E.J. Fagan, +1 202 293 0740 ext. 227
Illicit Financial Outflows Average Over 5% of GDP, Driven by Underground Economy, Spiked in Wake of NAFTA
Study Recommends Policies Be Implemented to Address Trade Mispricing, Money Laundering, Tax Evasion
MEXICO CITY / WASHINGTON, DC – Crime, corruption and tax evasion cost the Mexican economy US$872 billion between 1970 and 2010 according to a new report from Global Financial Integrity (GFI), a Washington, DC-based research and advocacy organization. The illicit financial outflows, which averaged a massive 5.2% of GDP, grew significantly over the 41-year period studied from just US$1 billion in 1970 to US$68.5 billion in 2010.
MEXICO CITY – Representatives from Global Financial Integrity will be holding a briefing on the report for journalists in the Doña Sol Room at the Hilton Mexico City Reforma Hotel in Mexico City on Monday, January 30, 2012 at 11am CST.
Proposals to Amend Foreign Bribery Law Could Significantly Undermine Human Rights, Commerce, U.S. Standing in the World
WASHINGTON, DC – Earlier today more than 30 civil society and business groups, including human rights and anticorruption organizations, sent a letter to every member of the U.S. House of Representatives and U.S. Senate expressing their opposition to any efforts to amend the world’s flagship anticorruption legislation, the U.S. Foreign Corrupt Practices Act (FCPA).
We learned some devastating news last month. A new study from Global Financial Integrity revealed that despite the onset of the global financial crisis in late 2008, the developing world still suffered nearly $1 trillion in illicit financial outflows in 2009, a number that is almost 10 times larger than the official development assistance they receive each year from Western economies like the United States, United Kingdom and Norway.
These outflows — the proceeds of crime, corruption and tax evasion — bleed developing economies of much-needed tax revenue, exacerbate income inequality, and fuel the underground economy. They undermine the rule of law, entrench corruption, and shrink developing nation economies at a time when they can least-afford it.
It is encouraging to see the zealous enthusiasm that has surfaced in India over the past few years on eliminating black money or illicit financial flows. While many other countries are taking modest steps to curtail illicit flows, India has gone ahead to make the issue one of pressing national importance. Applause is due to the nation, while more work remains tobe done.
India has acted strongly to pressurise foreign banks into accounting for and in the future returning illicitly-acquired assets to the country. This is a worthwhile goal. But any asset recovery will be a long-drawn process and is likely to result only in a fraction of illicit dollars being returned. A more productive outcome can be to focus on stemming future illicit financial flows, both domestically through mechanisms such as anti- corruption legislation and by applying pressure on the international community.
Over US$900 Billion Illicitly Drained from Developing Countries in 2009, Says Annual GFI Study
Report Finds Developing World Lost US$8.44 Trillion over the Decade 2000-2009
WASHINGTON, DC – Developing countries lost US$903 billion in illicit financial outflows in 2009 despite the massive slowdown in economic activity which rocked world markets in late 2008, finds a new study by Global Financial Integrity (GFI), a Washington-based research and advocacy organization.
Senator to Accept Award Tonight at Gala Dinner in Washington, DC
WASHINGTON, DC – Global Financial Integrity (GFI) will tonight present Senator Carl Levin (D-MI) with the organization’s 2011 annual Award for Exemplary Leadership in acknowledgement of his untiring efforts on behalf of financial integrity in the U.S. and abroad. Sen. Levin will accept the award this evening at a gala dinner hosted by GFI in his honor at The Army and Navy Club in Washington, DC.
Trade Mispricing Fuels Massive Outflows from Southeast Asian Nation, Finds Annual GFI Study to Be Released Thursday
WASHINGTON, DC – The illicit mispricing of trade cost the Philippines US$114 billion from 2000-2009 with total illicit outflows over the decade due to crime, corruption and tax evasion amounting to US$142 billion, finds a forthcoming report from Global Financial Integrity (GFI)—a Washington-based research and advocacy organization. The study,Illicit Financial Flows from Developing Countries over the Decade Ending 2009, which is embargoed for publication until Thursday, places the Southeast Asian nation in the top fifteen victims of illegal capital flight world-wide.
