Tracing

Definition - What does Tracing mean?

Tracing refers to the process of following something back to its original source.

In the context of the law, tracing can refer to either tracking information back to a document, or tracking an asset that has been wrongly taken. If tracing occurs for lost assets, the goal is generally to recover them or a substitute for them.

Justipedia explains Tracing

Tracing often occurs when fraud has taken place. In such cases, the assets have to be tracked down and located. Sometimes, the assets have been converted into something else. For example, if money is taken from a bank account, then that money may be used to purchase diamond earrings or something else. With tracing, however, if the original owner of the money can prove that they were the original owner of the assets, and that they have a claim of restitution, then they will be given the diamonds or the proceeds from the sale of the diamonds.

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