Tom Cardamone
Australia’s Complicity in Money Laundering Hurts the World’s Poor
When you hear the words ”global development” what comes to mind? Foreign aid? Malaria prevention? Humanitarian assistance?
These are all worthy causes, but the most damaging economic problem facing the world’s poor today is the flow of illicit money leaving developing economies as a result of crime, corruption, and tax evasion. Two recent studies drive this point home.
OECD Member Countries Not Compliant with International Standards for Fighting Money Laundering, Tax Evasion, and Corruption
Report from Intergovernmental Body Published 1 Week after GFI Study Found Developing World Lost Nearly $1 Trillion in Illicit Outflows in 2011
WASHINGTON, DC – A landmark report published today by the Paris-based Organization for Economic Co-operation and Development (OECD) takes its members—some of the richest countries in the world—to task for failing to implement policies to curtail illicit financial flows in the developing world. The OECD study—which was quietly posted on the multilateral institution’s website this morning—comes just one week after Global Financial Integrity (GFI) released its annual update on illicit financial outflows from the developing world, finding that the world’s poorest countries lost nearly US$946.7 billion in illegal capital flight in 2011, a 13.7 percent rise from the year before.
E.J. Fagan, +1 202 293 0740 ext. 227
Illicit Financial Outflows from Developing World Up 13.7% from 2010
Nearly $6 Trillion Stolen from Developing Countries in Decade between 2002 and 2011
China, Russia, Mexico, Malaysia, India—in Declining Order—are Biggest Exporters of Illicit Capital over Decade; Sub-Saharan Africa Suffers Biggest Illicit Outflows as Percent of GDP
Study Is First GFI Analysis to Incorporate Re-Exporting Data from Hong Kong and First GFI Report to Utilize Disaggregated Trade Data in Methodology
WASHINGTON, DC – Crime, corruption, and tax evasion drained US$946.7 billion from the developing world in 2011, up more than 13.7 percent from 2010—when illicit financial outflows totaled US$832.4 billion. The findings—which peg cumulative illicit financial outflows from developing countries at US$5.9 trillion between 2002 and 2011—are part of a new study published today by Global Financial Integrity (GFI), a Washington, DC-based research and advocacy organization.
Monday was International Anti-Corruption Day, an occasion for those who work to fight bribery, money laundering, and illicit capital flight to reflect on the past year and set goals for the next. We have many reasons to celebrate 2013, but also plenty of work still to do in 2014. At Global Financial Integrity, our research shows that nearly $1 trillion leaves developing countries each year (many times the amount such countries receive in official development assistance) through illicit financial outflows, a devastating loss of capital facilitated by a shadow financial system more than happy to accommodate corrupt assets. Gains in tax information exchange and other areas this year will surely help curtail some of this moving forward, but there are many more policy changes needed before this economic scourge can be effectively addressed.
E.J. Fagan, +1 202 293 0740 ext. 227
WASHINGTON, DC – As the world commemorates International Anti-Corruption Day on Monday, December 9, 2013, Global Financial Integrity (GFI)—a Washington-based, non-profit research and advocacy organization—reviewed many of the most notable achievements, developments, and shortcomings in fighting corruption and illicit financial flows for 2013.
“2013 has proven to be a landmark year in terms of policy advancements to curtail corruption and illicit financial flows,” said GFI President Raymond Baker, a longtime authority on financial crime. “Years of hard work by policymakers, researchers, and advocates culminated in real, on-the-ground policy achievements that will directly impact the amount of money leaving developing countries. We saw a few setbacks, but overall the year was very encouraging.”
Amanda Fortier
Ibrahima Aidara
Global Financial Integrity
Recent Study Shows Integrity Institutions Lack Effectiveness in Controlling Looting of Wealth
DAKAR, Senegal – Economies in Africa have lost between $597 billion and $1.4 trillion in net resource transfers in the past three decades, despite the growth in integrity institutions on the continent, according to a recent study conducted by Global Financial Integrity (GFI). Illicit financial flows are the topic of a two-day forum organized by the Open Society Initiative for West Africa (OSIWA) and TrustAfrica on December 9th and 10th, at Terrou Bi Hotel in Dakar, Senegal.
The Right Leader for South Africa—and the World—at the Right Time
WASHINGTON DC – Global Financial Integrity today mourned the passing of civil rights leader and former South African President Nelson Mandela, who died yesterday at his home in South Africa at the age of 95. Global Financial Integrity expressed sympathy for the people of South Africa for losing an iconic leader.
After nearly three decades of imprisonment, Mandela was freed in 1990. He publicly responded with a message of reconciliation, rather than vengeance, and helped unite South Africa after the end of apartheid. Later, Mandela was elected as the first black President of South Africa, and pursued an agenda of social welfare and inclusion.
Last week, an op-ed that I wrote for The Baltimore Sun prompted a lot of very strong reactions, both positive and negative. I argued that efforts to make Bitcoins functionally anonymous are very dangerous, because money laundering is inherently very dangerous.
To summarize my argument: transnational crime is a global business valued in the hundreds of billions of dollars, and criminals need a way to easily launder, move, and invest that money to make it worth the risk. I brought up two examples—rhino poaching and human trafficking—in the op-ed, but there are dozens more crimes (including drug trafficking and weapons smuggling) to which you can refer.
