Illicit financial flows have made Africa a net creditor to the world'
- Hayward Heath RH16 3DH: Mail and Guardian, 2013.
The article is based on the findings of the UN Report on IFFs in Africa. Africa lost up to $1.4tn in illicit financial flows in 1980-2009, far exceeding money coming in over the same period and seriously undermining the continent`s development. Illicit financial flows involve the transfer of money earned through corruption, bribes, tax evasion, criminal activities and transactions involving contraband goods.The estimates of illicit financial flows – large as they are – are likely to understate the problem as they do not capture money lost through drug trafficking and smuggling. But the huge financial transfers out of Africa – dwarfing money coming into the continent – deprive Africa of resources for development.Most African countries, with weak tax regimes, are by far the biggest losers. Three African regions – west and central Africa ($494bn), north Africa ($415bn) and southern Africa ($370bn) – accounted for 95% of total cumulative outflows over the 30-year period. The report urges countries to require banks and tax havens to regularly report deposit data by sector, maturity and country of residence of deposit holders to the Bank for International Settlements, the bank for central banks.
ADVANCE FREE-FRAUD, BALANCE OF PAYMENTS, CAPITAL FLIGHT
