In his first official act after winning the biggest democratic election in world history, Indian Prime Minister Narendra Modi announced the formation of a Special Investigative Team (SIT) to probe illicit financial flows, or ‘black money’ as they are commonly referred to in India.
Every year, more capital is transferred out of Africa than into the continent. This is despite billions of dollars of foreign aid, natural resource exports, and foreign direct investment.
Yesterday, Global Financial Integrity released the report, Illicit Financial Flows from Developing Countries 2002-2011, which found that developing countries lost $947 billion in illicit financial flows in 2011, and $5.8 trillion over the ten-year study period.
The subject of illicit financial flows is still a new one, and can be confusing. To help answer some common questions about the report, we’ve put together a quick FAQ below:
What Are Illicit Financial Flows? What Does This Report Measure?
Illicit financial flows are cross-border transfers of funds that are illegally earned, transferred, or utilized. These kinds of illegal transactions range from corrupt public officials transferring kickbacks offshore, to tax evasion by commercial entities, to the laundered proceeds of transnational crime.
While at an event sponsored by the Council on Foreign Relations, FTC Manager Porter McConnell asked French Finance Minister Pierre Moscovici if France would support public registries of companies in the European Union. His response: not only does France support them, but they also support several other key pieces of FTC’s agenda. Video here at 41:39:
We’ve just completed our pre-conference seminar here at the 2013 FTC Conference in Dar es Salaam. Fifty reporters, civil society members, and experts from across the world gathered to prepare for the conference. Tomorrow, we’re expecting that number to quadrupedal for the conference’s main event on October 1st and second.
For the first time, we’re scaling up opportunities to participate in the conference. I’ll be live-tweeting the event as our panoply of experts discuss financial transparency and illicit financial flows. On each side of the main stage, we will be displaying all Tweets using the hashtag #FTCDar2013. You can help contribute to the discussion in the room by using the hashtag, or by Tweeting @FinTrCo.
The conference agenda is here. We’ll do our best to post the PowerPoint presentations online, so you can follow along with the play-by-play on Twitter.
Greetings from Dar es Salaam! We’re still half a day away from the beginning the 2013 FTC Conference main program, and we’ve already seen a number of exciting developments. One big development: Semkae Kilonzo, Coordinator for Policy Forum, our partners for the conference in Dar, had a great blog post published at The Guardian this […]
The Financial Accountability and Corporate Transparency (FACT) Coalition is looking to hire a Policy Analyst. FTC, Global Financial Integrity, and Global Witness all work very closely with the FACT Coalition on legislation and policy to fulfill FTC’s five recommendations.
When accused of abusive tax avoidance, the first words out of a mouth of a large-company CEO are usually, “We have a fiduciary responsibility to our shareholders to avoid taxes.” According to a new opinion from Farrer & Co, a major law firm in the UK, that may not be the case.
The opinion, which applies only to the United Kingdom, states, “It is not possible to construe a director’s statutory obligation to promote the success of the company as a positive duty to avoid tax.” FTC Coordinating Committee member Tax Justice Network will be sending a letter to each FTSE-1000 Index CEO containing the document.
Imagine that you are trying to sort out to recover your assets during divorce proceedings, and your significant other forces you to navigate this web of offshore shell companies and trusts, often with intermediaries listed as the beneficial owner. Read more at FT Alphaville.
The G20 Finance Ministers and Central Bank Governors met in Moscow this weekend, following the release of the OECD’s report on Base Erosion and Profit Shifting (BEPS). That report, along with pieces of FTC’s agenda money laundering, automatic information exchange and beneficial ownership made it into the communiqué released by the G20 representatives following their summit.
When the son of the president of a desperately poor country starts buying mansions and sportscars on an official monthly salary of $7,000, Charmian Gooch suggests, corruption is probably somewhere in the picture. In a blistering, eye-opening talk (and through several specific examples), she details how global corruption trackers follow the money — to some surprisingly familiar faces.
Canadians have about twice as much money squirreled away in tax havens as they did a decade ago, writes Tom Cardamone in the Canadian edition of The Huffington Post. With the G8 summit looming, will Canada’s government support David Cameron’s transparency reforms, including public registries of the true owners of companies?