Globally the business of transnational crime is valued at an average of $1.6 trillion to $2.2 trillion annually, according to a new report released by Global Financial Integrity (GFI), a Washington DC-based research and advisory organization. Titled “Transnational Crime and the Developing World,” the study highlights that the combination of high profits and low risks for perpetrators of transnational crime and the support of a global shadow financial system perpetuate and drive these abuses.
As national leaders meet at the African Union Summit in Addis Ababa this week, a group of civil society experts has issued a set of recommendations to address illicit financial flows (IFFs), an issue of critical importance to regional development. Titled Accelerating the IFF Agenda for African Countries (the Accelerated IFF Agenda), the purpose of the document is to highlight for African leaders fourteen steps that can be taken to jumpstart efforts to address IFFs. Among the recommendations are suggestions to establish a multi-agency approach to fight IFFs, to collect information to identify corporate ownership, and certain tax-related measures.
Global Financial Integrity (GFI), the Centre for Applied Research at the Norwegian School of Economics and a team of global experts have released a study showing that since 1980 developing countries lost US$16.3 trillion dollars through broad leakages in the balance of payments, trade misinvoicing, and recorded financial transfers. These resources represent immense social costs that have been borne by the citizens of developing countries around the globe. Funding for the report was provided by the Research Council of Norway, and research assistance was provided by economists in Brazil, India, and Nigeria.
Today Global Financial Integrity (GFI) launches its new database tool—GFTrade—with real-time price analyses to measure trade misinvoicing risks for 80,000 goods categories. Trade misinvoicing accounts for hundreds of billions in illicit financial flows from developing countries, and in curtailing these outflows, GFTrade would generate millions of dollars in additional domestic revenue.
Channing Mavrellis, CAMS
As the Convention on International Trade in Endangered Species of Wild Fauna and Flore (CITES) gathers in Johannesburg for its 17th Conference of the Parties, Global Financial Integrity (GFI) releases new estimates on the link between wildlife trafficking and the global shadow financial system. From a forthcoming report, to be published in November 2016, GFI finds that wildlife trafficking generates an estimated US$5 to $23 billion in revenues each year.
Heather Lowe, +1 202 293 0740 ext. 228
“Today, neither legislators nor investors have any reliable information about multinationals’ profit shifting practices apart from the result of them—less revenue in the U.S. treasury and greater risk of enforcement actions worth billions of dollars,” commented Heather Lowe, Legal Counsel and Director of Government Affairs at Global Financial Integrity.
Call follows alarm over range of threats to investments from anonymous company owners ** Read the full letter to the Senate HERE and House HERE ** Washington, DC — Today global investors managing over $740 billion in assets are calling for the...
Heather Lowe, +1 202 293 0740 ext. 228
Today the U.S. Treasury and the Internal Revenue Service (IRS) published a rule, which will become final tomorrow, requiring the U.S. parent company of large, public and privately held multinational companies to provide certain financial data to the IRS on a country-by-country basis. The information is meant to provide tax authorities with better tools to identify where a company might be artificially shifting profits into tax havens—a red flag for tax evasion and tax avoidance that may warrant further investigation.