Engage in other forms of interaction and cooperation as

previously defined by the Parties.

The Parties will not interfere with each other’s activities within the

scope of their respective authorities.

To fulfill the objectives of this Memorandum, the Parties may, by

mutual consent, invite other institutions, organizations, public associations,

civil society entities, and business representatives to collaborate and

participate, and may establish temporary working groups for this purpose.

PARAGRAPH 4

The Parties independently bear the costs incurred in the execution of

this Memorandum within the limits of the funds provided in accordance

with the national legislations of the States of the Parties, unless otherwise

specified by the Participants in each specific case.

PARAGRAPH 5

In the event of any issues related to the application of the terms of

this Memorandum, the Parties will exhaust all possible measures to resolve

such issues through negotiations and consultations.

PARAGRAPH 6

For the purposes of this Memorandum, the Parties will communicate

directly through the following designated structural units:

For the Kazakhstani Party: Department of International Legal

Cooperation of the Asset Recovery Committee of the General Prosecutor's

Office of the Republic of Kazakhstan, located at 14 Mangilik Yel Avenue,

Astana, 010000, Republic of Kazakhstan. Tel: 8 7172 30 19 00, Email:

[email protected]

For the ______ Party: ______________. Tel: _____________,

Email: _________________

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Each Party will designate one or more contact persons responsible

for maintaining relations with the other Party.

PARAGRAPH 7

The Parties may publicly disclose the signing of this Memorandum

by sharing the event on social media and through their official online

platforms.

News related to the activities or events under this Memorandum with

the exceptions of its specific terms may be published on the Parties’ official

websites, Instagram, LinkedIn, Facebook, and/or other print media.

PARAGRAPH 8

Amendments and additions to this Memorandum may be made by

mutual agreement of the Parties. Such amendments and additions will be

documented in separate protocols, which will become integral parts of this

Memorandum and will enter into effect following the procedures outlined

in Paragraph 10 of this Memorandum.

PARAGRAPH 9

This Memorandum does not constitute an international treaty within

the meaning of the Vienna Convention on the Law of Treaties of 23 May

1969 and does not create for the Parties and their respective states legal

rights or obligations governed by international law.

PARAGRAPH 10

This Memorandum will enter into effect on the date of its signature

and will remain in effect indefinitely unless either Party, not later than one

month in advance, gives written notice to the other Party of its intention to

cease its application. In the event of cessation of this Memorandum, any

activities initiated under this Memorandum and not yet completed will

continue and will be completed according to the terms previously specified

by the Parties, unless completion is deemed impossible.

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Signed at _____ «__» _______, 2025 in two original copies in

Kazakh, _______ and English. In case of discrepancy between the texts, the

Parties will refer to the text in English.

For the Asset Recovery Committee

of the General Prosecutor’s Office of the Republic of Kazakhstan

___________________________

For the _____________

of the ________

____________________________

REFERENCE MATERIAL

ASSET RECOVERY COMMITTEE OF THE

GENERAL PROSECUTOR’S OFFICE OF THE REPUBLIC OF KAZAKHSTAN

MARCH 2025

LAW WAS ADOPTED - 12 5

- COMMITTEE WAS

ESTABLISHED

JULY

2023 OCTOBER

2023

1

2

- COMMISSION CHAIRED BY THE PRIME MINISTER DEVELOPMENT OF RECOMMENDATIONS ON SYSTEMIC MEASURES AND

METHODS OF ASSET RECOVERY

- ASSET RECOVERY COMMITTEE WORKING BODY OF THE COMMISSION CARRYING OUT IDENTIFICATION

AND VERIFICATION ORIGIN AND RETURN OF ILLEGALLY ACQUIRED ASSETS

- MANAGEMENT COMPANY ENSURES THE SAFETY OF RETURNED ASSETS, MANAGES AND IMPLEMENTS THEM

EXECUTORS OF THE LAW

3

- INVOLVEMENT OF ASSETS IN LEGAL CIRCULATION

- ENSURING THE SUSTAINABLE ECONOMIC AND

SOCIAL DEVELOPMENT OF THE COUNTRY FOR THE

BENEFIT OF THE PEOPLE

PURPOSES OF THE LAW

BASIC PRINCIPLE OF THE LAW –

INCENTIVES VOLUNTARY RETURN

4

KEEPING PART OF THE PROPERTY TO BE RETURNED

LEGAL GUARANTEES, INCLUDING POSSIBILITY OF RELEASE

FROM LIABILITY

MOST SUBJECTS OF THE LAW INDEPENDENTLY INITIATE

COOPERATION AND VOLUNTARY RETURN PROCEDURES

INDEPENDENT REALIZATION OF INVESTMENT AND SOCIAL

PROJECTS

ADVANTAGES OF THE

VOLUNTARY RETURN

€1 BILLION

MORE THAN

OVERTURNED IN FAVOR OF THE STATE

COMMISSION APPROVED RECOVERY

€1,8 BILLION

MORE

5

ABOUT 57 AGREEMENTS AND OTHER RECOVERY MEASURES

WAYS OF ASSET MANAGING

TRANSFER TO TRUST MANAGEMENT

IMPLEMENTATION

TRANSFER OF ASSETS TO STATE OWNERSHIP, ETC.

TRANSFER FOR RENT

6

MANAGEMENT COMPANY

SOLD ASSETS FOR €29 MILLION

GOVERNMENT APPROVED

16 SOCIAL PROJECTS FOR €207 MILLON

7

EDUCATION

SUPPORT FOR PERSONS WITH SPECIAL NEEDS,

ORPHANS, UNEMPLOYED, ETC.

HEALTHCARE

6 SCHOOLS FOR €15 MILLION

8

EQUIPPED WITH THE LATEST EQUIPMENT

SPACIOUS AND ERGONOMIC OFFICES

IMPROVING CONDITIONS FOR INCLUSIVE LEARNING

MODERNIZATION OF 4 HEALTHCARE

FACILITIES FOR €127 MILLION

9

EQUIPPED WITH ADVANCED MEDICAL EQUIPMENT

IMPLEMENTATION OF INNOVATIVE TREATMENT METHODS

CREATION OF ADDITIONAL BEDS

CONSTRUCTION OF MODERN

2 KINDERGARTENS

AND 3 SPORTS COMPLEXES FOR €41 MILLION

10

11

REALIZATION OF INVESTMENT

AND SOCIAL PROJECTS HAVE BEEN STARTED

BY THE SUBJECTS OF THE LAW

FOR €100 MILLION

SOCIAL PROJECTS,

REALIZED BY SUBJECTS OF THE LAW:

TRAINING CENTER, REHABILITATION CENTER AND

CENTER FOR MODERN CULTURE

MULTIPLE APARTMENT BUILDING FOR CITIZENS IN NEED

WRESTLING HALL AND DORMING BLOCK OF THE BOARDING SCHOOL

FOR GIFTED CHILDREN

SPORTS ARENA FOR TEAM SPORTS, REHABILITATION CENTER

12

INVESTMENT PROJECTS,

REALIZED BY SUBJECTS OF THE LAW:

CONSTRUCTION OF A NEW WORKSHOP AT THE MINERAL WATER

PRODUCTION PLANT

CONSTRUCTION OF A HOTEL COMPLEX, TRADE AND LOGISTICS CENTER

MODERNIZATION OF AN INTEGRATED GAS TREATMENT INSTALLATION

MODERNIZATION OF PLANTS FOR THE PRODUCTION OF FOOD

PACKAGING, TUBULAR PRODUCTS AND PACKAGES

13

14

DID NOT REALIZED THE PROJECT – TRANSFER OF AN EQUIVALENT AMOUNT

TO THE SPECIAL GOVERNMENT FUND

VIOLATED THE TERMS OF THE AGREEMENT – FINE AND PENALTY

RETURN OF ASSETS IN KIND

REINVESTMENT OF CAPITAL

IMPLEMENTATION OF SOCIAL PROJECTS

REPLENISHING THE REPUBLICAN BUDGET (SPECIAL GOVERNMENT FUND)

15

MAIN COMPONENTS

OF THE VOLUNTARY RETURN:

16

THE LEGALITY OF SOURCES OF ASSETS ACQUISITION IS CHECKED

A CIVIL ACTION IS INTRODUCED WHEN AN UNEXPLAINED ASSETS IS

DISCOVERED

IF THERE IS NO INTENTION TO

VOLUNTARILY RETURN THE ASSETS, THE

COMMITTEE WILL APPLY CORPORIVE

MEASURES:

THE BURDEN OF PROOF IN COURT LIES

TO THE SUBJECT OF THE LAW

FOUR CLAIMS SUBMITTED BY

COMMITTEE FOR THE AMOUNT

MILLION

Claim №1 Claim №2 Claim №3 DEFENDANT

VOLUNTARILY

RETURNED ASSETS OVERTURNED IN FAVOR

OF THE STATE

COMMITTEE’S CLAIM

WAS SATISFIED ABOUT

CONFISCATION

100% OF SHARES OF A PRIVATIZED

COMPANY

17

€28

€9,2 MILLION

Claim №4

€130 THOUSAND

OVERTURNED IN

FAVOR OF THE STATE

THE COMMITTEE SIGNED MEMORANDUMS

OF COOPERATION WITH:

NATIONAL CENTRAL BUREAU OF INTERPOL

MINISTRY OF INTERNAL AFFAIRS OF THE REPUBLIC OF KAZAKHSTAN

NATIONAL ANTI-CORRUPTION CENTER OF THE REPUBLIC OF MOLDOVA

COMMISSION FOR THE SEIZURE OF ILLEGALLY ACQUIRED PROPERTY

OF THE REPUBLIC OF BULGARIA

NEW BULGARIAN UNIVERSITY

18

TOOK PART IN MEETINGS OF INTERPOL, BAMIN, GLOBE, CARIN AND ARIN

CONTACT PERSONS IN THE NETWORKS HAVE BEEN IDENTIFIED

WITH THE SUPPORT OF FOREIGN PARTNERS, 50 EMPLOYEES OF THE

PROSECUTOR'S OFFICE OF KAZAKHSTAN WERE TRAINED

OSCE PROVIDED TECHNICAL ASSISTANCE IN IMPROVING LEGISLATION ON

ASSET RECOVERY

19 INTERACTION WITH INTERNATIONAL

ORGANIZATIONS HAS BEEN ESTABLISHED

TARGET OF

IMPLEMENTING EVENTS

20

EXCHANGE OF EXPERIENCE

IMPROVING MECHANISMS AND

WAYS TO RECOVER ASSETS

STUDYING OF STANDARDS

WE INTEND TO TAKE PART IN STRENGTHENING OF

ANTI-CORRUPTION AND ASSET RECOVERY MEASURES