|We all know, thanks to the Corruption Perceptions Index (CPI) made yearly by Transparency International, that the poorer countries of the world enjoy the reputation to be the most corrupt and the richer ones are integer! Thanks to studies as made by GFI which looked into the facts regarding ‘illicit financial flows’ we know better. Trillions are drained to and by rich countries, firms and individuals. No wonder that the poor remain poor and the rich become richer. There are enough good recommendations on what to do! See below:
Public registries, Anti-money laundering laws and actions, MNCs should report country-by-country, International exchange of tax information, Curtail mis-invoicing, Governments should sign and implement the Addis Tax Initiative. Helas, on the contrary, public policies seem to be quite ignorant of these proposals and do not implement sufficiently these recommendations. (MvH).
|Illicit Financial Flows (global, May 1, 2017, source: GFI – Global Financial Integrity)|
|FOR IMMEDIATE RELEASE May 1, 2017
New Study: Illicit Financial Flows in Developing Countries Large and Persistent
US$620 billion-970 billion drained from developing world in 2014, primarily through trade fraud
Illicit inflows similarly harmful and estimated at $1.4-$2.5 trillion in 2014
Combined, illicit outflows and inflows accounted for 14.1-24.0 percent of total developing country trade over 2005-2014
Sub-Saharan Africa Still Suffers Largest Illicit Outflows as percent of GDP
WASHINGTON, DC – Illicit financial flows (IFFs) from developing and emerging economies kept pace at nearly US$1 trillion in 2014, according to a study released today by Global Financial Integrity (GFI), a Washington, DC-based research and advisory organization. The report pegs illicit financial outflows at 4.2-6.6 percent of developing country total trade in 2014, the last year for which comprehensive data are available.
Titled “Illicit Financial Flows to and from Developing Countries: 2005-2014,” the report is the first global study at GFI to equally emphasize illicit outflows and inflows. Each is found to have remained persistently high over the period between 2005 and 2014. Combined, these outflows and inflows are estimated to account for between 14.1 and 24.0 percent of developing country trade, on average.
“The order of magnitude of these estimates, much more so than their exactitude, warrants serious attention in both the developing countries and the wealthier world,” said GFI President Raymond Baker, a longtime authority on financial opacity. “Years of experience with businesses and governments in the developing world have taught us that the decision to bring illicit flows into a particular developing country often marks only the first phase of a strategy to subsequently move funds out of the country. Together, illicit inflows and outflows sap the crucial financial resources needed to reach the Sustainable Development Goals.”
To conduct the study, GFI analyzed discrepancies in bilateral trade statistics and balance of payments data, as reported to the International Monetary Fund, in order to detect flows of capital that are illegally earned, transferred, and/or utilized. Since GFI’s last global report, released December 2015, the estimation methodology has been refined. These revisions generate a lower and upper bound for the estimates and account for several country idiosyncrasies.
To schedule an interview with Mr. Baker, Mr. Matthew Salomon, or Mr. Joseph Spanjers, contact Christine Clough at email@example.com / +1 202 293 0740, ext. 231. On-camera spokespersons are available in Washington, DC.
Notes to Editors:
Christine Clough firstname.lastname@example.org +1 202 293 0740 ext.231 (Office)
|Global Financial Integrity (GFI) is a Washington, DC-based research and advisory organization working to curtail illicit financial flows by producing groundbreaking research, promoting pragmatic policy solutions, and advising developing country governments. For additional information, please visit gfintegrity.org.