A/HRC/22/42 23. In order to enhance efforts to tackle the problem of illicit financial flows, it is critical that the international financial system is made more transparent and that countries of origin and countries of destination improve their cooperation in the fight against these flows. Making the global financial system more transparent requires fundamental reforms. III. Current initiatives to curb illicit financial flows 24. There are a number of legal instruments and initiatives at the international, regional and national levels to address the issue of illicit financial flows, mostly resulting from corruption. Most of the conventions discussed below require the contracting parties to criminalize activities undertaken to hide or launder the proceeds of corruption and envisage measures to confiscate such proceeds. A. Multilateral initiatives 25. The United Nations has been involved in combating the transfer of illicit funds derived from corruption for many years. 36 The topic was extensively discussed during the drafting of the United Nations Convention against Corruption. 37 The Convention, which has been ratified by 165 States (as of 18 February 2012) and sets a comprehensive point of reference for anti-corruption laws, institutions and actions of States parties, recognizes the return of illicit funds as a fundamental principle. Article 57, paragraph 3 (a), requires that the requested State party shall: “In the case of embezzlement of public funds or of laundering of embezzled public funds … return the confiscated property to the requesting State Party.” The same also applies to proceeds of crimes covered by the Convention. Article 52, paragraph 1, enjoins each State party to: “Take such measures as may be necessary, in accordance with its domestic law, to require financial institutions within its jurisdiction … to conduct enhanced scrutiny of accounts sought or maintained by or on behalf of individuals who are, or have been, entrusted with prominent public functions and their family members and close associates. Such enhanced scrutiny shall be reasonably design to detect suspicious transactions for the purpose of reporting to competent authorities.” 26. In its resolution 1/4, the Conference of States Parties to the Convention set up the Open-ended Intergovernmental Working Group on Asset Recovery to assist the Conference in the implementation of its mandate relating to the return of the proceeds of corruption. One of its tasks is to assist in the development of cumulative knowledge in the area of asset recovery, including through mechanisms for locating, freezing, seizing, confiscating and returning the instruments and proceeds of corruption; identifying capacity-building needs and encouraging cooperation among relevant existing bilateral or multilateral initiatives; facilitating the exchange of information, good practices and ideas among States; and 36 37 See, e.g., General Assembly resolutions 55/61, 55/188, 56/186, 57/244, 65/169 and Economic and Social Council resolution 2001/13. See also the reports by the Secretary-General on preventing and combating corrupt practices and transfer of assets of illicit origin and returning such assets, in particular to the countries of origin, consistent with the United Nations Convention against Corruption, A/65/90 and A/67/96. See the global study on the transfer of funds of illicit origin, especially funds derived from acts of corruption, A/AC.261/12. 11