By: Budi Santoso, SE. Ak. MForAccy. CA. CFE. CPA (Aust.

)
Sovereign Assest Search:
Tracing the proceeds of corruption

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 Budi Santoso
Senior Director

Budi Santoso is Senior Director in Kroll’s Business Intelligence & Investigations practice, based in the Singapore office. Budi has more than 15 years of
experience in Indonesia conducting corruption and money laundering investigations, asset tracing, litigation support, designing, implementing and
evaluating anti-fraud programs (both prevention and detection), fraud risk assessment, internal control assessment and improvement, compliance due
diligence, US FCPA & UK ABAC reviews, procurement process reviews, good corporate governance reviews. A experienced trainer, he is also capable
in leading antifraud and investigation unit transformation.

Budi has advised Northeast Asian, Western and other investors that was considering entering into business in Indonesia in order to provide a
sophisticated and focused analysis and develop a balanced picture of the executives and his reputation in business including the key risks to client
entering the sector. Budi has advised a wide range of clients, such as government institutions, state-owned and private companies ranging from oil and
gas, bank and investment, mining, infrastructure, healthcare and pharmaceutical companies, as well as law firms and regulatory authorities.

For over a decade (10 years), Budi worked for the elite Indonesian Corruption Eradication Commission (KPK), serving as as Head of the
Commissioner’s Office, Head of the Prevention Secretariat, and also as an examiner. Prior joining Kroll, Budi was a Senior Manager in the Fraud
Investigation and Disputes team at a Big Four accounting firm. In the professional community, Budi is also Director of Training for the Association of
Certified Fraud Examiner (ACFE) Indonesia Chapter and Board Member ACFE Singapore Chapter.

Budi is Certified Fraud Examiner (CFE), Chartered Accountant (CA), Certified Practicing Accountant (CPA Aust.) and Government Procurement Expert.
Budi earned Bachelor of Economics from Sebelas Maret University (Solo), Master of Forensic Accounting from University of Wollongong (Australia) and
Postgraduate Certificate in Corruption Studies, University of Hong Kong (China). He has also completed Governance & anticorruption short course from
International Law Institute, Georgetown University (USA), Integrity system short course, Malaysia Anti-Corruption Academy (Malaysia), and Police
Academy (Indonesia).
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Agenda

03 04
2 01 02 Asset Searches 05 06
General
Backgrounds Leading in ASEAN & Case Studies Challenge &
Approaches Other Potential
Practices Recipe
3 Countries

5 Suggestions

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 Tracing the proceeds of corruption on Political Leaders

Ferdinand Saddam Jean- Alberto Charles

Marcos Husein Claude Fujimori Taylor
(President (President Duvalier (President (President
of the of Iraq) (President of Peru) of Liberia)
Philippines) of Haiti)

Etc.
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 1 Backgrounds

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Why Asset Tracing?

Fraud/
Corruption

Asset
NPL
Monitoring

Asset
Tracing
• Contractual
• Inheritance Family Business • Negotiations
• Divorce Matters Disputes • Distressed Loan
• Distressed investment

Wealth
Origin

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 Indonesia context
Less than 10% stolen asset recovery rate in 2018 & 2019

https://covesia.com/news/baca/94853/agar-pengembalian-kerugian-negara-optimalkan-kpk-bentuk-satgas-tppu https://nasional.kompas.com/read/2019/04/28/15294381/icw-kerugian-negara-akibat-korupsi-pada-
2018-capai-rp-929-triliun?page=all

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Indonesia context
Perpres 55 of 2012 - National Strategy on corruption prevention & eradication
▪ Asset recovery rate as ultimate Key Performance Indicator
▪ 80% for 2015-2019 & 95% for 2019-2024

Taken from https://acch.kpk.go.id/images/ragam/makalah/pdf/labuksi/04-Evaluasi-terkait-Asset-Recovery-Kementerian-PPNBappenas.pdf

Presented by Bappenas on 21 November 2016
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Lessons learnt from other countries
FCPA Act - USA 1977
Company Sanction (USD)

Odebrecht S.A. 3,557,626,137

Airbus SE 2,091,978,881
Petroleo Brasileiro S.A. - Petrobras 1,786,673,797
Telefonaktiebolaget LM Ericsson 1,060,570,832
Telia Company AB 965,604,372
http://fcpa.stanford.edu/statistics-top-ten.html

Partial Impunity – HongKong 1977

“Reconciliation Bill” proposals – Post Arab-Spring countries

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Ideal Approach

Stolen Assets
Recovery

Asset Tracing • Proving illicit enrichment

• Assets Recovery

Investigation

Assets Tracing: locating, reviewing, analyzing

Preliminary court
Investigation Prosecution Final Verdict Execution
Investigation Examination

Assets Recovery: freezing, seizure, forfeiture

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 2 Leading Practices

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General Investigation Methodology

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 3 General Approaches

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Practical Guidance

▪ Time is very critical

▪ Keep the big picture in mind as smaller pieces of information come in
▪ Use visual aids if necessary
▪ Incorporate information into a database

▪ Follow up every loose lead as far as much as possible

▪ May lead to the discovery of more leads

▪ Consider if proxies are being used

▪ Make reasonable assumptions (no need to be 100% sure that property is linked to subject)
▪ Look for dissipation
▪ Property listings

▪ Group assets together so reader will quickly know net worth of subject
▪ Corporate assets, real property assets, personal property assets

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Methodology
Phased approach

Asset Trace Asset Trace

Further work Asset recovery
Initial phase
• Global public record sweep • In-depth human source
• Applications for disclosure
• Public record review in the enquiries- intelligence
gathering or surveillance • Evaluation of the assets
jurisdiction of the subject’s
identified
residence • Additional public record
review in jurisdictions which • Interviews and collection of
• Focus on 2 or 3
may appear newly relevant witness statements
jurisdictions which appear
most promising • Physical gathering of

• Limited human source records

enquiries

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Formal source of Information

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General approach
Review of internal documentation (from client/discovery)

▪ Not what most people associate with for asset tracing, but most useful source of information.
Only way to legitimately get access to banking information.
▪ Computer forensics
▪ Areas of focus:
Internal • Forensic accounting
spreadsheets • Individual cash flow
Emails • Keyword searches
• Potential assets from search history
Browser
• Bank account
history
• Side business
• Bank statements
Personal
• Holiday photos
documents
• Mortgage document
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General approach
External desktop research

Social media Public records Internet research

• Lifestyle (travel pattern, • Corporate affiliations • Domain ownership
holiday, residential address) • Property ownerships • Media reports
• Associated individuals and • Litigation
entities
• Proxies

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Roles of Social Media Investigation
Searching for
People & Stuff
Identify potential
properties
Mapping Travel
through
patterns and
geolocation
lifestyle
tagged on the
Fraud subject’s post
Detection

Identify potential Social Media Tracking down

fact & following
assets
Fraud
Investigation
Investigation leads

Asset Understanding
Understanding
underlying
Tracing & motive/nexus
transaction
Recovery
Identify UBO

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Online and social media research

▪ Free online open source databases (ICIJ, Open Corporates, etc)

▪ Media archives
▪ Review of social media posting to:
▪ Identify potential assets
▪ Corroborate potential ultimate beneficiary of a real estate owned by offshore entities
▪ Travel patterns and lifestyle

▪ Internet domain registration research to identify potential related entities (through the same registrant
name, telephone, email, etc)
▪ Identify potential properties through geolocation tagged on the subject’s post

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General approach
Human source queries

▪ Source queries
▪ Help to build contextual profile of the subject , especially in non-transparent countries
▪ Find leads (travel patterns etc)
▪ Tend to focus on main jurisdiction; however intelligence is not limited by country, especially for international
subjects
▪ Find out if the subject is facing financial trouble

▪ Site visits
▪ Confirm property is there
▪ Helps to identify chattel such as cars and yachts

▪ Surveillance

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Public records

▪ Extensive use of proprietary databases

▪ Official registers are repositories of information, but not easily searchable

▪ Media scan to develop leads

▪ Litigation searches to uncover personal information of a subject

▪ Property records

▪ Building links between seemingly unrelated corporate transactions

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Data analytics

▪ Combining the two large datasets into one chart to develop links

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Types of assets

▪ Real and intangible properties

▪ Financial accounts
▪ Business associations
▪ Contracts for future performance
▪ Accounts receivable
▪ Personal property (jets, yachts, luxury cars, fine art)

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Types of assets
Likelihood of finding
certain assets

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 4 Asset Searches in ASEAN & Other Potential Countries

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ASEAN
▪ Comprises numerous emerging ▪ Bank accounts not generally available
economies ▪ Property searches by name not generally available
▪ Inconsistent naming conventions and transliteration
▪ Intertwined nature of politics and business
issues:
▪ Many businesses are family-run ▪ 26 ways to spell Stewart
▪ Limitations in public records: ▪ Native speakers must look at the information
▪ Human source queries used to obtain intelligence
▪ Records are inaccurate or not
comprehensive ▪ Reverse engineer information
▪ Documents are missing or incomplete ▪ High Net Worth Individuals tend to park assets in financial
(or have been tampered with) centres / real estate:
▪ No consistency in documentation ▪ US, UK, Hong Kong, Canada, Australia and
Singapore
▪ Possible language issues
▪ Difficult to investigate:
▪ No requirement to file ▪ Suspicious of outsiders
▪ Increased personal data protection ▪ Intensely political environments
legislation ▪ Investigations involve looking at entire family
▪ Proxies commonly used
▪ Cases often multiple jurisdictions, including “off-shore”
jurisdictions
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Other Countries Australia
• research on corporate records (directorship & shareholdings)
• property ownership searches

• research on corporate records (directorship & shareholdings)

New Zealand • property ownership searches

• research on corporate records (directorship)

Taiwan • Intellectual property ownership

• research on corporate records (directorship)

China (PRC) • Intellectual property ownership

• research on corporate records (directorship), property ownership

Hong Kong searches, Intellectual property ownership, High-end members Club

• research on corporate records (directorship & shareholdings)

United Kingdom • property ownership searches

• research on corporate records (directorship & shareholdings),

United States property ownership searches, Automobile ownership

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 5 Case studies

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 Case Studies
Retained to carry out investigation into IDR 400 billion fraud case:
▪ Circumstances on hack event
▪ Identity of the individual involved
▪ Movement of the cryptocurrency
▪ Location of the cryptocurrency stolen

Output:
▪ Distributed across various wallets & long transaction
▪ The end wallets user name = A, phone number = B
▪ Facebook account = location

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Looking for Mr Mata – Mr Nice Guy

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 6 Challenge & Recipe

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 Challenges & Recipe

Subscriptions to fully
comprehensive set of global
Deep & Crypto
Dark Web Currency databases

Access to corporate data, litigation

records, media information,
Casino “Time Share” international compliance watch-
lists and more

Money Trade-based Network of sources, experts, and

Launderer Money investigation specialists providing
Service Laundering
unique expertise in specific
industries and geographies

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 Thank you

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