‘Record’ Illicit Money Lost by Developing Countries Triples in a Decade
- Washington Global Issues 2014
- 4p.
The paper looks at the alarming rate in which IFFs are increasing in developing countries. In sub-Saharan Africa, home to some of the world`s poorest communities, these rates are growing at more than 13 percent per year. Such figures eclipse both foreign assistance and foreign investment – indeed, the 2012 figure was more than 11 times the total development assistance offered on a global basis. Developing countries are losing money through illicit channels at twice the rate at which their economies are growing, according to new estimates released. Findings from Global Financial Integrity (GFI), re-confirm previous estimates that developing countries are losing almost a trillion dollars a year through tax evasion, corruption and other financial crimes. In less than a decade, then, these illicit outflows more than tripled in size, totalling at least 6.6 billion dollars. There are also significant differentials between regions, both is size and the rate at which they`re increasing. Lucrative misinvoicing is touched in detail as broad recognition of the monumental impact that illicit financial flows have on poor countries` ability to fund their own development.
AID MISINVOICING BANKING SECRECY CAPITAL FLIGHT CAPITAL OUTFLOW COUNTERFEITNG DEBT FAKING TRANSACTIONS ILLICIT WEALTH GOOD GOVERNANCE MONEY LAUNDERING SMUGGLING TAX EVASION TAX HAVENS TAXES
