General Assembly

General Assembly Resolution #177 “Concerning Financial Fraud” (Category: Free Trade; Strength: Significant) shall be struck out and rendered null and void.

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:

1. 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;

2. 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;

3. Further, that such exhaustion also means other obligations of the perpetrator, such as child or spousal support, may also fail to be fulfilled; and

4. The said provision may also perversely incentivize 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:

1. Protection for savers and investors have been enhanced through GARs 625 and 723;

2. 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'.