• Factsheet
  • 10 October 2018

Understanding illicit financing flows in a development financing context

This factsheet was authored by Maya Forstater, a visiting fellow at the Center for Global Development and a researcher and advisor on business and sustainable development. Her work focuses on the intersection of public policy, business strategy and sustainability including questions around tax and development, financing for low carbon investment and multi-sector partnerships and standard setting.

From 2014–2016 she was Senior Researcher for the UNEP Inquiry into the Design of a Sustainable Financial System. She has also worked with the Transparency and Accountability Initiative (for the Open Government Partnership), the South African Renewables Initiative, the Global Green Growth Initiative, AccountAbility and the World Business Council for Sustainable Development.

Notes

[1] Financial Action Task Force, 2011. Laundering the proceeds of corruption: Typologies report. Available at: www.fatf-gafi.org/documents/documents/launderingtheproceedsofcorruption.html

[2] Inter-agency Task Force (Chowla, P. and Falcao, T.), 2016. Illicit financial flows: concepts and scope.

[3] Inter-agency Task Force (Chowla, P. and Falcao, T.), 2016. Illicit financial flows: concepts and scope; Picciotto, S. 2018. Illicit financial flows and the tax haven and offshore secrecy system. Tax Justice Network. Available at: www.taxjustice.net/2018/02/08/illicit-financial-flows-tax-haven-offshore-secrecy-system; Forstater, M, 2018. Illicit financial flows, trade misinvoicing, and multinational tax avoidance: The same or different? Center for Global Development (CGD); and Cobham, A., 2018. Target 2030: illicit financial flows. Real Institito Elcano.

[4] Johannesen, N. and Pirttilä, J., 2016. Capital flight and development: An overview of concepts, methods, and data sources. 2016/95. Helsinki: UNU-WIDER. Available at: www.wider.unu.edu/publication/capital-flight-and-development; Nitsch, V., 2016. Trillion dollar estimate: Illicit financial flows from developing countries. Darmstadt University of Technology; and Forstater, M., 2016. Illicit flows and trade misinvoicing: Are we looking under the wrong lamppost? CMI Insight no. 5.

[5] Hunter, M., 2018. Measures that miss the mark. Capturing the proceeds of crime in illicit financial flow models. Global Initiative Against Transnational Organized Crime. Available at: www.globalinitiative.net/capturing-proceeds-of-crime-in-illicit-financial-flows-models/

[6] Global Financial Integrity, 2017. Illicit financial flows to and from developing countries: 2005–2014.

[7] CGD, 2015. Unintended consequences of anti-money laundering policies for poor countries. Available at: www.cgdev.org/publication/unintended-consequences-anti-money-laundering-policies-poor-countries

[8] Fontana, A., 2011. Making development assistance work at home: DFID’s approach to clamping down on international bribery and money laundering in the UK. Bergen: CMI.

[9] Yikona, S., Slot, B., Geller, M., Hansen, B., Kadiri, F., 2011. Ill-gotten money and the economy: experiences from Malawi and Namibia. World Bank.

[10] OECD, 2018. The economy of illicit trade in West Africa.

[11] Lain, S., Campbell, H., Moiseienko, A., Nouwens, V., and de Oliveira, I.S., 2017. Illicit financial flows and corruption in Asia. RUSI.

[12] Transparency International, 2018. G20 Leaders or Laggards? Reviewing G20 Promises on Ending Anonymous Companies. Available at: https://www.transparency.org/whatwedo/publication/g20_leaders_or_laggards

[13] OECD, 2014. Illicit financial flows from developing countries: Measuring OECD responses.