Illicit Financial Flows: Net Resource Transfers from Africa

Between 1980 and 2009, the economies of Africa lost between US$597 billion and US$1.4 trillion in net resource transfers away from the continent.

Illicit Financial Flows and the Problem of Net Resource Transfers from Africa: 1980-2009

Illicit Financial Flows and the Problem of Net Resource Transfers from Africa: 1980-2009

Joint Report from Global Financial Integrity and the African Development Bank. May 2013

Primary Findings


Between 1980 and 2009, the economies of Africa lost between US$597 billion and US$1.4 trillion in net resource transfers away from the continent.

These transfers include both licit flows, such as investment, foreign aid, debt relief, and remittances moving into and out of the country, and illicit flows, such as the proceeds of crime, corruption, and tax evasion moving out of the continent.

Implications


The resource drain on Africa over the past thirty years is almost equivalent to Africa’s current GDP. This represents a major drag on African development, and dwarfs much of the effort that donor countries undertake to boost the continent’s struggling economies.

Distribution


Which countries lost the most net resources?

PDF Download Country Distribution Graph (175 KB)

Policy Recommendations


The report recommends several policies, including:

  • Require banks and tax havens to regularly report to the Bank of the International Settlements (BIS) detailed deposits by sector, maturity, and country of residence of deposit holders.
  • Address the problem of shell companies by requiring that all corporations, foundations, and trusts confirm beneficial ownership information in all banking and securities accounts.
  • Address capacity issues and corruption domestically within African tax authorities.
  • Persue automatic cross-border exchange of tax information on personal and business accounts, ideally on a multilateral basis.

Data


Download all tables, charts, and data from the report (.ZIP)


PDF Download Full Report [High-Res] (5.9 MB)

PDF Download Full Report [Low-Res] (4.2 MB)

PDF Download Executive Summary (65 KB)

PDF Download Foreword (226 KB)

 

Website: http://africanetresources.gfintegrity.org/


 

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