Open-ended Intergubermental Working Group on Prevention

“THE FINANCIAL DISCLOSURE STATEMENTS SYSTEM

IN ARGENTINA”

Laura GelerTransparency Policies DepartmentAnti-Corruption Office – Argentina

Viena, Austria – Monday, Aug 27 – 2012

September 1999Law 21.188 – Ethics in Public FunctionChapter IIII – Public Officials DisclosuresChapter V – Conflicts of Interest

ENFORCEMENT AUTHORITY

Executive Branch Anti-Corruption Office

Ministry of Justice, Security and Human Rights

Judicial Branch Supreme Court and Judiciary Committee

Legislative Branch Congress

To monitor and control assets of public officials

To detect and prevent conflict of interests

Purpose of FDS

ARTICLE 4 — All the persons mentioned in article 5 of this law,must submit a comprehensive financial disclosure statementwithin thirty business days as from the day of assuming theirposts. Besides, they must annually update the informationincluded in such statement and submit one last statementwithin thirty business days after the cease in their posts.

FDS - Relevants Aspects

FDS - Relevants Aspects•Non Compliance 1: Notification•Non Compliance 2: Serious misconduct (disciplinary punishment)•Non Compliance 3: Penal Code - Article 268 (3)Article 268 (3): Jailing from fifteen days to two years and special disqualificationfor life shall be applied to any person who, being compelled by reason of his officeto present a financial disclosure statement, maliciously fails to do so.The crime shall be configured when, upon any reliable notice of the respectivedemand, the required official does not comply with the above mentionedobligation within the time periods set forth by the applicable law.The same punishment shall be applied to any person who maliciously distorts orfails to insert any facts that the above-mentioned statements must include inaccordance with the applicable laws and regulations.

OBLIGATION TO SUBMIT FDS:

Highest authorities of all Branches of Federal Government (President, VicePresident, Chief of Cabinet of Ministries, Secretaries, Under Secretaries)

Highest authorities of Armed Forces and Security Forces (Police)

Ambassadors, consuls and officers with a permanent official mission abroad

Officers or employees with a rank or function not lower than that of a Directoror equivalent

All public official who has to manage private or public funds, or controlling oroversee public incomes

Job

Task

ARTICLE 6: The financial disclosure statement shall include a detailed list ofall the assets

Inside the country or abroad,Owned by:

- the public official- his spouse- the community property (marriage)- the person with whom he has a “de facto” matrimonial relation,- the assets of such “de facto” relation- minor childs

FDS Contents

a) Real Estate property and the improvements made on such property;b) Personal property subject to registration;c) Other personal property, determining their collective value. If any item of such personalproperty exceeds the amount of five thousand pesos (AR$5000) the item must be individualized;d) Capital invested in bonds, shares and other securities whether they be marketable or not onthe stock Exchange, or in the running of personal or company’s business;e) Bank deposits amounts, or amounts deposited in other financial entities, whether they besavings or provisional deposits, national or foreign, cash in national or foreign currency.f) Credits and mortgage debts, pledge debts or common debts;g) Annual income and expenses derived from work under an employment contract or from theexercise of professional or independent activities;h) Annual income and expenses derived from revenue or social security systems.i) In subparagraphs a) b) c) and d) of this article, the official must also include the value and dateof acquisition, and the origin of the funds used for such acquisitions.

FDS Contents - PUBLIC

In a closed wax-sealed envelop the official must indicate:

The name of the bank or the pertinent financial entity and the numbers of checkingaccounts, saving accounts, security boxes and credit cards and their respectiveextensions, if any.

Exact location of Real Estate properties.

If the person who must submit the financial disclosure statement is registered underthe income tax regime or the regime of personal property not incorporated to theeconomic process, such official must also present the last presentation submitted

before the Tax Authority.

Such envelop shall be kept confidential and it can only be delivered upon the request of theauthority mentioned in article 19 or the judicial authority

FDS Contents - PRIVATE

Accountability and Transparency

List of FDS accomplishing / not accomplishingPublic Officials on the Web.

Any person have access to and obtain a copy ofpublic part of FDS.

Submission of a written request containing:a) First name and last name, identity document number, occupation and address ofrequesting party;b) First name and last name, identity document number, occupation and address ofany other person or entity on whose behalf the statement is requested;c) The purpose of the request and use of the petition;d) The statement by which the requesting person represents to have knowledge ofthe provisions set forth by article 11 of this law regarding the unlawful use of thefinancial disclosure statement and the punishment applicable should the requestingparty make an unlawful use of such statement.

It was based on paper forms Too many people required simply to organize the information The ratio of error was very high Large number of rejections because of formal errors It did not allow an easy cross check with other sources of

information Civil society and the press did not have easy access The people involved in organizing the forms had no time for

substantial analysis It was very expensive

What were the problems with the old FDS System?(1997 – 1999)

By creating and implementing asoftware to run a computerized FDSSystem

How did we try to solve these problems?

Friendly software

Computerized centralization / Operative decentralization

Files (FDS) send through Internet

High security on access and communications

Central data base with automated controls

FDS System main features

Very low rejection ratio (and for substantial issues) Higher level of compliance (93% / 99%) Improved access to FDS forms: requests via Internet Drastic reduction of operative costs Increased capacity to analyze and investigate (with better results) Significant reduction of paper work More access for all people

What is the added value of the software for FDS?

Leading Roles of the System

Public Officials obliged to submit FDS

Human Resources Departments of all areas of the Government (ExecutiveBranch)

Finantial Disclosures Statements Unit/ Transparency Policies Department/Anti-Corruption Office

ENFORCEMENT AUTHORITY

Executive Branch Anti-Corruption Office

Transparency PoliciesDepartment

InvestigationsDepartment

Financial Disclosures Statements Unit

Executive Branch: 36.000 filers

HumanResources

Dept.

HumanResources

Dept.

HumanResources

Dept.

HumanResources

Dept.190 Human Resources Depts.

FDS System

1) OANET FDS System

FDS System

2) Data Base “Universo deObligados”

FDS System

3) Data Base “DeclaracionesJuradas”

FDS System

4) Analysis Tools

FDS System

5) Web site

www.anticorrupcion.gov.ar / publicaciones de la OA

“Stolen Asset Recovery.Income and Asset Declarations:Tools and Trade-offs”November 2009

The World Bank and the United Nations Office of Drugs and Crimes (UNODC).Stolen Asset Recovery (StAR) Initiative

http://siteresources.worldbank.org/EXTSARI/Resources/5570284-1257172052492/ADincomeasset.pdf?resourceurlname=ADincomeasset.pdf

THANK YOU VERY MUCH

Laura GelerTransparency Policies DepartmentAnti-Corruption Office – Argentina

lgeler@jus.gov.ar

Anti-Corruption Office of Argentina: www.anticorrupcion.gov.ar