Corruption by heads of government is not a new problem. However, it has more serious consequences today when practiced by dictators or authoritarian leaders. The mobility of wealth prevents effective recovery of the assets; the size of the stolen funds has major economic consequences for the country’s economic development. The problems that new governments experience in recovering corruption proceeds involve matters that are sensitive in terms of politics, law, and international relations. Ferdinand Marcos was President of the Republic of the Philippines from November 1965 until his flight in February 1986. Marcos declared martial law and imposed an unjust dictatorship in 1972. Marcos, his wife, and their associates probably looted, diverted, and laundered at least 5 billion dollars in public assets that represented foreign economic and military assistance and kickbacks from public works contracts in the Philippines. Marcos used an extensive and complex system of laundering money through Swiss and offshore banks. Swiss law, practice, and other factors posed major obstacles to recovering the hidden wealth. The Philippine Government identified the Swiss bank accounts from documents left behind by the deposed president. A Filipino banker devised a plan to recover the Marcos fortune. The banks admitted to the accounts’ existence only after awareness of the overwhelming evidence about them. Changes in Swiss law since 1986 should affect the acceptance of dictators’ funds in Switzerland; the laws will be important in all future cases of corruption involving heads of foreign governments. Footnotes