Learn About Illicit Financial Flows
Key Terms

Raymond Baker: Illicit Financial Flows: The Scourge of the Developing World

January 8, 2013

By EJ Fagan

EJ Fagan was New Media Coordinator for the FTC from 2011-2013. He is now Deputy Communications Director for Global Financial Integrity. You can follow him on Twitter @ejfagan.

flickr / airpantherSometimes, it is easy to lose sight of the big picture when talking about illicit financial flows. We either spend time talking and reading about big numbers–the total amount of money flowing out of countries–or individual events, like the horrible things facilitated by HSBC. Today, Task Force and Global Financial Integrity Director Raymond Baker took a step back and discussed the big-picture implications of illicit financial flows, and what they do to a society, in the Huffington Post.

He writes,

For most of my professional life, I owned and operated a number of businesses in Nigeria. My partners and I would find a failing company, buy it out, and rebuild it as an efficient, well-run enterprise that turned a profit. We paid our taxes, refused to participate in bribery or corruption, and created jobs.

I am sad to say that when Nigerians look into the future, they do not see the optimism that I experienced back in the 1960s and ’70s. Their country has been torn apart not just by civil war, but also by the terrible forces of crime, corruption, and tax evasion. After years of seeing the quality of life for so many people in Nigeria decrease, I decided that I was obligated to do something about it. I founded Global Financial integrity, an organization dedicated to curtailing illicit money leaving countries like Nigeria around the world.

Late last month, we released a new report showing that $5.86 trillion left the developing world due to crime, corruption, and tax evasion from 2001-2010, including $859 billion in 2010 alone. These illicit transfers of money away from developing countries are known as illicit financial flows, and they are one of the least talked about challenges that the world needs to overcome in order to fight global poverty.

You can read the rest of the article here.

Attribution Some rights reserved by airpanther

Share

Disclaimer: Unless specifically stated to be the views of the Financial Transparency Coalition, the opinions expressed on this blog are solely the opinions of the individual blogger and are not necessarily those of the Financial Transparency Coalition.

Latest Press Releases

$2 lost for every $1 gained: New report shows global financial system fails developing countries

Eurodad · December 18, 2014

Developing countries are losing twice as much money as they earn because of issues like tax evasion, profits taken out by foreign ...

Eurodad and Tax Justice Network Named to List of “Global Tax 50”

Financial Transparency Coalition · December 17, 2014

WASHINGTON D.C.—The Financial Transparency Coalition congratulates two members of its Coordinating Committee who were named to the International Tax Review’s “Global ...

EU compromise tightens regulation on shell companies, but without public access, many still in the dark

Financial Transparency Coalition · December 17, 2014

BRUSSELS — In a deal reached last night, parliamentarians and campaigners have succeeded in making company ownership a fundamental topic. While EU ...