[GA—AT VOTE—FOR] Repeal: "Concerning Financial Fraud"

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The World Assembly (WA),

Acknowledging the noble intent of GA177 to combat financial fraud;

Concerned however, that a key operative clause of GA177 states that WA members shall ensure that “all victims of fraud shall receive compensation for their loss equal to or greater than the value of the loss and that this compensation shall be derived from the fiscal and/or material assets of the perpetrator of the act of financial fraud which resulted in the loss”;

Believing that this requirement has highly undesirable consequences in some circumstances, namely that in the absence of WA laws to the contrary:

• The wording “ensure… equal to or greater than the value of the loss… and shall be derived from the fiscal and / or material assets of the perpetrator” increases the likelihood that the said assets may be exhausted by the need to pay compensation;
• That such exhaustion may result in victims of other more serious crimes by the same perpetrator, in the absence of other legislation, such as rape, rioting, or treason, to receive no compensation as a result;
• Further, that such exhaustion also means other obligations of the perpetrator, such as child or spousal support, may also fail to be fulfilled; and
• The said provision may also perversely incentivise an individual who is accused (but not yet convicted) of the said offence to waste their assets on hedonistic lifestyle choices while on bail, if such individuals are convicted that they would be found guilty of the said offence and do not have adequate assets to pay out as compensation;

Further noting, since the passage of this resolution:

• Protection for savers and investors have been enhanced through GARs 625 and 723;
• Tort law reforms have been in place through GARs 447 and 515;

Believing that, in many cases, a reasonable judicial process in a WA state can determine compensation for victims and the sources of such funds properly (such as from the assets of the perpetrator(s), as well as any co-conspirators), and without additional guidance from the WA, and that the WA should carefully consider if a replacement is necessary;

Hereby repeals the target resolution, 'Concerning Financial Fraud'.

Click to expand...

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Note: Only votes from TNP WA nations, NPA personnel, and those on NPA deployments will be counted. If you do not meet these requirements, please add (non-WA) or something of that effect to your vote. If you are on an NPA deployment without being formally registered as an NPA member, name your deployed nation in your vote.

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Voting Instructions:

• Vote For if you want the Delegate to vote For the resolution.
• Vote Against if you want the Delegate to vote Against the resolution.
• Vote Abstain if you want the Delegate to abstain from voting on this resolution.
• Vote Present if you are personally abstaining from this vote.

Detailed opinions with your vote are appreciated and encouraged!

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Overview
This proposal seeks to repeal GA177, which aims to ensure compensation for victims of financial fraud. While the intent to protect victims is commendable, the proposal highlights the problematic implications of mandating compensation derived solely from the perpetrator's assets, potentially leading to unintended consequences that can adversely affect the victims of more serious crimes.

Recommendation
The Ministry acknowledges the importance of addressing financial fraud and protecting victims, but the stipulations within GA177 present significant risks. The requirement that compensation must come from the perpetrator's assets increases the likelihood that such assets may be depleted, leaving victims of more severe crimes without recourse. This approach undermines the judicial process, which should appropriately assess compensation based on the circumstances of each case.

Moreover, the potential for this resolution to create an environment where accused individuals might deplete their assets for personal gain while awaiting trial raises ethical concerns. Additionally, the recognition of previous GARs that enhance protections for savers and investors suggests that there are already measures in place to address these issues effectively.

For these reasons, the Ministry of World Assembly Affairs recommends a vote FOR Repeal: "Concerning Financial Fraud".

This IFV Recommendation was written by Terre des Riches in collaboration with the Ministry of World Assembly Affairs.

[Non-WA]

Seems fairly obvious to me this should be repealed given the "further noting" lines, even if I think a lot of arguments here are a massive stretch. For.

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Repeal "Concerning Financial Fraud" was passed 8,095 votes to 3,177.