Illicit Financial Flows to and from the Philippines: A Study in Dynamic Simulation, 1960-2011
A new report by Global Financial Integrity finds that US$410.5 billion in illicit financial flows moved into or out of the Philippines between 1960 and 2011.
Illicit financial flows, which are cross-border transfers of funds that are illicitly earned, transferred or utilized, represent a broad and accelerating problem for the Philippines. The report finds that trade misinvoicing cost the Philippine taxpayer US$23 billion in customs revenue since 1990, as 25% of the value of all goods imported into the Philippine went unreported to customs officials.
Developing Countries Are Being Undermined by Rich Nations' Greed
Australia's Complicity in Money Laundering Hurts the World's Poor
By Tom Cardamone and Clark Gascoigne
The Sydney Morning Herald
December 30, 2013
When you hear the words ''global development'' what comes to mind? Foreign aid? Malaria prevention? Humanitarian assistance?
These are all worthy causes, but the most damaging economic problem facing the world's poor today is the flow of illicit money leaving developing economies as a result of crime, corruption, and tax evasion. Two recent studies drive this point home.
Why Bitcoin (and Other Cryptocurrencies) Will Inevitably Become Tools of the Rich, Powerful, and Criminal
By E.J. Fagan
December 3, 2013
Last week, an op-ed that I wrote for The Baltimore Sun prompted a lot of very strong reactions, both positive and negative. I argued that efforts to make Bitcoins functionally anonymous are very dangerous, because money laundering is inherently very dangerous.
To summarize my argument: transnational crime is a global business valued in the hundreds of billions of dollars, and criminals need a way to easily launder, move, and invest that money to make it worth the risk. I brought up two examples—rhino poaching and human trafficking—in the op-ed, but there are dozens more crimes (including drug trafficking and weapons smuggling) to which you can refer.
GFI in the News
Following the Money: Tracking Illicit Cash Flows from Developing Countries
The Guardian, October 18, 2013
Top Kenyan Official Proposes Uniform Mining Regulation For Africa
Ventures Africa, October 18, 2013
Of tax havens and development: How to put an end to illicit financial flows
Devex, October 16, 2013
Tanzania committee says billions lost to corporate tax evasion
Trust Law, October 14, 2013
The Dirty Truth About Russia's 'Dirty' Money
The Moscow Times, October 9, 2013
Who will preside as Supreme Court chief over Delaware's gold mine?
The News Journal, October 11, 2013
In Algeria, Illegal Money-Changers Thrive
Businessweek, October 10, 2013
Electronic clearance to stem Kenya’s $250 million a year customs graft - report
Trust Law, October 9, 2013
Nigeria: For reformers, economics is politics - Ngozi Okonjo-Iweala
The Africa Report, October 4, 2013
Millions stashed offshore, as Serbian firms lurched toward ruin
EU Observer, October 3, 2013
February 24, 2014
Clark Gascoigne, +1 202 293 0740 x222
WASHINGTON, DC – Global Financial Integrity announced today that Arvinn Eikeland Gadgil has joined its Advisory Council. GFI, a research and advocacy organization based in Washington DC, will benefit from Mr. Gadgil’s experience working to promote economic development and curtail illicit financial flows at the highest level.
Mr. Gadgil is Director of Partnerships and Policy at the Norwegian Refugee Council in Oslo. Prior to his appointment in January 2014 he was Norway"s Deputy Minister for International Development from April 2012 to December 2013. Previously, he was Political Advisor to the Minister of Development. From 2006–2007 he worked in the South Asia and Afghanistan section in the Ministry for Foreign Affairs. Mr. Gadgil has also been posted to Afghanistan and worked for Development Fund Norway.
Raymond Baker, President of Global Financial Integrity, said, “We could not be more pleased to welcome Arvinn Eikeland Gadgil to our advisory council. He has worked tirelessly to help developing countries build more robust, transparent economies. We look forward to receiving his guidance on how we can better craft and pursue our global agenda on curtailing illicit financial flows.”
The other members of GFI’s Advisory Council are Kenneth M. Jensen, Eva Joly, Robert M. Morgenthau, Moisés Naím, Ngozi Okonjo-Iweala and John C. Whitehead.
European Vote Raises Pressure on White House & Congress to Follow Suit
EU Parliament Endorses Creation of Public Registries of Beneficial Ownership Information
February 20, 2014
Clark Gascoigne, +1 202 293 0740 x222
WASHINGTON, DC – Global Financial Integrity (GFI) praised the European Parliament for voting today to crack down on anonymous shell companies, a major conduit for laundering the proceeds of crime, corruption, and tax evasion.
The European Parliament’s Economic and Monetary Affairs (ECON) Committee as well as the Civil Liberties, Justice, and Home Affairs (LIBE) Committee voted in favor of requiring public registries of beneficial ownership information for companies incorporated in the EU, as part of its revisions to the EU’s Anti-Money Laundering Directive (AMLD).
“We strongly praise the vote by the European Parliament to crack down on anonymous shell companies,” said GFI President Raymond Baker, a longtime authority on financial crime. “As our research notes, nearly $70 billion flowed illegally into or out of emerging EU economies in 2011. Anonymous shell companies are the number one tool for laundering the proceeds of crime, corruption, and tax evasion. Creating public registries of the true, human, ‘beneficial’ owner of each company—as the Parliament endorsed today—is a common sense approach to curbing financial crime and the tremendous flow of illegal money.”
New Standard Ensures All Nations Can Potentially Benefit from Robust, Automatic Exchange of Financial Information
G20 Finance Ministers to Review Document for Approval Next Week Ahead of Australian G20 Summit in the Fall
Research and Advocacy Organization Expects New Transparency Regime to Be ‘Game-Changing’ Deterrent to Cross-Border Tax Evasion, Money Laundering
WASHINGTON, DC – Global Financial Integrity (GFI) applauded the Organization for Economic Cooperation and Development (OECD) today following its historic release of a new model multilateral agreement that countries will use to tackle tax evasion, money laundering, and other financial crime. GFI, a research and advocacy organization based in Washington, DC, touted this as a major victory and welcome culmination of one front in the long battle for cross-border financial transparency.
Heather Lowe, Legal Counsel and Director of Government Affairs at GFI, said of the new model agreement, “Automatic exchange of tax and financial information is essential to combating global tax evasion and money laundering. For years, the OECD recommended member-countries exchange information only upon request, a process that has proved inadequate to detect and deter cross-border financial crime. This is truly a game-changing policy shift at the highest level.”
Money Laundering, Explained
Illicit Financial Flows and the Problem of Net Resource Transfers from Africa: 1980-2009
A new report jointly produced by Global Financial Integrity and the African Development Bank finds that developing countries lost $1.4 trillion in net resource transfers, which are comprised of both licit and illicit flows, including investment, remittances, debt relief, and illicit financial flows, from 1980-2009.
The implications of this report are broad. Despite foreign aid, natural resource exports, and other transfers, developed countries still take away more resources than they give to Africa.
Recent Reports from GFI
Russia: Illicit Financial Flows and the Role of the Underground Economy
February 2013 | Read more...
Transnational Crime In The Developing World
February 2011 | Read more...
Mexico: Illicit Financial Flows, Macroeconomic Imbalances, and the Underground Economy
January 2012 | Read more...
The Drivers & Dynamics of Illicit Financial Flows from India: 1948-2008
November 2010 | Read more...