Asset Recovery Watch

ARW-191
Vladimiro Montesinos (Cayman Islands)
Peru
De facto chief of intelligence and main advisor of former Peruvian President Alberto Fujimori (1990-2000)
Cayman Islands
Location of Recovery Effort, Asset Location / Alleged Asset Location
2001
Ongoing
Art.15, Art.16, Art.17, Art.18, Art.23
Yes
Actions Initiated by Foreign Jurisdiction
Letter of Request
Powers Granted to Cayman Grand Court under the Proceeds of Criminal Conduct Law
"Effective results were achieved because of the willingness on the part of the Cayman authorities, to take recourse to restrain the money itself in rem out of concern that the local laws were also being violated, instead of awaiting a judgment in personam which may never have been forthcoming because of the fugitive status of the perpetrator and which would have to be also enforced to recover the proceeds which would have no doubt taken flight within the restraint. Thus, what began simply as a letter of request to "lift the bank, financial and stock market secrecy procedures, as well as to execute a preventive attachment in the form of a restraining order" on all and any bank accounts held in Grand Cayman in the name of Vladimiro Montesinos-Torres or in the name of several other related parties; ended in the repatriation of some $44 million dollars to Peru, without a trial between the parties having to take place. This happened because in urgent response to the Judicial Request from Peru, a restraint order was obtained from the Cayman Court, freezing the bank accounts which could be identified. This afforded the Peruvian Government the time it needed to prepare and present its case for the ultimate declaration of its ownership over those accounts as containing the proceeds of the crime." (Source: Cayman Islands Government webpage on Enforcement of Judgments in Practice," posted at http://www.gov.ky/portal/page?_pageid=1142,1687439&_dad=portal&_schema=PORTAL).
Completed
Assets Returned to Victim or Requesting Jurisdiction
$44,000,000
No
N/A

According to Professor Guillermo Jorge, two sets of Montesinos-related funds were involved in the Cayman Islands: (1) Assets restrained in rem with assistance of newly created Financial Intelligence Unit; Waivers signed by account holders, pursuant to their plea bargaining agreements with Peruvian authorities. [Cayman did not have provisions for adopting provisional measures. Order of restraint could only be made where shown there were already proceedings instituted. But the Peruvian request for lifting bank secrecy and freezing assets transformed ex officio into a criminal complaint for money laundering, thereby eliminating the need to wait for an in personam judgment from Peru.] (2) Criminal complaint filed in Cayman against Wiese Sudameris International for suspicion of money laundering and freezing order in rem; financial analysis showed funds were never transferred to Cayman, but stayed in Peru; confiscation orders against funds located in Lima resulted in "repatriation" of $33 milion. (Source: Professor Guillermo Jorge, "The Peruvian efforts to recover the proceeds from Montesinos' criminal network of corruption," presented at Asian Development Bank Regional Seminar, Bali/Indonesia, September 5-7, 2007).

According to a case study by Professor Guillermo Jorge, as of September 2007, Mr. Montesinos had been convicted in 13 different trials and more than 70 trials were ongoing. (Source: Guillermo Jorge, "The Peruvian Efforts to Recover Proceeds from Montesinos's Criminal Network of Corruption," in ADB/OECD Anti-Corruption Initiative for Asia and the Pacific, Asset Recovery and Mutual Legal Assistance in Asia and the Pacific, Proceedings of the 6th Regional Seminar on Making International Anti-Corruption Standards Operational Held in Bali, Indonesia, on 5-7 September 2007 and hosted by the Corruption Eradication Commission, Indonesia, accessed at http://www.adb.org/Documents/Books/Asset-Recovery/Asset-Recovery.pdf.)

Office of the Special State Attorney for the Montesinos/Fujimori Case, Peru
Office of theSpecial State Attorney for the Montesinos/Fujimori Case, Peru
Financial Reporting Authority (CAYFIN) of the Cayman Islands
Attorney General
Grand Court