LLM dissertation E-book.pdf

PRITAM GHOSH

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³*OREDO:DURQ7HUURU´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´PXUGHUDQGPDOWUHDWPHQWµ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´/DZRI :DURQ/DQGµ3DUW,,,RIWKH0DQXDORI0LOLWDU\/DZ /RQGRQ:DU2IILFH S3DUD <DVPLQ1DTYL´'RXEWIXO3ULVRQHURI:DU6WDWXVµ,QWHUQDWLRQDO5HYLHZRI5HG&URVV1R 6HSWHPEHU SS 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD WKH FRQWH[W RI WKH DIWHUPDWK RI WKH WZR ZRUOG ZDUV 3RVW 0DMRU ZDUV WKDW KDYHEHHQIRXJKWWLOOGDWHDUH 7KH.DVKPLU:DURI 7KH6LQR,QGLDQ:DURI 7KH6HFRQG.DVKPLU:DURI 7KH%DQJODGHVK,QGHSHQGHQFH:DURI 7KH.DUJLO:DURI $PRQJWKHVHWKHZDUVRIDQG·DUHLQVLJQLILFDQWLQWHUPVRIDUPHGIRUFHV SHUVRQQHO FDSWXUHG E\ ERWK SDUWLFLSDWLQJ VLGHV 7KHUHIRUH WKH EDWWOHV RI · · DQG·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¶7RUWXUH·LQLQWHUQDWLRQDODQGUHJLRQDOLQVWUXPHQWV 7KH GHILQLWLRQV RI WRUWXUH DQG RWKHU FUXHO LQKXPDQ RU GHJUDGLQJ WUHDWPHQWRUSXQLVKPHQWDVJLYHQLQ,QWHUQDWLRQDODQGUHJLRQDOLQVWUXPHQWVVKRZD FRQVLVWHQW SDWWHUQ LQ WKH PDQQHU LQ ZKLFK WKH\ KDYH EHHQ GUDIWHG 0RVW RI WKH GHILQLWLRQVVKRZDWHQGHQF\WRIROORZWKHRQHJLYHQLQWKH817RUWXUH&RQYHQWLRQ ,WLVDOVRQRWHZRUWK\WKDWWKHGHILQLWLRQJLYHQLQWKHWRUWXUH FRQYHQWLRQLVDJDLQD FRQVROLGDWLRQ RI DOO WKH YHUVLRQV IRXQG LQ WKH HDUOLHU LQVWUXPHQWV 7KXV WKHVH GHILQLWLRQVFDQEHEULHIO\HQXPHUDWHGDVIROORZV 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD ,QWHUQDWLRQDO&RYHQDQWRQ&LYLODQG3ROLWLFDO5LJKWV $UWLFOH 1RRQHVKDOOEHVXEMHFWHGWRWRUWXUHRUWRFUXHOLQKXPDQRUGHJUDGLQJWUHDWPHQWRU SXQLVKPHQW ,Q SDUWLFXODU QR RQH VKDOO EH VXEMHFWHG ZLWKRXW KLV IUHH FRQVHQW WR PHGLFDORUVFLHQWLILFH[SHULPHQWDWLRQ &RQYHQWLRQ DJDLQVW 7RUWXUH DQG 2WKHU &UXHO ,QKXPDQ RU 'HJUDGLQJ 7UHDWPHQWRU3XQLVKPHQW $UWLFOH )RUWKHSXUSRVHVRIWKLV&RQYHQWLRQWKHWHUPWRUWXUHPHDQVDQ\DFWE\ZKLFK VHYHUHSDLQRUVXIIHULQJZKHWKHUSK\VLFDORUPHQWDOLVLQWHQWLRQDOO\LQIOLFWHGRQ DSHUVRQIRUVXFKSXUSRVHVDVREWDLQLQJIURPKLPRUDWKLUGSHUVRQLQIRUPDWLRQ RUDFRQIHVVLRQSXQLVKLQJKLPIRUDQDFWKHRUDWKLUGSHUVRQKDVFRPPLWWHGRU LV VXVSHFWHG RI KDYLQJ FRPPLWWHG RU LQWLPLGDWLQJ RU FRHUFLQJ KLP RU D WKLUG SHUVRQRUIRUDQ\UHDVRQEDVHGRQGLVFULPLQDWLRQRIDQ\NLQGZKHQVXFKSDLQ RU VXIIHULQJ LV LQIOLFWHG E\ RU DW WKH LQVWLJDWLRQ RI RU ZLWK WKH FRQVHQW RU DFTXLHVFHQFHRIDSXEOLFRIILFLDORURWKHUSHUVRQDFWLQJLQDQRIILFLDOFDSDFLW\,W GRHVQRWLQFOXGHSDLQRUVXIIHULQJDULVLQJRQO\IURPLQKHUHQWLQRULQFLGHQWDOWR ODZIXOVDQFWLRQV $GRSWHGDQGRSHQHGIRUVLJQDWXUHUDWLILFDWLRQDQGDFFHVVLRQE\*HQHUDO$VVHPEO\UHVROXWLRQ$ ;;, RI 'HFHPEHU(QWU\LQWRIRUFH0DUFK $GRSWHGDQGRSHQHGIRUVLJQDWXUHUDWLILFDWLRQDQGDFFHVVLRQE\*HQHUDO$VVHPEO\UHVROXWLRQRI 'HFHPEHU(QWU\LQWRIRUFH-XQH 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD 7KLV DUWLFOH LV ZLWKRXW SUHMXGLFH WR DQ\ LQWHUQDWLRQDO LQVWUXPHQW RU QDWLRQDO OHJLVODWLRQZKLFKGRHVRUPD\FRQWDLQSURYLVLRQVRIZLGHUDSSOLFDWLRQ (XURSHDQ&RQYHQWLRQIRUWKH3URWHFWLRQRI+XPDQ5LJKWVDQG)XQGDPHQWDO )UHHGRPV $UWLFOH 1R RQH VKDOO EH VXEMHFWHG WR WRUWXUH RU WR LQKXPDQ RU GHJUDGLQJ WUHDWPHQW RU SXQLVKPHQW (XURSHDQ &RQYHQWLRQ IRU WKH 3UHYHQWLRQ RI 7RUWXUH DQG ,QKXPDQ RU 'HJUDGLQJ7UHDWPHQWRU3XQLVKPHQW 7KH SURYLVLRQV RIWKH (XURSHDQ &RQYHQWLRQRQ +XPDQ 5LJKWV ZHUH VWUHQJWKHQHG E\WKLVWUHDW\,WDOVRFUHDWHVD&RPPLWWHHIRUWKH3UHYHQWLRQRI7RUWXUH $PHULFDQ&RQYHQWLRQRQ+XPDQ5LJKWV 3DFWRI6DQ-RVp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« LL 7RUWXUHRULQKXPDQWUHDWPHQWLQFOXGLQJELRORJLFDOH[SHULPHQWV « E 2WKHUVHULRXVYLRODWLRQVRIWKHODZVDQGFXVWRPVDSSOLFDEOHLQLQWHUQDWLRQDO DUPHG FRQIOLFW ZLWKLQ WKH HVWDEOLVKHG IUDPHZRUN RI LQWHUQDWLRQDO ODZ QDPHO\DQ\RIWKHIROORZLQJDFWV « [[L &RPPLWWLQJ RXWUDJHV XSRQ SHUVRQDO GLJQLW\ LQ SDUWLFXODU KXPLOLDWLQJDQGGHJUDGLQJWUHDWPHQW « F ,Q WKH FDVH RI DQ DUPHG FRQIOLFW QRW RI DQ LQWHUQDWLRQDO FKDUDFWHU VHULRXV YLRODWLRQVRIDUWLFOHFRPPRQWRWKHIRXU*HQHYD&RQYHQWLRQVRI$XJXVW QDPHO\DQ\RIWKHIROORZLQJDFWVFRPPLWWHGDJDLQVWSHUVRQVWDNLQJQR DFWLYH SDUW LQ WKH KRVWLOLWLHV LQFOXGLQJ PHPEHUV RI DUPHG IRUFHV ZKR KDYH ODLG GRZQ WKHLU DUPV DQG WKRVH SODFHG KRUV GH FRPEDW E\ VLFNQHVV ZRXQGVGHWHQWLRQRUDQ\RWKHUFDXVH « L 9LROHQFH WR OLIH DQG SHUVRQ LQ SDUWLFXODU PXUGHU RI DOO NLQGV PXWLODWLRQFUXHOWUHDWPHQWDQGWRUWXUH LL &RPPLWWLQJ RXWUDJHV XSRQ SHUVRQDO GLJQLW\ LQ SDUWLFXODU KXPLOLDWLQJDQGGHJUDGLQJWUHDWPHQW «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´1RQ5HIRXOHPHQW´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´1HLWKHUSK\VLFDORUPHQWDOWRUWXUHQRUDQ\RWKHUIRUPRIFRHUFLRQPD\EHLQIOLFWHGRQ 3ULVRQHUVRI:DUWRVHFXUHIURPWKHPLQIRUPDWLRQRIDQ\NLQGZKDWHYHU3ULVRQHUVRI:DUZKRUHIXVHWRDQVZHUPD\ QRWEHWKUHDWHQHGLQVXOWHGRUH[SRVHGWRDQ\XQSOHDVDQWRUGLVDGYDQWDJHRXVWUHDWPHQWRIDQ\NLQGµ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´3ULVRQHURI:DUµ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´'HWDLQHHµ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´WKHJUDYHVWFRQVHTXHQFHVµ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´1RRQHVKDOOEHVXEMHFWHG WR7RUWXUHRULQKXPDQRUGHJUDGLQJWUHDWPHQWRUSXQLVKPHQWµ$QHVVHQWLDOIHDWXUH 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD RI $UW LV WKDW LW LV QRQGHURJDEOH LQ QR FLUFXPVWDQFH FDQ WRUWXUH RU FUXHO DQG LQKXPDQWUHDWPHQWEHWROHUDWHGRUH[FXVHGIRUDQ\UHDVRQ%DVHGRQWKHKHDULQJV DQGLQYHVWLJDWLRQVE\WKH6XE&RPPLVVLRQWRWKH(XURSHDQ&RPPLVVLRQWKH&RXUW FRQFOXGHGWKDW*UHHN6HFXULW\RIILFLDOVKDGLQIOLFWHGWRUWXUHDQGLOOWUHDWPHQWRQ VHYHUDO LQGLYLGXDOV LQ WKHLU FXVWRG\ SDUWLFXODUO\ WKURXJK WKH DSSOLFDWLRQ RI ´)$/$1*$´ RU VHYHUH EHDWLQJ RI DOO SDUWV RI WKH ERG\ 7KH &RPPLVVLRQ IRXQG WKDWWKHSXUSRVHRIWKHWRUWXUHKDGEHHQ´7KHH[WUDFWLRQRILQIRUPDWLRQLQFOXGLQJ FRQIHVVLRQV FRQFHUQLQJ WKHSROLWLFDO DFWLYLWLHV DQG DVVRFLDWLRQVRIWKH YLFWLPV DQG RWKHUSHUVRQVFRQVLGHUHGWREHVXEYHUVLYH$UPHG2SSRVLWLRQ*URXSV $2*V 7KH *UHHN *RYHUQPHQW KDG GLUHFWO\ DQG LQGLUHFWO\ SUHYHQWHG WKH (XURSHDQ&RPPLVVLRQIURPFRPSOHWLQJLWVLQYHVWLJDWLRQRIWKLVFDVH8SRQWKHVH ILQGLQJV DQG EDVHG RQ WKH *UHHN *RYHUQPHQW·V GHQXQFLDWLRQ RI ERWK WKH LQYHVWLJDWLRQ UHSRUW DQG WKH (XURSHDQ &RQYHQWLRQ WKH (XURSHDQ &RPPLVVLRQ IRUFHG*UHHFHRXWRIWKH&RXQFLORI(XURSHIRU+XPDQ5LJKWVYLRODWLRQVLVRODWLQJ *UHHFHIURPWKH,QWHUQDWLRQDOFRPPXQLW\ 7\UHUYV8. ,Q WKLV FDVH WKH (XURSHDQ &RXUW RI +XPDQ 5LJKWV GLVWLQJXLVKHG EHWZHHQ WRUWXUH DQGLQKXPDQWUHDWPHQWZKLFKZDVIROORZHGLQODWHUFDVHVDVZHOO7KH&RXUWVDLG WKDW7RUWXUHFDQEHGHVFULEHGDVDPXFKPRUH´DJJUDYDWHGDQGGHOLEHUDWH´IRUPRI FUXHODQGLQKXPDQWUHDWPHQW,QRWKHUZRUGVZKDWWKH&RXUWWULHGWRH[SODLQZDV 7KH(XURSHDQ&RPPLVVLRQRI+XPDQ5LJKWVLVDQLQYHVWLJDWLYHERG\ZKLFKUHIHUVFDVHVWRWKH(XURSHDQ&RXUWRI +XPDQ 5LJKWV D UHJLRQDO FRXUW ZKRVH GHFLVLRQV DUH ELQGLQJ RQ LWV PHPEHU VWDWHV %RWK DUH JRYHUQHG E\ WKH (XURSHDQ&RQYHQWLRQRQ+XPDQ5LJKWV 7KH*UHHN&DVH<%(XU&RQYRQ+5 YLD(&+5:HEVLWHKWWSZZZHFKUFRHLQWDFFHVVHG 0DUFK 7\UHUYV8.(XU&W+5 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD WKDW LQ DOO FDVHV WKH WUHDWPHQW PHWHG RXW WR WKH GHWDLQHHV PD\ QRW UHDFK VXFK H[WUHPH VWDQGDUGV IRU LW WR EH ODEHOHG DV WRUWXUH 7KHUHIRUH WKH FULWHULD WR GLVWLQJXLVK EHWZHHQ ´7RUWXUHµ DQG ´2WKHU IRUPV RI FUXHO WUHDWPHQWµ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´+LJK /HYHOµ %ULWLVK 2IILFLDOV YLRODWHG $UW RI WKH (XURSHDQ &RQYHQWLRQ ZKLFK SURYLGHV WKDW ´1R RQH VKDOO EH VXEMHFWHG WR WRUWXUH RU WR LQKXPDQRUGHJUDGLQJWUHDWPHQWRUSXQLVKPHQWµ$FFRUGLQJWRWKH(&+5WKHVH ILYH LQWHUURJDWLRQ WHFKQLTXHV ZKLFK ZHUH XVHG ERWK LQGLYLGXDOO\ DQG LQ FRPELQDWLRQLQFOXGHG :DOO6WDQGLQJ)RUFLQJWKHGHWDLQHHVWRUHPDLQIRUSHULRGVRIVRPHKRXUVLQ D´VWUHVVIXOSRVLWLRQµ ,UHODQGYV8QLWHG.LQJGRP YLD(&+5:HEVLWHKWWSKXGRFHFKUFRHLQW+XGRFGRF+(-8'VLIWW[W DFFHVVHG)HEUXDU\ 0LFKDHO-RKQ*DUFLD´81&RQYHQWLRQVDJDLQVW7RUWXUH &$7 2YHUYLHZDQG$SSOLFDWLRQWR,QWHUURJDWLRQ 7HFKQLTXHVµ&RQJUHVVLRQDO5HVHDUFK6HUYLFH5HSRUWVIRU&RQJUHVV :DVKLQJWRQ'&&56/LEUDU\ 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD +RRGLQJ 3XWWLQJ D EODFN RU QDY\FRORXUHG EDJ RYHU WKH GHWDLQHHV· KHDGV DQGIRUFLQJWKHPWRNHHSLWRQDOOWKHWLPH 6XEMHFWLQJWKH'HWDLQHHVWRORXGQRLVHWKDWKDGWKHSRWHQWLDOWRFDXVHKHDULQJ LPSDLUPHQW 'HSULYDWLRQRI6OHHS 'HSULYDWLRQRI)RRGDQG'ULQN $QLQYHVWLJDWLRQE\WKH(XURSHDQ&RPPLVVLRQRI+XPDQ5LJKWVFRQFOXGHGWKDWQR SK\VLFDOLQMXU\UHVXOWHGIURPWKHXVHRIWKHVHWHFKQLTXHVWKRXJKFHUWDLQGHWDLQHHV VXIIHUHG ZHLJKW ORVV DQG DGYHUVH HIIHFWV XSRQ WKHLU ´DFXWH SV\FKLDWULF V\VWHPVµ GXULQJ LQWHUURJDWLRQ 7KH (&+5 FRQFOXGHG WKDW WKH LQWHUURJDWLRQ WHFKQLTXHV HPSOR\HG E\ %ULWDLQ YLRODWHG WKH (XURSHDQ &RQYHQWLRQ·V SURKLELWLRQ XSRQ ´LQKXPDQRUGHJUDGLQJWUHDWPHQWµEXWIRXQGWKDWWKHLQWHUURJDWLRQWHFKQLTXHVGLG QRWFRQVWLWXWH´WRUWXUHµ 7KH (&+5 VWDWHG WKDW D GLVWLQFWLRQ H[LVWV EHWZHHQ LQKXPDQ RU GHJUDGLQJ WUHDWPHQW DQG WRUWXUH D ´GLVWLQFWLRQ WKDW GHULYHV SULQFLSDOO\ IURP D GLIIHUHQFH LQ WKHLQWHQVLW\RIWKHVXIIHULQJLQIOLFWHGµ7KH(&+5FRQFOXGHGWKDWZKLOHWKHILYH LQWHUURJDWLRQ WHFKQLTXHV DW OHDVW ZKHQ XVHG LQ FRPELQDWLRQ ZHUH LQKXPDQ RU GHJUDGLQJWUHDWPHQW´WKH\GLGQRWRFFDVLRQVXIIHULQJRIWKHSDUWLFXODULQWHQVLW\DQG FUXHOW\LPSOLHGE\WKHZRUGWRUWXUHDVVRXQGHUVWRRGµ7KH(&+5GLGQRWRIIHUDQ LQGHSWK DQDO\VLV DV WR ZK\ WKHVH WHFKQLTXHV GLG QRW FDXVH VXIILFLHQW VXIIHULQJ WR FRQVWLWXWHWRUWXUHDOWKRXJKLWVKRXOGEHQRWHGWKDWLWDSSHDUHGWKDWIHZLIDQ\RI WKH SHUVRQV ZKR ZHUH VXEMHFW WR WKH LQWHUURJDWLRQ WHFKQLTXHV VXVWDLQHG ODVWLQJ GHELOLWDWLQJ SK\VLFDO RU PHQWDO LQMXULHV ,W GLG QRWH KRZHYHU WKDW LWV LQTXLU\ UHTXLUHGDQHYDOXDWLRQRI´DOOWKHFLUFXPVWDQFHVRIWKHFDVHVXFKDVWKHGXUDWLRQRI ,ELG 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD WKH WUHDWPHQW LWV SK\VLFDO RU PHQWDO HIIHFWV DQG LQ VRPH FDVHV WKH VH[ DJH DQG VWDWH RI KHDOWK RI WKH YLFWLPµ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·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´:KHUHDQLQGLYLGXDOLVWDNHQLQWRFXVWRG\LQJRRG KHDOWKEXWLVIRXQGWREHLQMXUHGDWWKHWLPHRIUHOHDVHLWLVLQFXPEHQWRQWKH6WDWH WRSURYLGHDSODXVLEOHH[SODQDWLRQDVWRWKHFDXVLQJRIWKHLQMXU\IDLOLQJZKLFKD FOHDUFDVHRIYLRODWLRQDULVHVZLWKUHJDUGWR$UWRIWKH(XURSHDQ&RQYHQWLRQ´ 6HOPRXQLYV)UDQFH 7KH &RXUW IRXQG WKDW 0U 6HOPRXQL KDG EHHQ EHDWHQ VRGRPL]HG DQG WKUHDWHQHG ZKLOHKHZDVEHLQJKHOGLQFXVWRG\7KH&RXUWUHMHFWHGWKH)UHQFK*RYHUQPHQW·V DUJXPHQWWKDW0U6HOPRXQLZDVLQHOLJLEOHEHFDXVHKHKDGQRWH[KDXVWHGGRPHVWLF UHPHGLHV ,W QRWHG WKDW WKH PHGLFDO FHUWLILFDWHV DQG UHSRUWV VXIILFLHQWO\ FRQYLQFHG WKH (XURSHDQ &RPPLVVLRQ RI WKH FUHGLELOLW\ RI WKH DSSOLFDQW·V DOOHJDWLRQV FRQFHUQLQJ WKH ODUJH QXPEHU RI EORZV WKDW KH UHFHLYHG DQG WKHLU LQWHQVLW\ 7KH &RXUWWKHUHIRUHIRXQG0U6HOPRXQL·VDSSOLFDWLRQDGPLVVLEOHDQGIRXQGYLRODWLRQV RI$UW6HFDVZHOODV$UW 7KH&RXUWDSSOLHGWKHJXLGLQJSULQFLSOHHVWDEOLVKHGLQWKH7RPDVLDQG WKH5LELWVFKFDVHV7KHJXLGLQJSULQFLSOHZDVUHLWHUDWHGE\WKH&RXUWDVODLGGRZQ LQWKH$NVR\&DVH(YHQWKRXJKWKH&RXUWGLVWLQJXLVKHGEHWZHHQWRUWXUHDQGLOO ,ELG 6HOPRXQLYV)UDQFH (XU&W+5YLD(&+5:HEVLWHDFFHVVHG0DUFK 7RPDVLYV)UDQFH (XU&W+5YLD(&+5:HEVLWHDFFHVVHG0D\ 5LELWVFKYV$XVWULD (XU&W+5YLD(&+5:HEVLWHDFFHVVHG0D\ 6XSUDQ 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD WUHDWPHQWLWUHIUDLQHGIURPOD\LQJGRZQDSDUWLFXODUVHWRIFULWHULDIRUWKHVHYHULW\ UHTXLUHPHQWRUFUHDWLQJDOLVWRIDFWVZKLFKZRXOGDOZD\VEHFRQVLGHUHG7RUWXUH RU VSHFLI\LQJ WKH HYLGHQFH QHFHVVDU\ WR SURYH HLWKHU RQH RI WKH WZR ,W VDLG WKDW ZKDWFRQVWLWXWHV7RUWXUHDQGLQKXPDQWUHDWPHQWZLOOEHGHSHQGHQWRQWKHIDFWVDQG FLUFXPVWDQFHVRIHDFKFDVH 7KLVOHIWHQRXJKURRPIRUMXGLFLDOERGLHVWRDSSO\WKHLURZQSULQFLSOHVIRU WKHLQWHUSUHWDWLRQRIWKHWHUPVWRUWXUHDQG&,'732SHQHQGHGMXGJPHQWVOLNHWKH $NVR\FDVHDQGWKHSUHVHQWFDVHQRWRQO\DGGWRWKHH[LVWLQJMXULVSUXGHQFHEXWDOVR SDYHWKHZD\IRUWKHHYROXWLRQRIQHZSULQFLSOHVLQIXWXUHFDVHV 7KH&DVHRI$EX2PDU,WDO\ ,Q(XURSHSHUKDSVWKHPRVWSURPLQHQWFDVHRIUHQGLWLRQWRWRUWXUHLVWKDWRI+DVDQ 2VDPD1DVU $EX2PDU $OOHJHGO\NLGQDSSHGLQ0LODQE\,WDOLDQDQG86DJHQWV LQ)HEUXDU\2PDUZDVWKHQWDNHQWRDMRLQW86,WDOLDQDLUEDVHLQ,WDO\IORZQ WRD86DLUEDVHLQ*HUPDQ\DQGILQDOO\IORZQWR(J\SWZKHUHKHZDVWRUWXUHGLQ SULVRQE\WKH6HFXULW\)RUFHV ,Q -XQH DQ ,WDOLDQ -XGJH LVVXHG DQ LQGLFWPHQW DJDLQVW $EX 2PDU IRU FULPHVUHODWLQJWR7HUURULVP$WWKHVDPHWLPH,WDOLDQDXWKRULWLHVEHJDQDQLQTXLU\ LQWRWKHDOOHJHGUHQGLWLRQWRWRUWXUH$VHULHVRIDUUHVWZDUUDQWVZHUHLVVXHGIRU&,$ DJHQWV DOOHJHG WR KDYH EHHQ LQYROYHG LQ WKH UHQGLWLRQ DQG H[WUDGLWLRQ ZDV UHTXHVWHG ,Q PLG D FULPLQDO WULDO EHJDQ ZLWK &,$ DJHQWV DQG D 8QLWHG 6WDWHV $LU )RUFH &RORQHO EHLQJ WULHG LQ WKHLU DEVHQFH IRU WKHLUUROH LQ WKH DOOHJHG H[WUDRUGLQDU\UHQGLWLRQ /DXUD%DUQHWW´([WUDRUGLQDU\5HQGLWLRQ,QWHUQDWLRQDO/DZDQGWKH3URKLELWLRQRI7RUWXUHµ3DUOLDPHQWDU\ ,QIRUPDWLRQDQG5HVHDUFK6HUYLFH5HSRUWIRU3DUOLDPHQW:DVKLQJWRQ'&&RQJUHVVLRQDO5HVHDUFK6HUYLFH 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD $W WKH HQG RI WKHVH WULDOV $EX 2PDU ZDV HYHQWXDOO\ UHOHDVHG XQFKDUJHG LQ )HEUXDU\IRUODFNRIHYLGHQFHSURYLQJKLVLQYROYHPHQWLQWKHDOOHJHGDFWVRI 7HUURULVP 6HFUHW'HWHQWLRQ&HQWUHVLQ(XURSH3DUOLDPHQWDU\DQG([HFXWLYH$FWLRQV 2Q D EURDGHU VFDOH LQ QXPHURXV DOOHJDWLRQV DURVH LQ WKH PHGLD VXUURXQGLQJ VHFUHW GHWHQWLRQ FHQWUHV LQ YDULRXV (XURSHDQ FRXQWULHV $ QXPEHU RI LQTXLULHVEHJDQDWWKHUHJLRQDOOHYHOWRLQYHVWLJDWHWKHVHDOOHJDWLRQVDQGWKHOHJDOLW\ RI VHFUHW GHWHQWLRQ FHQWUHV ZLWK UHVSHFW WR VWDWHV· REOLJDWLRQV XQGHU WKH (XURSHDQ &RQYHQWLRQ $UW RI WKH &RQYHQWLRQ DOORZV WKH 6HFUHWDU\ *HQHUDO RI WKH &RXQFLO RI (XURSH WR UHTXHVW WKH 6WDWH SDUWLHV WR ´IXUQLVK DQ H[SODQDWLRQ RI WKH PDQQHULQZKLFKLWVLQWHUQDOODZHQVXUHVWKHHIIHFWLYHLPSOHPHQWDWLRQRIDQ\RIWKH 3URYLVLRQV RI WKH &RQYHQWLRQ $ UHSRUW LVVXHG E\ WKH 6HFUHWDU\ *HQHUDO LQ FRQFOXGHGWKDWDOOIRUPVRIGHSULYDWLRQRIOLEHUW\WKDWWDNHSODFHRXWVLGHWKHUHJXODU OHJDOIUDPHZRUNPXVWEHGHILQHGDVFULPLQDORIIHQFHVXQGHUWKHGRPHVWLFODZDQG VWURQJ FULPLQDO VDQFWLRQV VKRXOG EH OHYLHG DJDLQVW LQWHOOLJHQFH VWDII DQG VHFXULW\ IRUFHVLQVXFKDFWLYLWLHV ,Q WDQGHP ZLWK WKLV LQLWLDWLYH 7KH 3DUOLDPHQWDU\ $VVHPEO\ RI WKH &RXQFLO RI (XURSH DVNHG LWV &RPPLWWHH RQ /HJDO $IIDLUV DQG +XPDQ 5LJKWV WR FRQGXFW DQ LQYHVWLJDWLRQ 7KH &RPPLWWHH LVVXHG WZR UHSRUWV 7KH ILUVW RQH ,ELG &RXQFLORI(XURSH&RQYHQWLRQIRUWKH3URWHFWLRQRI+XPDQ5LJKWVDQG)XQGDPHQWDO)UHHGRPVYLD(&+5 :HEVLWHKWWSHFKUFRHLQW15UGRQO\UHV(QJOLVKSGIDFFHVVHG0DUFK &RXQFLORI(XURSH5HSRUWRIWKH6HFUHWDU\*HQHUDOXQGHU$UWRI(&+5RQWKHTXHVWLRQRIVHFUHWGHWHQWLRQDQG WUDQVSRUWRIGHWDLQHHVVXVSHFWHGRIWHUURULVWDFWVQRWDEO\E\RUDWWKHLQVWLJDWLRQRIIRUHLJQDJHQFLHV *HQHYD YLD&RXQFLORI(XURSHZHEVLWHKWWSZFGFRHLQW9LHZ'RFMVS"5HI 6*DFFHVVHG0DUFK 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD FRQFOXGHG WKDW VHFUHW GHWHQWLRQ FHQWUHV LQGHHG H[LVWHG DQG WKDW (XURSHDQ FRXQWULHV KDG SOD\HG DQ DFWLYH RU SDVVLYH UROH LQ WKHLU HVWDEOLVKPHQW VRPH ZHUH UHVSRQVLEOHIRUUHQGLWLRQVWRWKHVHFHQWUHVDQGVRPHUHIXVHGWRLQVSHFWWKHVHFHQWUHV DQGILQGRXWPRUHDERXWWKHP 7KH &RXQFLO RI (XURSH·V (XURSHDQ &RPPLVVLRQ IRU 'HPRFUDF\ WKURXJK /DZ DOVR NQRZQ DV 9HQLFH &RPPLVVLRQ DOVR LQYHVWLJDWHG +XPDQ 5LJKWV REOLJDWLRQVRI6WDWHVZLWKUHVSHFWWRGHWHQWLRQFHQWUHV,Q0DUFKWKH9HQLFH &RPPLVVLRQ UHOHDVHG D UHSRUW VWDWLQJ WKDW WKH UHQGLWLRQV LQ TXHVWLRQ ZHUH LQFRQVLVWHQWZLWK$UW RIWKH(XURSHDQ&RQYHQWLRQZKLFKRXWOLQHVWKHULJKWWR OLEHUW\DQGVHFXULW\RIWKHSHUVRQDQGSURKLELWLRQRIWRUWXUH )LQDOO\7KH(XURSHDQ3DUOLDPHQW·V7HPSRUDU\&RPPLWWHHRQWKHDOOHJHG XVHRI(XURSHDQFRXQWULHVE\WKH&,$IRUWKH7UDQVSRUWDWLRQDQG,OOHJDO'HWHQWLRQ RI 3ULVRQHUV LVVXHG LWV UHSRUW LQ -DQXDU\ ,Q WKLV UHSRUW WKH &RPPLWWHH DGPRQLVKHG(XURSHDQFRXQWULHVDQG7XUNH\IRUKDYLQJKHOSHGRUWXUQHGDEOLQG H\HWRWKH&,$·VWUDQVSRUWDWLRQRIVXVSHFWVWRVHFUHWGHWHQWLRQFHQWUHVRUIRUIDLOLQJ WR FRRSHUDWH ZLWK WKH (XURSHDQ 3DUOLDPHQW·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¶V5HPHGLHVDQG/HJLVODWLYH)UDPHZRUNDJDLQVW7RUWXUHYLD:HEVLWHRI WKH&DQDGLDQ'HSDUWPHQWRI-XVWLFHKWWSODZVMXVWLFHJFFDHQVKRZGRFFVDFFHVVHG-DQXDU\ 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD 7KHWHUP´2IILFLDO´LQFOXGHVDPHPEHURIWKHVHFXULW\IRUFHV G ³7RUWXUH´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´1R SHUVRQ VKDOO DGPLQLVWHU LQVWLJDWHFRQVHQWWRRUDFTXLHVFHLQDQ\FUXHOLQKXPDQRUGHJUDGLQJWUHDWPHQWRU SXQLVKPHQWRIDQRIIHQGHU´ZKRLVLQFDUFHUDWHGLQDSHQLWHQWLDU\ &ULPHVDJDLQVW+XPDQLW\DQG:DU&ULPHV$FW 7KLV VWDWXWH FRGLILHV WKH RIIHQFHV RI *HQRFLGH &ULPHV DJDLQVW +XPDQLW\ :DU &ULPHV DQG EUHDFK RI UHVSRQVLELOLW\ E\ PLOLWDU\ FRPPDQGHUV DQG FLYLOLDQ VXSHULRUV DOORZV WKH SURVHFXWLRQ RI DQ\ LQGLYLGXDO SUHVHQW LQ &DQDGD IRU DQ\ 2IIHQFHVWDWHGLQWKH$FWUHJDUGOHVVRIZKHUHWKHRIIHQFHRFFXUUHG 6WDWH,PPXQLW\$FW 7KLV $FW UHIOHFWV &DQDGLDQ *RYHUQPHQW·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·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¶0RGHUQ7RUWXUH¶DVLWFRQIURQWVXQLTXHFRQWHPSRUDU\FKDOOHQJHV1RQ6WDWHDQG HYHQ 3ULYDWH $FWRUV &RPPLWWLQJ VHHPLQJO\ UDQGRP DFWV RI YLROHQFH RIWHQ XQFRQQHFWHG WR WKHLU ROG YHQXHV FULPLQDO SURFHHGLQJV FRUSRUDO SXQLVKPHQW DQG IRUFHGFRQIHVVLRQV7KHRIIHQFHRI7RUWXUHDVD:DU&ULPHDVKDVEHHQVHWRXWLQ WKH 6WDWXWHV RI WKH ,QWHUQDWLRQDO &ULPLQDO 7ULEXQDO IRU WKH )RUPHU <XJRVODYLD ,&7< DQG ,QWHUQDWLRQDO &ULPLQDO 7ULEXQDO IRU 5ZDQGD ,&75 LV QRW FOHDUO\ GHILQHG7KLVOHDYHVWKHSRZHURIGHWHUPLQDWLRQRIWKHPHDQLQJRI¶7RUWXUH·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·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·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·V GHFLVLRQ LQ WKLV FDVH KDV EHHQ ZLGHO\ DFFHSWHG LQ ODWHUGHFLVLRQVE\WKH,&7<DQGWKH,&75 G ,VUDHO $W WKH LQWHUQDWLRQDO OHYHO WKHUH KDYH DOZD\V EHHQ FHUWDLQ WRUWXUH PRGHOV IROORZHG E\ GLIIHUHQW FRXQWULHV DQG FRQWLQHQWV 2QH RI WKHP LV WKH ´/$1'$8 02'(/´LQ,VUDHO5HFRPPHQGHGWRWKH,VUDHOLJRYHUQPHQWE\D&RPPLVVLRQRI ,QTXLU\LQ7KH&RPPLVVLRQ·VUHSRUWHVWDEOLVKHGPHWKRGVIRULQWHUURJDWLQJ VXVSHFWHGWHUURULVWVDQGVHWRXWWKHOHJDODQGPRUDOIUDPHZRUN ZLWKLQZKLFKWKH\ ZHUHSUDFWLFHGLQ,VUDHOEHWZHHQDQG7KHWHFKQLTXHVRILQWHUURJDWLRQ EHFDPHFRPPRQDVDUHVXOWRIIUHTXHQWXVHZKLFKLQWXUQOHGWRWKHSUDFWLFHVEHLQJ ODEHOHGDVD¶PRGHO· 8QGHU WKH /DQGDX PRGHO GHWDLQHHV XQGHU LQWHUURJDWLRQ ZHUH RIWHQ KHOG LQFRPPXQLFDGR LH LVRODWHG DQG VHFOXGHG ZLWK QR RSSRUWXQLW\ RI EHLQJ DEOH WR FRPPXQLFDWHLQDQ\PDQQHUZLWKWKHRXWVLGHZRUOG7KH*66LQWHUURJDWLRQFHQWUHV ZHUHORFDWHGLQWKHUHPRWHDQGVHFOXGHGFRUQHUVRI,VUDHO,QKRXVHLQYHVWLJDWLRQV ,ELG ,&7<3URVHFXWRUYV/LPDMHWDO ,&7<7ULDO&KDPEHU5HSRUWVS ,&753URVHFXWRUYV6HPDQ]D ,&75$SSHDO&KDPEHU5HSRUWVS 7KH&RPPLVVLRQZDVQDPHGDV´&RPPLVVLRQRI,QTXLU\LQWKHPDWWHURILQWHUURJDWLRQPHWKRGVRIWKH*HQHUDO 6HFXULW\6HUYLFHUHJDUGLQJ+RVWLOH7HUURULVW$FWLYLW\´ZKLFKZDVKHDGHGE\UHWLUHG3UHVLGHQWRIWKH6XSUHPH&RXUW RI,VUDHO0U0RVKH/DQGDX <XYDO*LQEDU:K\QRW7RUWXUH7HUURULVWV0RUDO3UDFWLFDODQG/HJDODVSHFWVRIWKH¶7LFNLQJ%RPE¶MXVWLILFDWLRQ IRUWRUXUH 1HZ<RUN2[IRUG8QLYHUVLW\3UHVV S 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD ZHUHFRQGXFWHGZKLFKDVVXUHGWKDWLQDOOEXWRQHFDVHQR*66LQWHUURJDWRUZRXOG IDFH DQ\ FULPLQDO FKDUJHV 7KH PHWKRGV XVHG E\ WKH LQWHUURJDWRUV QHHG VSHFLDO PHQWLRQ ,QWHUURJDWLRQ0HWKRGV ,W VKRXOG ILUVW EH QRWHG WKDW LQFRPPXQLFDGR GHWHQWLRQ ZDV LQ HIIHFW DQ LQWHUURJDWLRQ WHFKQLTXH 7KH YHU\ PLOLWDU\ RUGHU RQ WKH EDVLV RI ZKLFK *66 SHUVRQQHO QDPHO\WKH¶SHUVRQLQFKDUJHRIWKHLQWHUURJDWLRQ· FRXOGLVVXHDQRUGHU SURKLELWLQJDQLQWHUURJHHIURPVHHLQJKLVODZ\HUVWLSXODWHVWKDWWKLVEHGRQH¶ZKHUH LW LV UHTXLUHG IRU UHDVRQV RI VHFXULW\ RI WKH DUHD RU LQ WKH LQWHUHVW RI LQWHUURJDWLRQ¶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¶FULPLQDOQHJOLJHQFH·DQGVHQWHQFHGWRVL[PRQWKV· LPSULVRQPHQWHDFK7KH6XSUHPH&RXUWXSKHOGWKHFRQYLFWLRQVDQGVHQWHQFHV&ULP$SS$QRQ\PRXV 3HUVRQVYWKH6WDWHRI,VUDHO 6 F F RIWKH0LOLWDU\2UGHUFRQFHUQLQJ6HFXULW\3URYLVLRQV1R 6XSUDQ 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD E 7KHµ6KDEHK¶&RPELQDWLRQ7KLVZDVDFRPELQDWLRQRIPHWKRGVXVHGPRVWO\ EHWZHHQ VHVVLRQV RI TXHVWLRQLQJ IRU SHULRGV RI GD\V DQG LQWHUPLWWHQWO\ ZHHNV,WFRPELQHGVHQVRU\LVRODWLRQVOHHSGHSULYDWLRQDQGWKHLQIOLFWLRQRI SK\VLFDOSDLQ5HJXODU6KDEHKHQWDLOHGVKDFNLQJWKHKDQGVDQGOHJVWRDVPDOO FKDLU DQJOHG WR VODQW IRUZDUG VR WKDW WKH LQWHUURJHH FDQQRW VLW LQ D VWDEOH SRVLWLRQ7KHKHDGZDVFRYHUHGZLWKDQRIWHQILOWK\VDFNDQGORXGPXVLFZDV SOD\HG FRQWLQXRXVO\ WKURXJK ORXGVSHDNHUV 'HWDLQHHV ZHUH QRW DOORZHG WR VOHHS 6OHHS GHSULYDWLRQ ZDV DFKLHYHG PDLQO\ E\ XVLQJ WKH DIRUHPHQWLRQHG PHWKRGV DQG DOVR E\ KDYLQJ WKH JXDUG RQGXW\ ZDNH XS DQ\ GHWDLQHH ZKR PDQDJHG WR GR]H RII 6OHHS GHSULYDWLRQ DOVR PHDQW WKDW WKH GHWDLQHHV ZHUH RIWHQPDGHWRVLWRUVWDQGLQVWUHVVIXOSRVLWLRQVIRUKRXUVWRJHWKHU F 2WKHU PHWKRGV 7KHVH LQFOXGHG YDULDWLRQV LQ WKH 6KDEHK SRVLWLRQ VXFK DV IRUFLQJWKHLQWHUURJHHWRVWDQGUDWKHUWKDQVLWVWUHWFKSRVLWLRQVVXFKDV¶VLWWLQJ RQ D VPDOO FKDLU ZLWK DUPV UDLVHG EDFNZDUGV· )RUFHG FURXFKLQJ RU ¶)URJ 3RVLWLRQV¶ VODSV NLFNV DQG EHDWLQJV $QRWKHU PHWKRG ZDV GHVFULEHG DV ¶7LJKWHQLQJ 6KDFNOHV¶ $ *66 LQWHUURJDWRU GHVFULEHG WKLV DV ¶FORVLQJ WKH KDQGFXII WR WKH ODVW QRWFK DOORZHG E\ WKH GLDPHWHU RI WKH LQWHUURJHH·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¶7RUWXUH:DUUDQWV·LQ,VUDHOXQGHUWKH/DQGDX0RGHO 7KH V\VWHP RI ¶7RUWXUH :DUUDQWV·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¶WRUWXUH·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·VKDQGOLQJRIWKHVHSHWLWLRQVFRQVWLWXWHGLQVXEVWDQFHLI QRW LQ IRUP D ¶WRUWXUH ZDUUDQWV·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¶SK\VLFDO IRUFH· ZKHQ LQWHUURJDWLQJ WKH VSHFLILF GHWDLQHHV,QERWKWKHVHFDVHVWKH&RXUWJUDQWHGWKHUHTXHVWPDGHE\WKH6WDWH 7KH0XEDUDN&DVH 'XULQJ WKH SURFHHGLQJV LQ WKLV FDVH WKH 6WDWH DGPLWWHG WKDW GXULQJ 0XEDUDN·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·V UHTXHVW IRU DQ LQWHULP LQMXQFWLRQ SURKLELWLQJ WKH FRQWLQXHG XVH RI WKHVH PHWKRGV WKXV DFFHSWLQJ ,Q D 0DMRULW\ GHFLVLRQ WKH ,Q%LOEHLVLWKH*66LQLWLDOO\DFFHSWHGWKHLQWHULPLQMXQFWLRQLVVXHGE\WKH&RXUWDQGVWDWHGWKDWLWZRXOGQRWXVH ¶SK\VLFDO IRUFH· GXULQJ LQWHUURJDWLRQ 6HH +&- $EG DO+DOLP %LOEHLVL Y WKH *66 5HVSRQVH $IILGDYLW E\ UHVSRQGHQW GHFLVLRQ RI 'HFHPEHU ,Q +DPGDQ WKH &RXUW·V GHFLVLRQ LWVHOI LV EDVHG RQ WKH 5HVSRQGHQW·V FRQVHQW WR WKH LVVXDQFH RI DQ LQWHULP LQMXQFWLRQ 6HH +&- 0XKDPPDG $EG DO$]L] +DPGDQ Y WKH *66 2UGHU1LVLDQG,QWHULPLQMXQFWLRQGHFLVLRQRI1RYHPEHU +&-.KDGHU0XEDUDNDQG3XEOLF&RPPLWWHHDJDLQVWWRUWXUHLQ,VUDHOYWKH*66GHFLVLRQRI1RYHPEHU +&-2PDU$EGDO5DKPDQ*KDQHLPDWYWKH0LQLVWHURI'HIHQFHHWDOUXOLQJRI0D\ 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD 6WDWH·VFODLPWKDWHYHQDIWHUPRUHWKDQWZRPRQWKVWKH¶LQWHQVLYHLQWHUURJDWLRQ· WR ZKLFK *KDQHLPDW ZDV VXEMHFWHG ZDV QHFHVVDU\ IRU ¶WKH LPPHGLDWH SURFXUHPHQW·RILQIRUPDWLRQRQZKLFK¶KXPDQOLIH·GHSHQGHG 7KH/DQGPDUN6XSUHPH&RXUW-XGJPHQWRI 2Q WK 6HSWHPEHU 7KH ,VUDHOL 6XSUHPH &RXUW VLWWLQJ DV WKH +LJK &RXUW RI -XVWLFH GHOLYHUHG D ODQGPDUN MXGJPHQW UHODWHG WR WKH XVH RI WRUWXURXV WHFKQLTXHV GXULQJ LQWHUURJDWLRQ RI GHWDLQHHV DQG VXVSHFWHG WHUURULVWV ,Q WKLV MXGJPHQW WKH GHIHQFH RI QHFHVVLW\ ZDV WDNHQ E\ WKH *RYHUQPHQW RI ,VUDHO DV D SUHWH[WWRWKH XVHRIWRUWXUH :KHUH WRUWXUH WDNHVSODFHSURVHFXWRUV DQGRU FRXUWV ZRXOG GHWHUPLQH H[ SRVW IDFWR ZKHWKHU WKH VLWXDWLRQ ZDV D ´7,&.,1* %20% 6,78$7,21´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·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´6HYHULW\µ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´7RUWXUHLQ,QWHUQDWLRQDO+XPDQ5LJKWVDQG+XPDQLWDULDQ/DZ7KH$FWRUDQGWKH$G+RF 7ULEXQDOVµ/HLGHQ-RXUQDORI,QWHUQDWLRQDO/DZ6HSWHPEHUSSYLD/(;,61(;,6DFFHVVHG0D\ +3HDUFH´$Q([DPLQDWLRQRIWKH,QWHUQDWLRQDO8QGHUVWDQGLQJRI7RUWXUHRI3ROLWLFDO5DSHDQGWKH6LJQLILFDQFH RI/DEHOLQJLW7RUWXUHµ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·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´7KH/HJDO&RQWRXUVRIWKH&ULPHRI7RUWXUH7RUWXUHLQWKH-XULVSUXGHQFHRIWKH$G+RF 7ULEXQDOV$&ULWLFDO$VVHVVPHQWµ-RXUQDORI,QWHUQDWLRQDO&ULPLQDO-XVWLFH9RO$SULOSSYLD /(;,61(;,6DFFHVVHG-XQH 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD DSSOLFDEOH WR QRQVWDWH DFWRUV LQ LQWHUQDO DUPHG FRQIOLFWV LW VSHOOV GRRP IRU WKH RWKHUVZKRPD\EHWRUWXUHGRQWKHSUHVXPSWLRQRILQYROYHPHQWLQ7HUURULVW$FWV E\6HFXULW\)RUFHV ,VUDHO $OOSHWLWLRQVHQWHUWDLQHGE\WKH,VUDHOL6XSUHPH&RXUWGXULQJWKH¶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´7HUURU 6XVSHFWV´GHWDLQHGDW$EX*KUDLEDQG*XDQWDQDPR%D\E\WKH866HFXULW\)RUFHV $OVR NQRZQ DV 86 0DULQHV KDYH EHFRPH NQRZQ WR WKH ZRUOG DW ODUJH 7KLV 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD FKDSWHUZLOOORRNLQWRWKHEDFNJURXQGDQGFRQGLWLRQVRIGHWHQWLRQRIVXFKSHUVRQV DWOHQJWK 2Q WK 6HSWHPEHU WZR DLUSODQHV FUDVKHG LQWR WKH WZLQ WRZHUV RI WKH :RUOG 7UDGH &HQWUHLQ 1HZ <RUN &DVXDOWLHV ZHUHSOHQW\ 5HVSRQVLELOLW\ IRU WKLVKHLQRXVDFWZDVDFFHSWHGE\WZR7HUURULVW2UJDQL]DWLRQVFDOOHG$O4DHGDDQG WKH 7DOLEDQ 7KHVH DUH DOOHJHGO\ KHDGHG E\ WKH QRWRULRXV WHUURULVW OHDGHU 2VDPD %LQ /DGHQ 7KLV LQFLGHQW LV SRSXODUO\ FDOOHG WKH LQFLGHQW RI 7KH RFFXUUHQFHPDGHDVWDWHPHQWWRWKHZRUOGWKDWHYHQDSRZHUIXOGHPRFUDF\OLNHWKH 86$ZDVQRWIXOO\VHFXUHGDJDLQVWDFWVRIWHUURULVPDQGWKDWLWVERXQGDULHVFRXOG EH EUHDFKHG HDVLO\ 7KH ZKROH VHFXULW\ V\VWHP RI $PHULFD ZDV FKDOOHQJHG DQG KHQFH KDG WR EH FRPSOHWHO\ UHYDPSHG ,Q RWKHU ZRUGV VHFXULW\ DJHQFLHV EHFDPH PRUH DOHUW DQG FDPH GRZQ KHDYLO\ RQ DQ\ LQGLYLGXDO RU RUJDQL]DWLRQ WKDW WKH\ VXVSHFWHGRIKDYLQJFRQQHFWLRQLQVRPHRUWKHRWKHUZD\WR $V D UHVXOW RI LQFUHDVLQJ VXVSLFLRQ RI WKH 86 *RYHUQPHQW DQG ,QWHOOLJHQFH DJHQFLHVOLIHFKDQJHGFRPSOHWHO\IRUWKH$PHULFDQV1RRQHZDVVSDUHGIURPWKH ZUDWK RI WKH *RYHUQPHQW RIILFLDOV DQG HYHQ WKH VOLJKWHVW RI XQWRZDUG EHKDYLRXU \LHOGHG VHYHUH FRQVHTXHQFHV 3RVW WKH 86 $UP\ FDUULHG RXW RSHUDWLRQV LQ 3DNLVWDQ$IJKDQLVWDQWRIOXVKRXWDOOWKRVHZKRZHUHVXVSHFWHGRIKDYLQJWHUURULVW URRWVEHORQJLQJWRRUJDQL]DWLRQVVSUHDGLQJWHUURUWKURXJKRXWWKHZRUOG7KLVZDV GXEEHGDVWKH´:$5217(5525´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´:DU DJDLQVW 7HUURULVPµ DOVR FDOOHG WKH *OREDO :DU RQ 7HUURU LQ $IJKDQLVWDQ WKH ZRUOG·V VXSHUSRZHU WKH 86$ KDV FDSWXUHG KXQGUHGV RI HQHP\ VROGLHUV DQG DOOHJHG WHUURULVWV ZKR DUH EHOLHYHG WR EH DFWLYH PHPEHUV RI WKH WHUURULVW RUJDQL]DWLRQV OLNH WKH $O4DHGDDQG 7DOLEDQ ,QVWHDG RI VHWWLQJ XS 32: FDPSVLQWKH$IJKDQ7HUULWRU\ZKLFKLVRVWHQVLEO\XQGHULWVFRQWURODQGDVVLVWLQJ WKHLQWHULP*RYHUQPHQWLWKDVVHQWDOOGHWDLQHHVWRLWV1DYDO%DVHDW*XDQWDQDPR %D\$SDUWIURPWKH$IJKDQ'HWDLQHHVLWDOVRFDSWXUHGFHUWDLQGHWDLQHHVGXULQJ LWV RSHUDWLRQV LQ ,UDT DJDLQVW WKH 6DGGDP +XVVDLQ *RYHUQPHQW $Q DWWHPSW ZDV PDGHE\WKH86$UP\WRRYHUWKURZWKDWUHJLPHLQDPLOLWDU\FRXS7KHDUP\ZDV VXFFHVVIXOLQLWV(QGHDYRXUWKHUHE\WDNLQJLQPDQ\,UDTL&LYLOLDQVDQGPHPEHUVRI WKH $UPHG )RUFHV DV FDSWLYHV 6LQFH WKHQ WKH\ KDYH EHHQ GHWDLQHG DW WKH $EX *KUDLE'HWHQWLRQ&HQWUHLQ,UDTLWVHOI 7KH 86 JRYHUQPHQW V FODVVLILFDWLRQ RI WKH GHWDLQHHV DW $EX *KUDLE DQG *XDQWDQDPR %D\ DV XQODZIXO FRPEDWDQWV KDV JHQHUDWHG FRQIXVLRQ DQG FRQWURYHUV\ 7KH WKHQ 86 'HIHQFH 6HFUHWDU\ 'RQDOG 5XPVIHOG V HDUO\ VWDWHPHQW WKDWDOORIWKHGHWDLQHHVZHUHXQODZIXOFRPEDWDQWVZKRODFNHGDQ\ULJKWVXQGHU 0DQRM.XPDU6LQKD´$O4DLGD3ULVRQHUVDW*XDQWDQDPR%D\$Q,QTXLU\µ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´'HDOLQJZLWKWKH'HWDLQHHVDW*XDQWDQDPR%D\DQG$EX*KUDLE+XPDQLWDULDQDQG+XPDQ5LJKWV 2EOLJDWLRQVXQGHUWKH*HQHYD&RQYHQWLRQVµ+XPDQ5LJKWV%ULHI1RYLD/(;,61(;,6DFFHVVHG)HEUXDU\ 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD IXUQLVKHG DQ\ LQIRUPDWLRQ DV WR WKH 3ULVRQHUV·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´)DLUQHVVIRU3ULVRQHUµ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´DUPHG FRQIOLFWµ ZKLFK GRHV QRW UHTXLUH D IRUPDOUHFRJQLWLRQRIRQHVWDWHE\DQRWKHU 7KH *HQHYD &RQYHQWLRQV ZRXOG KDYH PLQLPDO OHJDO HIIHFW LI VWDWHV FRXOG VLPSO\ HVFDSHWKHLUREOLJDWLRQVE\GHFODULQJWKDWDQDGYHUVDU\VWDWHZDVQRWWKHOHJLWLPDWH JRYHUQPHQW RI WKDW FRXQWU\ 'XULQJ WKH .RUHDQ :DU WKRXJK WKH 86 WUHDWHG SULVRQHUV IURP WKH 3HRSOH·V 5HSXEOLF RI &KLQD 35& WR EH 32:V XQGHU WKH *HQHYD &RQYHQWLRQV DOWKRXJK QHLWKHU WKH 81 QRU WKH 86 UHFRJQL]HG WKH 35& JRYHUQPHQWDWWKDWWLPH 5LJKWV DQG 3ULYLOHJHV RI WKH 3ULVRQHUV XQGHU ,QWHUQDWLRQDO +XPDQLWDULDQ /DZ 7KH 5LJKWV DQG3URWHFWLRQV *XDUDQWHHG WR WKH 32:V DUH HQXPHUDWHGDWOHQJWKLQ WKH 7KLUG *HQHYD &RQYHQWLRQ 5HODWLYH WR WKH 7UHDWPHQW RI 3ULVRQHUV RI :DU ´1RQ3ULYLOHJHGµRU8QODZIXO&RPEDWDQWVDUHSURWHFWHGXQGHUWKH)RXUWK*HQHYD &RQYHQWLRQ 5HODWLYH WR WKH 3URWHFWLRQ RI &LYLOLDQ 3HUVRQV LQ 7LPHV RI :DU &XVWRPDU\,QWHUQDWLRQDO/DZDQGXQGHU$GGLWLRQDO3URWRFRO,WRWKH)RXU*HQHYD &RQYHQWLRQV $UW RI $3 , SURYLGHV ´)XQGDPHQWDO *XDUDQWHHVµ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³7KH HVVHQWLDO JXDUDQWHHV RI LQGHSHQGHQFH DQG LPSDUWLDOLW\´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´DOOWKHMXGLFLDOJXDUDQWHHVUHFRJQL]HGDVLQGLVSHQVDEOHE\DFLYLOL]HGVRFLHW\µ $UWSURKLELWVKROGLQJ32:VLQFORVHFRQILQHPHQWH[FHSWDVQHFHVVDU\WR VDIHJXDUG WKHLU KHDOWK DQG LQ VXFK FLUFXPVWDQFHV WKH QDWXUH DQG GXUDWLRQ RI FRQILQHPHQWDOVRPXVWEHOLPLWHGWRZKDWLVQHFHVVDU\6LPLODUO\$UWUHTXLUHV WKDW32:VEHDFFRPPRGDWHGLQFRQGLWLRQVDVIDYRXUDEOHDVWKRVHSURYLGHGIRUWKH IRUFHV RI WKH GHWDLQLQJ SRZHU VWDWLRQHG LQ WKH VDPH DUHD 6XFK FRQGLWLRQV PXVW DOORZ IRU WKH KDELWV DQG FXVWRPV RI WKH SULVRQHUV DQG PD\ QRW EH SUHMXGLFLDO WR WKHLU KHDOWK $UW JXDUDQWHHV 32:V ´&RPSOHWH /DWLWXGH´ LQ WKH HQMR\PHQW DQG H[HUFLVHRIWKHLUUHOLJLRXVGXWLHV $UW RI WKH 7KLUG &RQYHQWLRQ UHTXLUHV WKDW D GHWDLQLQJ SRZHU H[HUFLVH ´WKH JUHDWHVW OHQLHQF\µ LQ GHWHUPLQLQJ ZKHWKHU DQ RIIHQFH DOOHJHG WR KDYH EHHQ FRPPLWWHG E\ D 32: EH DGMXGJHG E\ MXGLFLDO RU GLVFLSOLQDU\ SURFHHGLQJV DQG SURYLGHV WKDW ´:KHUHYHU SRVVLEOH GLVFLSOLQDU\ UDWKHU WKDQ MXGLFLDO PHDVXUHV´ VKRXOG EH WDNHQ $UW HQXQFLDWHV WKDW ´,Q QR FLUFXPVWDQFHV ZKDWVRHYHU VKDOO D SULVRQHURIZDUEHWULHGE\D&RXUWRIDQ\NLQGZKLFKGRHVQRWRIIHUWKHHVVHQWLDO JXDUDQWHHV RI LQGHSHQGHQFH DQG LPSDUWLDOLW\ DV JHQHUDOO\ UHFRJQL]HG DQG LQ SDUWLFXODU WKH SURFHGXUH RI ZKLFK GRHV QRW DIIRUG WKH DFFXVHG WKH ULJKWV DQG PHDQV RI GHIHQFH SURYLGHG IRU LQ $UW´ $UW JXDUDQWHHV 32:V WKH ULJKW DJDLQVW GRXEOH MHRSDUG\ $ SHUVRQ FDQQRW EH FRQYLFWHGWZLFHRU PRUH QXPEHU RI WLPHVIRUWKHVDPHRIIHQFH $UWOLPLWVWKHSHQDOWLHVWRZKLFKWKH32:VPD\EH VXEMHFWHGWRWKRVHWKDWZRXOGEHLPSRVHGXSRQPHPEHUVRIWKHDUPHGIRUFHVRIWKH GHWDLQLQJ SRZHU ZKR KDYH FRPPLWWHG WKH VDPH DFWV $UW WKXV JXDUDQWHHV 32:VWKHDVVLVWDQFHRIDOHJDOGHIHQFHE\DTXDOLILHGDGYRFDWH RUFRXQVHORIKLV ,ELG 6XSUD1RWH 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD FKRLFH,WIXUWKHUUHTXLUHVWKDWWKHGHWDLQLQJSRZHUGHOLYHUWRWKHSURWHFWLQJSRZHUD OLVW RI SHUVRQV TXDOLILHG WR SUHVHQW WKH 32:V GHIHQFH DQG XOWLPDWHO\ REOLJHV WKH GHWDLQLQJSRZHUWRDSSRLQWDFRPSHWHQWDGYRFDWHRUFRXQVHOLIWKH32:GRHVQRW FKRRVHKLVRZQ$UWSURYLGHVWKDW32:VZLOOKDYHWKHVDPHULJKWRIDSSHDODV LVJXDUDQWHHGWRWKHPHPEHUVRIWKHDUPHGIRUFHVRIWKHGHWDLQLQJSRZHU 7KXV DORQJ ZLWK WKH ULJKW WR KXPDQH WUHDWPHQW DW DOO WLPHV 32:V DOVR SRVVHVVWKHDERYHULJKWVDQGSULYLOHJHVZKLFKDUHDQFLOODU\DQGLQFLGHQWDOWRWKHLU 32: 6WDWXV ,Q SXUVXDQFH RI WKH DEVROXWH EDQ RQ WRUWXUH LPSRVHG E\ WKH LQWHUQDWLRQDOLQVWUXPHQWVWKHSURKLELWLRQRQWKHXVHRIWRUWXUHE\ODZHQIRUFHPHQW RIILFLDOV GXULQJ WKH LQWHUURJDWLRQ RI GHWDLQHHV DQG 32:V KDV EHFRPH D SDUW RI FXVWRPDU\ LQWHUQDWLRQDO ODZ VLQFH WKH ULJKW DJDLQVW WRUWXUH LV EDVLF KXPDQ ULJKW JXDUDQWHHG WR DOO SHUVRQV LUUHVSHFWLYH RI UDFH UHOLJLRQ FDVWH OHJDO VRFLDO RU SROLWLFDOVWDWXVHWF7KLVFDQQRWEHWDNHQDZD\IURPWKHPHLWKHUEHIRUHRUDIWHUWKH IRUPDOOHJDOGHWHUPLQDWLRQRIWKHLUVWDWXVE\DFRPSHWHQWWULEXQDODVSHU$UWRI *&,,, ,,,,QWHUURJDWLRQ7HFKQLTXHVXVHGRQWKHGHWDLQHHV7KH86LVDSDUW\WRWKH &RQYHQWLRQDJDLQVW7RUWXUH8SRQUDWLILFDWLRQWKH86GHILQHGWRUWXUHLQLWV SHQDOFRGHDVIROORZV´DQDFWFRPPLWWHGE\DSHUVRQDFWLQJXQGHUWKHFRORXURI ODZ VSHFLILFDOO\ LQWHQGHG WR LQIOLFW VHYHUH SK\VLFDO RU PHQWDO SDLQ RU VXIIHULQJ RWKHUWKDQSDLQRUVXIIHULQJLQFLGHQWDOWRODZIXOVDQFWLRQV XSRQDQRWKHUSHUVRQ ZLWKLQ KLV FXVWRG\ RU SK\VLFDO FRQWURO´ 7KH 86 *RYHUQPHQW GHYHORSHG WKH ´+LJK 9DOXH 'HWDLQHHV´ +9' PRGHO LQ WKH FRQWH[W RI WKH ZDU RQ WHUURU $OO +9'VZHUHVXEMHFWHGWRH[WUHPHIRUPVRIWRUWXUHDQGFUXHOWUHDWPHQWEHFDXVHWKH %HWK9DQ6FKDDFN´7HDFKLQJ7RUWXUHµ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¶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¶VIDFHZLWKILQJHUVVOLJKWO\VSUHDG7KHKDQGPDNHVFRQWDFWZLWK WKHDUHDGLUHFWO\EHWZHHQWKHWLSRIWKHLQGLYLGXDO¶VFKLQDQG WKHERWWRPRI WKH FRUUHVSRQGLQJ HDUOREH 7KH LQWHUURJDWRU WKXV LQYDGHV LQWR WKH LQGLYLGXDO¶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¶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¶V IHHW ZLWK RQO\ WKH GHWDLQHH¶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¶V UHVLVWDQFH DQG SHUVXDGH KLP WR FRRSHUDWH ZLWK LQWHUURJDWRUV 7KH ZDWHU SRXUHG RQ KLV KHDG PXVW EH SRWDEOH DQG WKH LQWHUURJDWRUV PXVW HQVXUH WKDW ZDWHU GRHV QRW HQWHU WKH GHWDLQHH¶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¶V KDQGV DUH VKDFNOHG LQ IURQW RI KLV ERG\ VR WKDW WKH GHWDLQHH KDV DSSUR[LPDWHO\DWZRWRWKUHHIRRWGLDPHWHURIPRYHPHQW7KHGHWDLQHH¶VIHHW DUH VKDFNOHG WR D EROW LQ WKH IORRU 'XH FDUH LV WDNHQ WR HQVXUH WKDW WKH 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD VKDFNOHVDUHQHLWKHUWRRORRVHQRUWRRWLJKWIRUSK\VLFDOVDIHW\,WZDVIRXQG RXWIURPGLVFXVVLRQVZLWKWKHGHWDLQHHVWKDWWKHVKDFNOLQJGRHVQRWUHVXOWLQ DQ\ VLJQLILFDQW SK\VLFDO SDLQ IRU WKH VXEMHFW 7KH GHWDLQHH¶V KDQGV DUH JHQHUDOO\ EHWZHHQ WKH OHYHO RI KLV KHDUW DQG KLV FKLQ ,Q VRPH FDVHV WKH GHWDLQHH¶V KDQGV PD\ EH UDLVHG DERYH WKH OHYHO RI KLV KHDG EXW RQO\ IRU D SHULRGRIXSWRWZRKRXUV$OORIWKHGHWDLQHH¶VZHLJKWLVERUQHE\KLVOHJV DQGIHHWGXULQJVWDQGLQJVOHHSGHSULYDWLRQ 7KH ³:DWHU ERDUG´ ,Q WKLV WHFKQLTXH WKH GHWDLQHH LV O\LQJ RQ D JXUQH\ WKDW LV LQFOLQHG DW DQ DQJOH RI WR GHJUHHV WR WKH KRUL]RQWDO ZLWK WKH GHWDLQHH RQ KLV EDFN DQG KLV KHDG WRZDUG WKH ORZHU HQG RI WKH JXUQH\ $ FORWKLVSODFHGRYHUWKHGHWDLQHH¶VIDFHDQGFROGZDWHULVSRXUHGRQWKHFORWK IURP D KHLJKW RI DSSUR[LPDWHO\ WR LQFKHV 7KH ZHW FORWK FUHDWHV D EDUULHUWKURXJKZKLFKLWLVGLIILFXOWRULQVRPHFDVHVQRWSRVVLEOHWREUHDWKH $VLQJOHDSSOLFDWLRQRIZDWHUPD\QRWODVWIRUPRUHWKDQVHFRQGVZLWKWKH GXUDWLRQ RI DQ DSSOLFDWLRQ PHDVXUHG IURP WKH PRPHQW ZKHQ ZDWHU RI ZKDWHYHUTXDQWLW\LVILUVWSRXUHGRQWRWKHFORWKXQWLOWKHPRPHQWWKHFORWKLV UHPRYHG IURP WKH VXEMHFW¶V IDFH :KHQ WKH WLPH OLPLW LV UHDFKHG WKH SRXULQJ RI ZDWHU LV LPPHGLDWHO\ GLVFRQWLQXHG DQG WKH FORWK LV UHPRYHG ,I WKH GHWDLQHH PDNHV DQ HIIRUW WR GHIHDW WKH WHFKQLTXH HJ E\ WZLVWLQJ KLV KHDG WR WKH VLGH DQG EUHDWKLQJ RXW RI WKH FRPHU RI KLV PRXWK WKH LQWHUURJDWRUPD\FXSKLVKDQGVDURXQGWKHGHWDLQHH¶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´2Q D FRXSOH RI RFFDVLRQV , HQWHUHG LQWHUYLHZ URRPV WR ILQG D GHWDLQHH FKDLQHG KDQGVDQGIHHWLQDIHWDOSRVLWLRQWRWKHIORRUZLWKQRFKDLUIRRGRUZDWHU0RVW WLPHVWKH\KDGXULQDWHGRUGHIHFDWHGRQWKHPVHOYHVDQGKDGEHHQOHIWWKHUHIRU KRXUVRUPRUH2QRQHRFFDVLRQWKHWHPSHUDWXUHKDGEHHQWXUQHGGRZQVRORZ DQG WKH GHWHQWLRQ URRP ZDV VR FROG WKDW WKH EDUHIRRWHG GHWDLQHH ZDV WUHPEOLQJ ZLWKFROG:KHQ,DVNHGVRPHRIWKHRIILFLDOVDERXWZKDWZDVJRLQJRQ,ZDVWROG WKDWLQWHUURJDWRUVIURPWKHGD\SULRUKDGRUGHUHGWKLVWUHDWPHQWDQGWKHGHWDLQHH ZDVQRWWREHPRYHG´ ,9 $PHULFDQ GRPHVWLF ODZ UHPHGLHV DJDLQVW WKH XVH RI WRUWXUH WHFKQLTXHV GXULQJLQWHUURJDWLRQRIVXVSHFWHGWHUURULVWVDQGGHWDLQHHV 7KHUHDUHYDULRXVOHJLVODWLRQVDQGSROLFLHVZKLFKQHHGWREHDQDO\]HGLQWKH SURJUDPPH RI GHWHQWLRQ DQG LQWHUURJDWLRQ RI VXVSHFWHG WHUURULVWV IROORZHG E\ WKH <XYDO*LQEDU0RUDO3UDFWLFDODQG/HJDODVSHFWVRIWKHµWLFNLQJERPE¶MXVWLILFDWLRQIRUWRUWXUH 1HZ<RUN 2[IRUG8QLYHUVLW\3UHVV S 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD 86*RYHUQPHQW7KHDSSOLFDWLRQRI&RPPRQ$UWRIWKH*HQHYD&RQYHQWLRQVWR WKHGHWHQWLRQDQGLQWHUURJDWLRQSURJUDPZLOODOVREHGLVFXVVHGEULHIO\ D 'HWDLQHH 7UHDWPHQW $FW 6 D OLPLWV WUHDWPHQW RU LQWHUURJDWLRQ PHWKRGV XVHG ZLWK WKH 'HSDUWPHQW RI 'HIHQFH GHWDLQHHV WR WKRVH ¶DXWKRUL]HG E\ DQG OLVWHG LQ WKH 86 $UP\ )LHOG 0DQXDO RQ ,QWHOOLJHQFH LQWHUURJDWLRQV¶ 6 D SURYLGHV LQWHU DOLD WKDW 1R LQGLYLGXDO LQ WKH FXVWRG\ RU FRQWURO RI WKH 86 *RYHUQPHQW UHJDUGOHVV RI QDWLRQDOLW\ RU ORFDWLRQ VKDOO EH VXEMHFWHG WR FUXHO LQKXPDQ RU GHJUDGLQJ WUHDWPHQW RU SXQLVKPHQW 7KH GHILQLWLRQ RI LOOWUHDWPHQW LV WDNHQ IURP WKH 81 7RUWXUH &RQYHQWLRQDVSHU6 G 8QGHU6 D WKHGHIHQFHRI¶*RRG)DLWK¶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¶YLRODWLRQ RI &RPPRQ $UW· 6LJQLILFDQWO\ WKHWHUP¶YLRODWLRQ·LWVHOILVUHSODFHGE\¶DJUDYHEUHDFK·RIWKH$UWLFOH7KH 0&$EDUVWKH86&RXUWVIURPFRQVLGHULQJH[WHUQDOVRXUFHVRIODZLHDQ\ OHJDO GRFXPHQW ZLWKLQ WKH SXUYLHZ RI D IRUHLJQ OHJDO V\VWHP RU ZLWKLQ ,QWHUQDWLRQDO/DZLQWKHLQWHUSUHWDWLRQRIWKHSURYLVLRQVRIWKLV$FW,WDOVR VD\V WKDW QR XQODZIXO HQHP\ FRPEDWDQW VXEMHFW WR WULDO E\ WKH 0LOLWDU\ &RPPLVVLRQ VKDOO KDYH DQ\ RI WKH ULJKWV JLYHQ WR VXFK SHUVRQV XQGHU WKH *HQHYD&RQYHQWLRQV F 1HZ)LHOG0DQXDOIRU0LOLWDU\,QWHUURJDWLRQV,Q6HSWHPEHUWKH86 'HSDUWPHQW RI WKH $UP\ SXEOLVKHG D QHZ )LHOG 0DQXDO IRU ¶,QWHOOLJHQFH FROOHFWLRQ RSHUDWLRQV¶ ZKLFK LQFOXGHV LQWHUURJDWLRQV 7KH 0DQXDO VWDWHV UHSHDWHGO\WKDWWRUWXUHRI¶DOOFDSWXUHGRUGHWDLQHGSHUVRQQHO¶LVSURKLELWHG DVLVFUXHOLQKXPDQRUGHJUDGLQJWUHDWPHQWRUSXQLVKPHQW DOEHLWLQLWV'7$ IRUP DQGWKDWDOOGHWDLQHHVPXVWEHWUHDWHGKXPDQHO\ G ([HFXWLYH 2UGHU DSSO\LQJ &RPPRQ $UW WR WKH &,$ 3URJUDP 7KH ([HFXWLYH2UGHUVLJQHGE\3UHVLGHQW%XVKLQ-XO\DSSO\LQJ&RPPRQ $UW DV XQGHUVWRRG E\ KLV DGPLQLVWUDWLRQ WR WKH &,$·V GHWHQWLRQ DQG 86&:DU&ULPHV ,ELG6XEVHFWLRQ F 6 E $ +HDGTXDUWHUV'HSDUWPHQWRI'HIHQFH86$UP\)0 +XPDQ,QWHOOLJHQFH&ROOHFWLRQ2SHUDWLRQV :DVKLQJWRQ'&6HSWHPEHU 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD LQWHUURJDWLRQ SURJUDP 7KH 2UGHU LQWHU DOLD SURKLELWV ¶ZLOOIXO DQG RXWUDJHRXV DFWV· SUHVXPDEO\ FRUUHVSRQGLQJ WR ¶2XWUDJHV XSRQ 3HUVRQDO 'LJQLW\· DV PHQWLRQHG LQ &RPPRQ $UW ¶WKDW DQ\ UHDVRQDEOH SHUVRQ FRQVLGHULQJWKHFLUFXPVWDQFHVZRXOGGHHPWKHDFWVWREHEH\RQGWKHERXQGV RI KXPDQ GHFHQF\ DV ZHOO DV SURYLGLQJ WKDW ¶GHWDLQHHV LQ WKH SURJUDP UHFHLYHWKHEDVLFQHFHVVLWLHVRIOLIH·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¶ZDU RQ WHUURU· 7KHVHKDYH UHVXOWHG LQ DGPLQLVWUDWLYH PHDVXUHV WDNHQDJDLQVW WKRVH IRXQG ´([HFXWLYH2UGHU,QWHUSUHWDWLRQRIWKH*HQHYD&RQYHQWLRQV&RPPRQ$UWDVDSSOLHGWRDSURJUDPRI'HWHQWLRQ DQG,QWHUURJDWLRQRSHUDWHGE\WKH&HQWUDO,QWHOOLJHQFH$JHQF\µ86*RYHUQPHQW3UHVV5HOHDVH-XO\RQ WKH:KLWH+RXVH:HEVLWHKWWSZZZZKLWHKRXVHJRYQHZVUHOHDVHVKWPODFFHVVHG$SULO 6 ( 6 I SURKLELWVDFWV¶LQWHQGHGWRGHQLJUDWH·DGHWDLQHH·VUHOLJLRQ 6 E LY 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD UHVSRQVLEOH DQG LQ GR]HQVRI FDVHVLQ &RXUWV 0DUWLDO ZLWKSXQLVKPHQWV RIXSWR WHQ \HDUV· LPSULVRQPHQW EHLQJ PHWHG RXW $ FDVH ZDV EURXJKW DJDLQVW D FLYLOLDQ &,$ FRQWUDFWRU ZRUNLQJ ZLWK ¶0LOLWDU\· ,QWHUURJDWRUV ZKR ZDV FKDUJHG ZLWK DVVDXOW LQ WKH FDVH RI D GHWDLQHH ZKR GLHG LQ FXVWRG\ LQ $IJKDQLVWDQ LQ -XQH ,Q 0DUFK D FLYLO VXLW ZDV EURXJKW E\ WKH $PHULFDQ &LYLO /LEHUWLHV 8QLRQ $&/8 DQGDQ1*2¶+XPDQ5LJKWV)LUVW¶RQEHKDOIRIHLJKWSHUVRQVZKR DFFRUGLQJWRWKHFRPSODLQWZHUHVXEMHFWHGWR¶7RUWXUHRURWKHU&UXHO,QKXPDQRU 'HJUDGLQJ 7UHDWPHQW RU 3XQLVKPHQW· LQ ,UDT DQG $IJKDQLVWDQ DJDLQVW 5XPVIHOG 'HIHQFH 6HFUHWDU\ DW WKDW WLPH ZKRVH SROLFLHV DQG SUDFWLFHV FDXVHG 3ODLQWLIIV·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¶HQHP\FRPEDWDQW·GHFLGHGRQWKHVDPHGD\DV5DVXOWKHLVVXHRIWRUWXUHFDPHXS LQDGLVVHQWLQJRSLQLRQ7KH866XSUHPH&RXUWVWDWHGWKDWXQGHUQRFLUFXPVWDQFHV FDQWRUWXURXVLQWHUURJDWLRQRIGHWDLQHHVEHMXVWLILHGHYHQLILWLVXVHGIRUH[WUDFWLQJ LQIRUPDWLRQ,WIXUWKHUVDLGWKDWWKHLQIRUPDWLRQVRREWDLQHGQHHGVWREHGRXEWHGIRU LWVDXWKHQWLFLW\ F 7KH0LOLWDU\&RPPLVVLRQV7KHLVVXHRYHUODSSLQJWKDWRIWKHGHWDLQHHV·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¶ZDURQWHUURU·GHWDLQHHV7KXVGHWDLQHHVZHUHWR EHWUHDWHGKXPDQHO\DWDOOWLPHVE\WKHDXWKRULWLHV 5DVXOY%XVK86 FLWHGLQ*LQEDU:K\QRW7RUWXUH7HUURULVWVS 5XPVIHOGY3DGLOOD86 FLWHGLQ*LQEDU:K\QRW7RUWXUH7HUURULVWVS )6XSSG ''& 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD 7KH /HJLVODWLRQV 3ROLFLHV DQG -XGLFLDO GHFLVLRQV KDYH SOD\HG D PDMRU UROH LQ UHVWULFWLQJ WKH XVH RI WRUWXURXV WHFKQLTXHV GXULQJ LQWHUURJDWLRQ RI WHUURU VXVSHFWV DQGRWKHUGHWDLQHHV(YHQWKRXJKWKHVHKDYHODLGGRZQDOHJDF\ RILPSOHPHQWLQJ DQDEVROXWHEDQRQWRUWXUHLQ$PHULFD\HWVHYHUDOORRSKROHVPDNHLWLPSRVVLEOHIRU WKH EDQ WR EH DFWXDOO\ LPSOHPHQWHG DQG SUDFWLFHG DW DOO OHYHOV 7KHUH LV VWLOO FRQIXVLRQ DV WR ZKLFK DFWV PD\ RU PD\ QRW FRQVWLWXWH WRUWXUH DQG ZKDW NLQG RI WULEXQDOVVKRXOGEHVHWXSWRGHWHUPLQHWKHGHWDLQHHV·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´7HUURULVWVµ 7KH VHOISURFODLPHG ´:DU &RXQVHOµ D JURXS RI DWWRUQH\V LQ WKH 86 DGPLQLVWUDWLRQ SURGXFHG D VHULHV RI OHJDO LQWHUSUHWDWLRQV 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD NQRZQDVWKH´7RUWXUH0HPRVµLQDQHIIRUWWRDEVROYHUHVSRQVLELOLW\IRUPHWKRGV WKDWFRXOGSRWHQWLDOO\ZDUUDQWLQGLFWPHQWIRUZDUFULPHV7KHVHPHPRVZHUHODWHU FRPSLOHG LQ D ERRN WLWOHG ´7RUWXUH 3DSHUV 7KH 5RDG WR $EX *KUDLE´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´2QWKH/HJDOLW\DQG3UDFWLFDOLW\RI86,QWHUURJDWLRQ3UDFWLFHV$QDQDO\VLVRIWKHWUHDWPHQWRI GHWDLQHHVDW*XDQWDQDPR%D\µ-RXUQDORI,QWHUQDWLRQDO$IIDLUV )HEUXDU\ YLD3URVSHFW:HEVLWHDFFHVVHG 0D\ ,ELG 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD &,$ 0DQXDO WLWOHG ´.8%$5. &RXQWHU,QWHOOLJHQFH ,QWHUURJDWLRQ´ 7KH PDQXDO VWDWHV WKDW WKHVH FRHUFLYH LQWHUURJDWLRQV XVXDOO\ \LHOG XQUHOLDEOH LQWHOOLJHQFH DQG WKHUHIRUHVKRXOGRQO\EHXVHGDVDILQDOUHVRUW7KH&,$·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·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´%ODFN/HWWHU$EXVH7KH86/HJDO5HVSRQVHWR7RUWXUHVLQFHµ,QWHUQDWLRQDO5HYLHZRIWKH5HG &URVV9RO1R 6HSWHPEHU SS 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD 7KH2IILFLDO,QTXLULHVVXIIHUHGIURPWKUHHGUDZEDFNV7KHVHDUH )LUVW WKH LQTXLU\ UHSRUWV FRQWDLQHG H[WHQVLYH FODVVLILHG VHFWLRQV ZKLFK VXSSRVHGO\FRQWDLQHGVHQVLWLYHLQIRUPDWLRQIRUXVHE\WKHH[HFXWLYHEUDQFKHVEXW ZHUH DFWXDOO\ LQFOXGHG WR EXU\ LQIRUPDWLRQ WR ZKLFK WKH SXEOLF VKRXOG KDYH KDG DFFHVV 6HFRQGWKHODUJHQXPEHURILQYHVWLJDWLRQVE\LQGLYLGXDOFRPPLVVLRQVKDGWKH HIIHFWRIGLOXWLQJWKHILQGLQJVRIDEXVHVDQGGHWHUULQJFRPSUHKHQVLYHLQGHSHQGHQW LQYHVWLJDWLRQV 7KLUGWKH&RPPLVVLRQLQYHVWLJDWLRQVZHUHQRWRIVXIILFLHQWO\KLJKOHYHOWR SHUPLWLQYHVWLJDWLRQVIURPWKHORZHUPRVWWRWKHXSSHUPRVWUDQNVRIRIILFHUV7KRVH FRQGXFWLQJ LQYHVWLJDWLRQV FRXOG RQO\ ILQG RXW DERXW SHUVRQQHO RI HTXDO RU ORZHU UDQN7KLVDEVROYHGWKHKLJKHURIILFLDOVFRPSOHWHO\ 'UDZEDFNVLQWKHLQYHVWLJDWLRQDQGLQGLFWPHQWSURFHVV 7KH +XPDQ 5LJKWV :DWFK DQG VHYHUDO RWKHU RUJDQL]DWLRQV KDYH SRLQWHG RXW WKDW PRUH WKDQ 86 PLOLWDU\ DQG FLYLOLDQ SHUVRQQHO ZHUH LPSOLFDWHG LQ SULVRQHU DEXVH LQYROYLQJ PRUH WKDQ GHWDLQHHV 2QO\ VRPH ORZ UDQN RIILFHUV ZHUHUHSRUWHGWRKDYHEHHQLQYROYHGDQGQRVXSHULRUV0RUHWKDQFDVHVZHUH UHSRUWHGLQZKLFK86$UP\RIILFHUVZHUHDOOHJHGWRKDYHLQYROYHGLQWRUWXUHDQG DEXVHDQGRQO\KDOIRIWKHVHFDVHVZHUHSURSHUO\LQYHVWLJDWHG,QWKRVHFDVHVZKHUH PLOLWDU\ LQYHVWLJDWRUV IRXQG VLJQLILFDQW HYLGHQFH RI DEXVH DQG LGHQWLILHG SHUSHWUDWRUVPLOLWDU\FRPPDQGHUVIUHTXHQWO\XVHGZHDNQRQMXGLFLDOGLVFLSOLQDU\ PHDVXUHV DV SXQLVKPHQW LQVWHDG RI SXUVXLQJ D FULPLQDO FDVH WKURXJK &RXUW 0DUWLDO8SWRRQO\RIWKHPRUHWKDQ86SHUVRQQHOZHUHVHQWHQFHGWR 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD LPSULVRQPHQW RXW RI ZKLFK RQO\ WHQ ZHUH JLYHQ SULVRQ VHQWHQFHV RI RQH \HDU RU PRUH2QO\WKUHHSHUVRQQHOZHUHFRQYLFWHGWKURXJK&RXUW0DUWLDO 8QODZIXOUHQGLWLRQV 2QH PHWKRG E\ ZKLFK WKH DGPLQLVWUDWLRQ PDGH XVH RI WRUWXUH DQG RWKHU LOOWUHDWPHQWWRREWDLQLQIRUPDWLRQIURPGHWDLQHHVZDVWRUHQGHURUWUDQVIHUWKHPWR RWKHU VWDWHV LQFOXGLQJ WKH SHUVRQ·V KRPH FRXQWU\ IRU LQWHUURJDWLRQ 8QOLNH H[WUDGLWLRQZKLFKLVQRUPDOO\DWUHDW\EDVHGSURFHVVWKDWPD\HQWDLOSURYLVLRQVWR HQVXUH WKH SURWHFWLRQ RI WKH ULJKWV RI WKH SHUVRQ EHLQJ WUDQVIHUUHG IRU FULPLQDO SURVHFXWLRQUHQGLWLRQLVW\SLFDOO\XQZDUUDQWHGDQGDOVRDQXQRIILFLDOSUDFWLFH7KH WHUP ´H[WUDRUGLQDU\ UHQGLWLRQµ KDG EHHQ XVHG LQ WKH FRQWH[W RI WKH $OYDUH] 0DFKDLQFDVHLQWKHVZKLFKLPSOLHGDEGXFWLRQRISHUVRQVUHVLGLQJRUKLGLQJ DEURDGWRSURVHFXWHWKHPDWKRPHEHWWHUNQRZQDV´UHQGLWLRQWRMXVWLFHµ3RVW WKHWHUPFDPHWREHDSSOLHGWRFDVHVRIUHQGLWLRQVIURPMXVWLFHZKHUHSHUVRQV ZRXOGEHVHQWZLWKRXWOHJDOVDIHJXDUGVWRDQRWKHUFRXQWU\WKDWKDGQRLQWHQWLRQRI IDLUO\SURVHFXWLQJWKHP $UW RI &$7 SURYLGHV WKDW QR VWDWH ´VKDOO H[SHO UHWXUQ µUHIRXOH¶ RU H[WUDGLWH D SHUVRQ WR DQRWKHU VWDWH ZKHUH WKHUH DUH VXEVWDQWLDO JURXQGV IRU EHOLHYLQJWKDWKHZRXOGEHLQGDQJHURIEHLQJVXEMHFWHGWRWRUWXUH´$UWDGGVWKDW IRUWKHSXUSRVHRIPDNLQJWKLVGHWHUPLQDWLRQ´WKHFRPSHWHQWDXWKRULWLHVVKDOOWDNH +XPDQ5LJKWV:DWFK$QQXDO5HSRUW³%\WKHQXPEHUV)LQGLQJVRIWKHGHWDLQHHDEXVHDQGDFFRXQWDELOLW\ SURMHFWµYLD+XPDQ5LJKWV:DWFKZHEVLWHKWWSZZZKUZRUJUHSRUWVXVFLWHGLQ-DPHV5RVV´%ODFN /HWWHU$EXVHµS ,QDJHQWVKLUHGE\WKH86'UXJ(QIRUFHPHQW$GPLQLVWUDWLRQ '($ DEGXFWHGIURP0H[LFR'U+XPEHUWR $OYDUH]0DFKDLQEHFDXVHRIKLVDOOHJHGUROHLQWKHNLGQDSSLQJWRUWXUHDQGPXUGHURI'($DJHQW(QULTXH &DPDUHQD6DOD]DUDQGEURXJKWKLPWRWKH86IRUWULDO86Y$OYDUH]0DFKDLQ86 FLWHGLQ-DPHV 5RVV´%ODFN/HWWHU$EXVHµS 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD LQWRDFFRXQWDOOUHOHYDQWFRQVLGHUDWLRQVLQFOXGLQJZKHUHDSSOLFDEOHWKHH[LVWHQFH LQWKH6WDWHFRQFHUQHGRIDFRQVLVWHQWSDWWHUQRIJURVVIODJUDQWRUPDVVYLRODWLRQV RIKXPDQULJKWV´ 5ROHRI0HGLFDO3HUVRQQHOGXULQJLQWHUURJDWLRQV $IWHU UHYHODWLRQV RI SDUWLFLSDWLRQ E\ SV\FKLDWULVWV DQG SV\FKRORJLVWV LQ LQWHUURJDWLRQ RI SULVRQHUV DW *XDQWi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´(QKDQFHG,QWHUURJDWLRQRI'HWDLQHHV'R3V\FKRORJLVWVDQG3V\FKLDWULVWV 3DUWLFLSDWH"µ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´'LSORPDWLF $VVXUDQFHV´ SURPLVHV IURP WKH UHFHLYLQJ VWDWHVWKDWLWZLOOWUHDWDOOGHWDLQHHVKXPDQHO\ 7KHMXGLFLDU\KDVEHHQWKZDUWHGLQLWVDWWHPSWVWRSURYLGHDGHTXDWHMXVWLFH DQGFRPSHQVDWLRQWRYLFWLPVRIWRUWXUHZKRKDYHEURXJKWWKHLUFDVHVEHIRUHWKH86 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD &RXUWV 7KH H[HFXWLYH KDV DOZD\V DUJXHGGXULQJ DQ\ SURFHHGLQJV WKDW DOO IDFWV LQ WKH LQVWDQW FDVH IDOO XQGHU WKH FDWHJRU\ RI ´6WDWH 6HFUHWV´ DQG WKHUHIRUH DUH QRW MXGLFLDOO\UHYLHZDEOH7KLVKDVSUHYHQWHGWKH&RXUWVLQGHYLVLQJDGHTXDWHUHPHGLHV IRU WKH VXIIHUHUV 7KH &RXUWV KRZHYHU KDYH WULHG WR UHVLVW WKHVH WDFWLFV IURP WKH H[HFXWLYH )RU LQVWDQFH LQ $UDU Y $VKFURIW WKH DGPLQLVWUDWLRQ KDG LQLWLDOO\ LQYRNHGWKH´6WDWH6HFUHWµ·GRFWULQHDQGVDLGWKDWVLQFHHYHU\IDFWLQWKHFDVHLVD VWDWH VHFUHW $UDU FRXOG QRW SURYH KLV FDVH DQG LW VKRXOG EH GLVPLVVHG %XW WKH )HGHUDO &RXUW -XGJH GLG QRW DFFHSW WKH GRFWULQH DV SUHVHQWHG DQG WRRN LW D VWHS IXUWKHU+HVDLGWKDWPHUHO\LQYRNLQJWKHGRFWULQHFRXOGSURYHHPEDUUDVVLQJWRWKH JRYHUQPHQWEHFDXVH´,WFRXOGEHFRQVWUXHGDVWKHHTXLYDOHQWRIDSXEOLFDGPLVVLRQ WKDWWKHDOOHJHGFRQGXFWKDGRFFXUUHGLQWKHPDQQHUFODLPHG´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´%ODFN/HWWHU$EXVHµ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´*ULHYRXV +XUW´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´$Q\ FRPPLVVLRQHG RIILFHU ZDUUDQW RIILFHU QRQFRPPLVVLRQHG RIILFHU RU DQ\ RWKHU SHUVRQ RI HTXLYDOHQW UDQN LQ WKH DUPHG IRUFHV PD\ LQ D GLVWXUEHG DUHD DUUHVW ZLWKRXW ZDUUDQW DQ\ SHUVRQ ZKR KDV FRPPLWWHG D FRJQL]DEOH RIIHQFH RU DJDLQVW ZKRPDUHDVRQDEOHVXVSLFLRQH[LVWVWKDWKHKDVFRPPLWWHGRULVDERXWWRFRPPLWD FRJQL]DEOH RIIHQFH DQG PD\ XVH VXFK IRUFH DV PD\ EH QHFHVVDU\ WR HIIHFW WKH DUUHVW´ 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD )XUWKHU VHFWLRQ RI WKH $)63$ IXUWKHU SURYLGHV ´$Q\ SHUVRQ DUUHVWHG DQGWDNHQLQWRFXVWRG\XQGHUWKLV$FWVKDOOEHPDGHRYHUWRWKHRIILFHULQFKDUJHRI WKHQHDUHVWSROLFHVWDWLRQZLWKWKHOHDVWSRVVLEOHGHOD\WRJHWKHUZLWKDUHSRUWRIWKH FLUFXPVWDQFHVRFFDVLRQLQJWKHDUUHVWµ 6HFWLRQ RI WKH $UPHG )RUFHV 6SHFLDO 3RZHUV $FW RI SURYLGHV WKDW ´1RSURVHFXWLRQVXLWRURWKHUOHJDOSURFHHGLQJVVKDOOEHLQVWLWXWHGH[FHSWZLWKWKH SUHYLRXV VDQFWLRQ RI WKH &HQWUDO *RYHUQPHQW DJDLQVW DQ\ SHUVRQ LQ UHVSHFW RI DQ\WKLQJ GRQH RU SXUSRUWHG WR EH GRQH LQ H[HUFLVH RI SRZHUV FRQIHUUHG E\ WKLV $FWµ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·V 1DWLRQDO +XPDQ 5LJKWV &RPPLVVLRQ 1+5& VXEPLWWHG LWV ILQGLQJV RI D PRQWKORQJ LQTXLU\ WR YHULI\ UHSRUWV RI KXPDQ ULJKWV DEXVHV E\ 6DOZD -XGXP DQG WKH 0DRLVW DUPHG JURXSV 7KH 1+5& IRXQG WKDW ERWK VLGHV ZHUH UHVSRQVLEOH IRU DEXVHV +XPDQ ULJKWV RUJDQL]DWLRQV FULWLFL]HG WKH ILQGLQJV VWDWLQJ WKDW WKH 1+5& KDG IDLOHG WR IXOO\LQYHVWLJDWHDEXVHVFRPPLWWHGE\WKH6DOZD-XGXP +XPDQ5LJKWV:DWFK:RUOG5HSRUW,QGLDYLD+XPDQ5LJKWV:DWFK:HEVLWH KWWSZZZXQKFURUJUHIZRUOGGRFLGIHDKWPODFFHVVHG)HEUXDU\ ,ELG ,ELG ,ELG 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD 6LPLODU UHSRUWV DV VWDWHG DERYH KDYH DOVR EHHQ JLYHQ E\ WKH $+5& DQG $6+5'&7KHFRPPRQIDFWRULQDOOUHSRUWVLVWKHPDVVLYHVFDOHRIYLROHQFH GXULQJ LQWHUQDO DUPHG FRQIOLFWV WDNLQJ RI KRVWDJHV DQG SULVRQHUV DQG H[WUDFWLRQ RI LQIRUPDWLRQ WKURXJK H[WUHPH IRUPV RI WRUWXUH DQG GHJUDGLQJ WUHDWPHQW ,,,(;7(172))8/),/0(172),17(51$7,21$/2%/,*$7,216 ,QGLD LV D GHPRFUDWLF FRXQWU\ ZKLFK EHOLHYHV LQ &RQVWLWXWLRQDO VXSUHPDF\ DQG VHSDUDWLRQ RI SRZHUV DPRQJ WKH RUJDQV RI WKH *RYHUQPHQW ,W LV DOVR D VLJQDWRU\ WR YDULRXV LQWHUQDWLRQDO LQVWUXPHQWV E\ YLUWXH RI LWV REOLJDWLRQV DW WKH LQWHUQDWLRQDO OHYHO $UW RI WKH ,QGLDQ &RQVWLWXWLRQ WDONV DERXW WKH SRZHUV RI 3DUOLDPHQWWRVLJQDQGUDWLI\LQWHUQDWLRQDOWUHDWLHVDQGDJUHHPHQWVDQGPDNHWKHPD SDUW RI WKH PXQLFLSDO ODZV E\ HQDFWLQJ VXLWDEOH OHJLVODWLRQV 7KLV SURYLVLRQ ZDV DGGHG WR HQIRUFH YDULRXV SURYLVLRQV RI LQWHUQDWLRQDO LQVWUXPHQWV ZLWKLQ WKH GRPHVWLF OHJDO IUDPHZRUN 7KHUHIRUH WKLV ELQGV WKH ,QGLDQ OHJDO V\VWHP WR WKH SULQFLSOHV DQG PDQGDWHV RI ,QWHUQDWLRQDO ODZ $UW LV DQ H[WUHPHO\ LPSRUWDQW FRQVWLWXWLRQDO PDQGDWH LQ WKH FRQWH[W RI WKH IDFW WKDW ,QGLD LV D PHPEHU RI WKH ,QWHUQDWLRQDO&RPPXQLW\DQGOLNHRWKHUQDWLRQVKDVFHUWDLQGXWLHVWRIXOILOO ,QSXUVXDQFHRILWVLQWHUQDWLRQDOREOLJDWLRQV,QGLDDOVRKDVDGXW\WRHQVXUH WKDW WKH DEVROXWH SURKLELWLRQ RI WRUWXUH WKDW KDV EHFRPH D SDUW RI FXVWRPDU\ LQWHUQDWLRQDOODZ LV LPSOHPHQWHG ZLWKLQ WKH GRPHVWLFV\VWHP DV ZHOO 7KH 5RPH 6WDWXWHWKH*HQHYD&RQYHQWLRQVDQGWKH&$7KDYHFRPHDORQJZD\LQHQVXULQJ WKDWWKHHYLOSUDFWLFHRI7RUWXUHGXULQJLQWHUURJDWLRQRI32:V LVGRQHDZD\ZLWK DQG DQ DEVROXWH EDQ LV LPSRVHG RQ WKLV DFWLYLW\ ,W ZDV LPSHUDWLYH WKDW ,QGLD EHFDPHDSDUW\WRWKHVHWKUHHLQVWUXPHQWVZKLFKQHHGWREHUHDGWRJHWKHULQRUGHU 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD WRXQGHUVWDQGWKHWHQHWVRIWKHXQLYHUVDOEDQRQWRUWXUH7LOOGDWH,QGLDKDVEHFRPH DSDUW\WRWKH*HQHYD&RQYHQWLRQVDQGWKH&$7DQWLWVRSWLRQDOSURWRFRO ,W LV QRWHZRUWK\ WKDW ,QGLD LV VWLOO QRW D SDUW\ WR WKH 5RPH 6WDWXWH DQG WKH $GGLWLRQDO3URWRFROVWRWKH*HQHYD&RQYHQWLRQV7KHVHWZRLQVWUXPHQWVGHDOZLWK ,QGLYLGXDO &ULPLQDO 5HVSRQVLELOLW\ IRU WKH SUHVFULEHG YDULHWLHV RI ,QWHUQDWLRQDOFULPHVDQG &RQGXFWRIZDUIDUHDQGKRVWLOLWLHVGXULQJLQWHUQDWLRQDODQGQRQLQWHUQDWLRQDO DUPHG FRQIOLFWV LQFOXGLQJ KXPDQH WUHDWPHQW RI GHWDLQHHV DQG 32:V UHVSHFWLYHO\ 8QWLOWKHWLPHWKHUHPDLQLQJREOLJDWLRQVDUHIXOILOOHG,QGLDFDQQRWKRSHWRLPSRVH DQ DEVROXWH EDQ DV GLUHFWHG E\ WKH ,QWHUQDWLRQDO KXPDQ ULJKWV DQG KXPDQLWDULDQ GRFXPHQWV ,9&5,7,&$/$1$/<6,62)7+((;,67,1*)5$0(:25.$*$,167 725785286,17(552*$7,216 $VREVHUYHGLQWKHHDUOLHUVHFWLRQVWKHUHH[LVWDQXPEHURIORRSKROHVLQWKH H[LVWLQJ OHJDO IUDPHZRUN LQ ,QGLD IRU WKH SXUSRVH RI FRPEDWLQJ 7RUWXURXV ,QWHUURJDWLRQV7KHVHORRSKROHVQHHGWREHUHPRYHGLQRUGHUWRHQVXUHDVPRRWKHU OHJDOV\VWHPZKLFKZRXOGEHFDSDEOHRISXQLVKLQJWKHRIIHQGHUVDQGIXOILOOLQJWKH REOLJDWLRQV RI WKH FRXQWU\ WRZDUGV FRPSO\LQJ ZLWK WKH LQWHUQDWLRQDO IUDPHZRUN 6RPHRIWKHFULWLFLVPVWKDWKDYHEHHQOHYHOHGFDQEHODLGGRZQDVIROORZV $'HIHFWLYH3ROLWLFDO6WDQG ,QGLD FDQQRW VHH WKH REMHFWLYHV EHKLQG WKH DGRSWLRQ RI LQWHUQDWLRQDO LQVWUXPHQWV OLNH WKH 5RPH 6WDWXWH 2SWLRQDO 3URWRFRO WR &$7 DQG 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD $GGLWLRQDO3URWRFROVWRWKH*HQHYD&RQYHQWLRQV7KHIUDPHUVRI WKHVH LQVWUXPHQWV LQWHQGHG WR FUHDWH REOLJDWLRQV IRU FRXQWULHV WR LQWURGXFH VXLWDEOH SURYLVLRQV ZLWKLQ WKH PXQLFLSDO ODZV WKDW FDQ GHDO HIIHFWLYHO\ ZLWKWKHZLGHVSUHDGSUREOHPRIFXVWRGLDOWRUWXUH ,QGLD KDV SUHYHQWHG 81VSRQVRUHG PHFKDQLVPV OLNH WKH 81 6SHFLDO 5DSSRUWHXU RQ 7RUWXUH DQG WKH 81 &RPPLWWHH DJDLQVW WRUWXUH IURP YLVLWLQJWKHFRXQWU\WRFDUU\RXWLQVSHFWLRQVRIDOOGHWHQWLRQFHQWUHVDQG SULVRQV 7KLV KDV OHG WR IXUWKHU DJJUDYDWLRQ RI WKH SUREOHP DQG WLOO GDWHQRHIIHFWLYHVROXWLRQKDVEHHQIRXQGEHFDXVHWKHUHDUHIHDUVWKDWD ORWRIXQZDQWHGLQIRUPDWLRQPD\EHXQUDYHOHG 9DULRXVPLOLWDQWDQGLQVXUJHQWRXWILWVKDYHEHHQFRQVWDQWO\HQJDJLQJLQ LQWHUQDODUPHGFRQIOLFWVZLWKWKH*RYHUQPHQWIRUFHVFRQWUROOHGE\ERWK &HQWUDO DQG 6WDWH *RYHUQPHQWV 0RVW RI WKHP KDYH GHPDQGV IRU D VHSDUDWH VWDWH EDVHG RQ WKH HWKQLF OLQHV RU HYHQ JUHDWHU DXWRQRP\ WR H[HUFLVH FRQWURO RYHU WKHLU UHVSHFWLYH WHUULWRULHV 0DMRU RXWILWV LQFOXGH WKH 0DRLVWV WKH - . /LEHUDWLRQ )URQW -./) WKH %2'2 WKH 8/)$RSHUDWLQJLQWKH1RUWK(DVW7KH,QGLDQ*RYHUQPHQWKDVDOZD\V UHIXVHG WR KROG GLDORJXHV ZLWK WKHVH $2*V GXH WR ZKLFK WKH\ KDYH ZUHDNHGKDYRFLQDOPRVWDOOSDUWVRIWKHFRXQWU\ $ 6WDWHPHQW UHOHDVHG E\ WKH $VLDQ +XPDQ 5LJKWV &RPPLVVLRQ RQ WK -XQH ZKLFK ZDV WLWOHG ´,1',$ :LGHVSUHDGXVHRI&XVWRGLDO7RUWXUHLVDWLFNLQJWLPHERPE´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´1HHGIRUD1DWLRQDO /DZIRUWKH3UHYHQWLRQRI7RUWXUH´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´7KH,QWHUQDWLRQDO/DZRI7RUWXUH)URP8QLYHUVDO3URVFULSWLRQWR(IIHFWLYH $SSOLFDWLRQDQG(QIRUFHPHQWµ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´9LVLWVE\+XPDQ5LJKWV0HFKDQLVPVDV D PHDQVRI JUHDWHU SURWHFWLRQIRUSHUVRQV GHSULYHGRIWKHLUOLEHUW\µ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·5LJKWV $&+35 ,Q 7KH $IULFDQ &RPPLVVLRQ RQ +XPDQ DQG 3HRSOHV· 5LJKWV DSSRLQWHGD6SHFLDO5DSSRUWHXURQ3ULVRQVDQG&RQGLWLRQVRI'HWHQWLRQLQ$IULFD ZKR LV PDQGDWHG WR YLVLW ZLWK WKH FRQVHQW RI WKH 6WDWH FRQFHUQHG SODFHV RI GHWHQWLRQ LQ $IULFD LQ RUGHU WR DVVHVV WKH JHQHUDO FRQGLWLRQV RI GHWHQWLRQ DQG WKH WUHDWPHQWRIGHWDLQHHV )RUDFRPSOHWHOLVWRIYLVLWVPDGHE\WKH&37DQGDQDFFRXQWRIDOOLWVDFWLYLWLHVVHHKWWSZZZFSWFRHLQW 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD LLL&ULWLFDODQDO\VLVRIWKHUROHRIDOOPHFKDQLVPVLQWKHSURWHFWLRQRISHUVRQV XQGHUGHWHQWLRQ 7KH YDULRXV ,QWHUQDWLRQDO DQG 5HJLRQDO PHFKDQLVPV DV GLVFXVVHG DERYH KDYH SOD\HG D VLJQLILFDQW UROH LQ WKH SURWHFWLRQ RI SHUVRQV XQGHU DQ\ IRUP RI GHWHQWLRQ DQG VXEVHTXHQWO\ SUHYHQWLRQ RI WKH XVH RI WRUWXURXV WHFKQLTXHV DJDLQVW WKHP5HJXODUDQG$G+RFYLVLWVDUHFRQGXFWHGDWWKHSODFHVRIGHWHQWLRQZLWKWKH IROORZLQJREMHFWLYHV ,PSURYHPHQWRIWKHFRQGLWLRQVRIGHWHQWLRQ 3UHYHQWLRQRI7RUWXUHDWDOOWLPHVLQFOXGLQJVHVVLRQVRILQWHUURJDWLRQ 1HJRWLDWLRQV ZLWK WKH UHVSHFWLYH *RYHUQPHQWV WR HQVXUH EHWWHU OLYLQJ FRQGLWLRQVDQGLISRVVLEOHWLPHO\UHOHDVHRIWKH'HWDLQHHVDQG32:V 6XEPLVVLRQRIUHSRUWVWRWKH81DQGRWKHUSDUHQWERGLHVDWUHJXODULQWHUYDOV IRUWKHSXUSRVHRIIRUPXODWLRQRIDQLPPHGLDWHSODQRIDFWLRQDLPLQJIRUWKH DOOURXQGEHWWHUPHQWRIWKRVHXQGHUGHWHQWLRQ 3XEOLFDWLRQRIDOOUHSRUWVWRFUHDWHDQGLQFUHDVHDZDUHQHVVDERXWWKHSOLJKWRI WKRVHGHWDLQHGIRULQGHILQLWHSHULRGVDQGWRKHOSLQEXLOGLQJXS,QWHUQDWLRQDO SUHVVXUHRQWKHFRXQWULHVLQZKRVHWHUULWRULHVGHWDLQHHVDQG32:V PD\EH ORGJHG 9DULRXVRUJDQL]DWLRQV WRFRRUGLQDWHDPRQJ WKHPVHOYHVDQGEULQJRXW MRLQW VWUDWHJLHV RI DFWLRQ DJDLQVW WKRVH FRXQWULHV %RWK VLJQDWRULHV DQG 1RQ VLJQDWRULHV WR ,QWHUQDWLRQDO DQG 5HJLRQDO LQVWUXPHQWV ZKR FRQWLQXH WR LQGXOJHLQEODWDQWYLRODWLRQVRIWKHLUREOLJDWLRQVWRSURWHFWWKHEDVLFULJKWVRI SHRSOH7KHVHREOLJDWLRQVPD\VWHPIURPELQGLQJLQWHUQDWLRQDOKXPDQULJKWV LQVWUXPHQWV ,QYHVWLJDWH DQG HQWHUWDLQ VSHFLILF FRPSODLQWV RI WRUWXUH DJDLQVW GHWDLQHHV ZKR PLJKW EH IDFLQJ SHFXOLDU FLUFXPVWDQFHV LQ GLIIHUHQW FRXQWULHV 7KLV 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD UHTXLUHVWKHDELOLW\RQWKHSDUWRIWKHVHRUJDQL]DWLRQVWRZLWKVWDQGHQRUPRXV SROLWLFDOSUHVVXUH ,Q VSLWH RI KDYLQJ FOHDUFXW JRDOV PDQ\ GUDZEDFNV KDYH EHHQ QRWLFHG LQ WKH ZRUNLQJRIWKHVHRUJDQL]DWLRQVDQGPHFKDQLVPV7KH\FDQEHH[SODLQHGDVIROORZV 6SHFLILF3UREOHPVRIVRPHPHFKDQLVPV 81&200,77(($*$,167725785( (VWLPDWHVLQGLFDWHWKDWWKHPHWKRGVDGRSWHGE\WKH&RPPLWWHHDJDLQVW7RUWXUHDUH VLPSO\ QRW HIIHFWLYH LQ FRXQWHUDFWLQJ WKH SUREOHPV RI SRZHU DQG DXWKRULW\ JHQHUDWHG E\ WKRVH ZKR URXWLQHO\ SUDFWLFH WRUWXUH 7KH &RPPLWWHH·V FULWLFDO ZHDNQHVV LV WKH IXWLOLW\ JHQHUDWHG E\ WKH FRPELQDWLRQ RI LWV VWUXFWXUHV DQG SURFHGXUHV ,WV VWUXFWXUH FRPSULVHV D JURXS RI H[SHUWV WKRURXJKO\ YHWWHG E\ WKH VWDWHV SDUWLHV WKHPVHOYHV SUHVHQWLQJ D FRQIOLFW RI LQWHUHVW IRU WKRVH ZKRVH LPSDUWLDOLW\LVPRVWYLWDOWRWKHSURFHVV:KLOHWKHEXUHDXFUDWLFFXOWXUHUHTXLUHGE\ WKH &RPPLWWHH·V OLQNV ZLWK WKH 81 EULQJV ZLWKLWVXFK DVVHWV DV SURIHVVLRQDOLVP EURDGGLVFUHWLRQDQGZLGHVSUHDGUHVSHFWWKLVEXUHDXFUDF\DOVRKDVGLVDGYDQWDJHV )RUH[DPSOHRYHUEHDULQJVWDWHGRPLQDQFHWKUHDWHQVWKH&RPPLWWHH·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´3URWHFWLRQRI'HWDLQHHV,&5&DFWLRQEHKLQGEDUVµ,QWHUQDWLRQDO5HYLHZRI5HG&URVV 9RO1R SS )UDQFRLV%XJQLRQ,QWHUQDWLRQDO&RPPLWWHHRIWKH5HG&URVVDQGWKH3URWHFWLRQRI:DU9LFWLPV *HQHYD,&5& 3XEOLFDWLRQV 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD ZLWKLQLQGLYLGXDOFRXQWULHV,WFRQWLQXHGWRFDUU\RXWWKHVDPHW\SHRIDFWLYLWLHV LQDLGRIGHWDLQHHVEXWLPSURYHGLWVZRUNLQJPHWKRGV 'XULQJWKHSHULRGIURPWRFKDUDFWHUL]HGE\DQLQWHQVLILFDWLRQRI &ROG :DU FRQIOLFWV DQG WKH HQG RI ZDUV RI GHFRORQL]DWLRQ WKH ,&5&·V DUHDV RI RSHUDWLRQ LQFUHDVHG DQG LWV DFWLYLWLHV RQ EHKDOI RI SHUVRQV GHWDLQHG IRU VHFXULW\ UHDVRQVRUVRFDOOHGSROLWLFDOGHWDLQHHVZHUHH[SDQGHG7KH,&5&YLVLWHGWKHPLQ WKHLU SODFHV RI GHWHQWLRQ UHJLVWHUHG WKHP IDLUO\ V\VWHPDWLFDOO\ DQG ZRUNHG WR UHVWRUH FRQWDFW EHWZHHQ WKHP DQG WKHLU IDPLOLHV ,W DOVR VRXJKW WR DGGUHVV WKH SUREOHP RI IRUFLEOH GLVDSSHDUDQFHV DQG WRRN D EURDGHU YLHZ LQ JHQHUDO E\ DQDO\VLQJ PRUH FORVHO\ WKH GHWDLQHHV·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´DOOGHWDLQHHVµ DSSURDFK DQG RI WKH NLQGV RI SUREOHPV WR ZKLFK LW VRXJKW WR UHVSRQG VWUXFWXUDO RUJDQL]DWLRQDO IRRG HPHUJHQFLHV HWF $W WKH VDPH WLPH PDQ\ DUHDV ZHUH H[SHULHQFLQJ SHULRGV RI HWKQLFFOHDQVLQJLQZKLFKDFOHDUGHVLUHWRH[WHUPLQDWHSDUWRIWKHSRSXODWLRQZDV -DFTXHV0RUHLOORQ7KH,QWHUQDWLRQDO&RPPLWWHHRIWKH5HG&URVVDQGWKH3URWHFWLRQRI'HWDLQHHV+HQU\ 'XQDQW,QVWLWXWH/·$JHG·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´ZDU RQ WHUURUµ JOREDO DQG ORFDO HOHPHQWV DUH RIWHQ LQWHUPLQJOHG UHTXLULQJ DQ HYHQJUHDWHUFRQVLVWHQF\LQWKHDSSURDFKDGRSWHGDQGWKHDFWLRQWDNHQ 'HYHORSPHQWRIWKHOHJDOIUDPHZRUNRIVXUYHLOODQFHRIWKRVHXQGHUGHWHQWLRQDQG WKH,&5&·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·V H[SHULHQFH WKH &RQYHQWLRQV LQWURGXFHG D SURFHGXUH IRU YLVLWV IURP ZKLFK QR GHURJDWLRQ LV DOORZHG 7KLV SURFHGXUH DQG WKH UHODWHG FRQGLWLRQVZHUHWRVHWWKHVWDQGDUGIRUWKH,&5&LQDOOW\SHVRIVLWXDWLRQVDQGDUH VWLOOVFUXSXORXVO\DSSOLHGWRGD\7KHWZR3URWRFROVDGGLWLRQDOWRWKH*HQHYD &RQYHQWLRQVVSHFLI\WKHIXQGDPHQWDOJXDUDQWHHVWRZKLFKGHWDLQHHVDUHHQWLWOHG $FFRUGLQJWR$UWLFOHRIWKH*HQHYD&RQYHQWLRQRILQWHUYLHZVPD\EHKHOGDVDJHQHUDOUXOHZLWKRXW ZLWQHVVHV HPSKDVLVDGGHG 7KLVUHVXOWHGLQSDUWLFXODUIURPWKH,&5&·VYLVLWLQ-XQHWRWKH7KHUHVLHQVWDGWFDPSD´PRGHOµ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·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µ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·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´ZDV YHU\ GLVWXUEHG WR UHFHLYH UHSRUWV ZKLFK DSSHDUHG WR LQGLFDWH D UHHPHUJHQFH RI WKH SDWWHUQRIHQIRUFHGDQGLQYROXQWDU\GLVDSSHDUDQFHVWKDWKDVVRZUDFNHG6UL/DQND LQWKHSDVWµ +H VSHFLILFDOO\ UHIHUUHGWR FRPSODLQWV RI 7DPLO \RXWKVEHLQJ SLFNHG XS E\ ZKLWH YDQV DOOHJHGO\ ZLWK LQYROYHPHQW E\ WKH VHFXULW\ IRUFHV ,Q LWV UHSRUW WR WKH +XPDQ 5LJKWV &RXQFLO WKH :RUNLQJ *URXS RQ (QIRUFHG DQG ,QYROXQWDU\ 'LVDSSHDUDQFHV UHPDUNHG WKDW LW ´UHPDLQV JUDYHO\ FRQFHUQHG DW WKH LQFUHDVHLQUHSRUWHGFDVHVRIHQIRUFHGGLVDSSHDUDQFHVLQWKHFRXQWU\µ ,Q VSLWH RI EHLQJ EDUUHG IURP YLVLWLQJ WKH PDLQ SODFHV RI GHWHQWLRQ IRU GLVSODFHG SHUVRQV 7KH ,&5& WULHG LWV OHYHO EHVW WKURXJK WDONV ZLWK WKH &HQWUDO *RYHUQPHQWDQGWKH1RQ6WDWHIRUFHV LQYROYHGLQWKHDUPHGFRQIOLFW WRPRQLWRU WKHOLYLQJFRQGLWLRQVRIWKHGHWDLQHHVKHOGE\ERWKVLGHV$ORQJZLWKDWWHPSWLQJWR DUUDQJHIRUIDPLO\YLVLWVWRWKHGHWDLQHHVWKH\XUJHGERWKVLGHVWRSURYLGHWKHEDVLF PLQLPXP QHFHVVLWLHV WR DOO GHWDLQHHV DQG WUHDW WKHP ZLWK KXPDQLW\ DQG GXH FRQVLGHUDWLRQ ,VUDHO 7KH ,&5& KDV KHOG WDONV ZLWK WKH DXWKRULWLHV LQ ,VUDHO DV ZHOO DV ZLWK WKH GHWDLQHHV DQG KDV IDFLOLWDWHG IDPLO\ YLVLWV DW UHJXODU LQWHUYDOV HVSHFLDOO\ WR WKH IHPDOH SULVRQHUV ZKR KDYH EHHQ LQ GHWHQWLRQ IRU ORQJ SHULRGV RI WLPH 7KLV ZDV 7RUWXURXV,QWHUURJDWLRQRI3ULVRQHUVRI:DU*OREDODQG,QGLDQSHUVSHFWLYHVZLWKVSHFLDO UHIHUHQFHWR86$DQG,QGLD PDLQO\GRQHDVDUHPHGLDOVWHS5HSRUWVKDGEHHQFRPLQJLQDERXWWKHFRQWLQXRXV H[SORLWDWLRQ DQG WRUWXUH RI )HPDOH 3DOHVWLQLDQ 'HWDLQHHV E\ WKH ,VUDHOL DXWKRULWLHV$SDUWIURPWKLVWKH,&5&WUDQVSRUWHGWKHGHWDLQHHVIURPWKHLUSODFH RIUHOHDVHWRWKHFURVVLQJSRLQWVRI%HLWXQ\DLQWKH:HVW%DQN DQG(UH]LQ*D]D ,&5& VWDII KDYH EHHQ PRQLWRULQJ WKH SURFHVV DW WKH FURVVLQJ SRLQWV DQG DW 2IHU SULVRQ,&5&GHOHJDWHVLQWHUYLHZHGHDFKGHWDLQHHLQSULYDWHWRFRQILUPWKDWWKH\ ZHUH QRW EHLQJ VHQWEDFN WR DQ\ ORFDWLRQDJDLQVW WKHLU ZLOO 7KH ,&5& DFWHG DV D QHXWUDOLQWHUPHGLDU\ZLWKWKHIXOODJUHHPHQWRIDOOFRQFHUQHGSDUWLHV ,UDT*XDQWDQDPR%D\DQG$IJKDQLVWDQ 7KH86JRYHUQPHQWKDVKHOGPDQ\SHRSOHDWWKHVHWKUHHSODFHVZKRKDYH EHHQVXVSHFWHGRIEHLQJLQYROYHGLQWKHLQFLGHQWRULQWKHWZRZDUVLQ,UDTDQG $IJKDQLVWDQ7KH,&5&KDVSOD\HGDQDFWLYHUROHDWDOOWKHVHSODFHVWRHQVXUHWKDW WKH GHWDLQHHV DUH JLYHQ DO IXQGDPHQWDO JXDUDQWHHV LQFOXGLQJ PHHWLQJ IDPLO\ PHPEHUV GXULQJ WKH SHULRG RI GHWHQWLRQ 7KHUHIRUH LWV HIIRUWV QHHG WR EH VWXGLHG VHSDUDWHO\ ,UDT7KH,&5&KDVEHHQYLVLWLQJGHWDLQHHVKHOGE\WKH8QLWHG6WDWHVLQ,UDTVLQFH WKH EHJLQQLQJ RI WKH DUPHG FRQIOLFW LQ 6LQFH WKHQ ,&5& GHOHJDWHV KDYH FRQGXFWHG D WRWDO RI YLVLWV WR 86 SODFHV RI GHWHQWLRQ LQ WKH FRXQWU\ 7KH RUJDQL]DWLRQ FXUUHQWO\ FRQGXFWV UHJXODU YLVLWV WR WZR WKHDWUH LQWHUQPHQW IDFLOLWLHV ORFDWHG QHDU %DJKGDG &DPS &URSSHU DQG &DPS 7DML ZKHUH LWV GHOHJDWHV KDYH ´7RUWXUHRI3DOHVWLQLDQ)HPDOH3ULVRQHUVµ6XPRXG1HZV5HOHDVH1RYHPEHURQ6XPRXG:HEVLWH KWWSZZZVXPRXGRUJ7RUWXUHRI3DOHVWLQLDQ)HPDOH3ULVRQHUVKWPDFFHVVHG$SULO ´,VUDHODQGWKHRFFXSLHGWHUULWRULHV,&5&IDFLOLWDWHVUHWXUQRIUHOHDVHG3DOHVWLQLDQGHWDLQHHVWR*D]DDQG:HVW %DQNµ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´3HUVRQVGHWDLQHGE\WKH86LQUHODWLRQWRDUPHGFRQIOLFWDQGWKHILJKWDJDLQVWWHUURULVP7KHUROHRIWKH,&5&µ ,&5&1HZV5HOHDVH2FWREHURQ,&5&:HEVLWH KWWSZZZLFUFRUJ86B'HWDLQHHV2SHQ'RFXPHQWKWP ,&5&$QQXDO5HSRUW´5HSRUWRIWKH,QWHUQDWLRQDO&RPPLWWHHRIWKH5HG&URVVRQWKH7UHDWPHQWE\WKH &RDOLWLRQ)RUFHVRI3ULVRQHUVRI:DUDQGRWKHU3URWHFWHG3HUVRQVLQ,UDTGXULQJ$UUHVW,QWHUQPHQWDQG ,QWHUURJDWLRQµ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´7KH,&5&DFWLYLWLHVRQWKH,QGLDQ6XEFRQWLQHQWIROORZLQJSDUWLWLRQµ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·VDFFRXQWRIKLVPLVVLRQWR,QGLDDQQH[WRWKH'HOHJDWLRQV&RPPLVVLRQ·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´+DVWKH,&--XULVGLFWLRQLQWKH32:VFDVH"µ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´&ULPHV RI $JJUHVVLRQµ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·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´ILWQHVV IRU LQWHUURJDWLRQµ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´ZKHUH WKHUH DUHVXEVWDQWLDOJURXQGVIRUEHOLHYLQJWKDWKHZRXOGEHLQGDQJHURIEHLQJVXEMHFWHG WRWRUWXUHµ7KHSULQFLSOHRIQRQUHIRXOHPHQWPXVWEHXSKHOGLQDOOFLUFXPVWDQFHV LUUHVSHFWLYH RI ZKHWKHU WKH LQGLYLGXDO FRQFHUQHG KDV FRPPLWWHG FULPHV DQG WKH VHULRXVQHVV DQG QDWXUH RI WKRVH FULPHV $V\OXP GHWHUPLQDWLRQ SURFHGXUHV VKRXOG SD\SDUWLFXODUDWWHQWLRQWRDYRLGLQJWKHUHWUDXPDWL]DWLRQRIDSSOLFDQWV T 7KHMXULVSUXGHQFHRIPDNLQJDGLVWLQFWLRQEHWZHHQ´7RUWXUHµDQG´2WKHU&UXHO ,QKXPDQ RU 'HJUDGLQJ 7UHDWPHQW RU 3XQLVKPHQWµ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´$GGUHVVLQJ&XVWRGLDO9LROHQFH5HFRPPHQGDWLRQVWRWKH1+5&´SUHVHQWHGDWWKH 6HPLQDURQ´5ROHRI1*2 VLQVXSSRUWRI1+5&LQEHWWHUSURPRWLRQDQGSURWHFWLRQRI+XPDQ5LJKWVµ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·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´&ULPHVRI$JJUHVVLRQ´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uy your books fast and straightforward online - at one of the world’s fastest growing online book stores! Environmentally sound due to Print-on-Demand technologies. Buy your books online at www.get-morebooks.com Kaufen Sie Ihre Bücher schnell und unkompliziert online – auf einer der am schnellsten wachsenden Buchhandelsplattformen weltweit! Dank Print-On-Demand umwelt- und ressourcenschonend produziert. Bücher schneller online kaufen www.morebooks.de VDM Verlagsservicegesellschaft mbH Heinrich-Böcking-Str. 6-8 D - 66121 Saarbrücken Telefax: +49 681 93 81 567-9 info@vdm-vsg.de www.vdm-vsg.de

RELATED PAPERS

RELATED TOPICS

Log In

LLM dissertation E-book.pdf

LLM dissertation E-book.pdf

Related Papers

RELATED PAPERS

RELATED TOPICS