The third Financing for Development Conference (FfD) will take place in Addis Ababa, Ethiopia, July 13-16, and Global Financial Integrity will be on the ground advocating for specific, measurable and achievable targets to significantly reduce illicit financial flows.
This process marks a momentous opportunity to create a sustained path for helping developing countries address the nearly US$1 trillion that flows out of their economies illicitly each year. Of that amount approximately $730 billion is moved offshore through trade misinvoicing (i.e. trade fraud). The related tax loss, coupled with the potential investment resources that are lost, represent significant costs to governance and development efforts in poor countries.
In the months leading up to the FfD conference, GFI has been urging governments to set a target for addressing trade misinvoicing as a concrete, practical, and lucrative approach to reducing illicit money leaving developing economies. Specifically, GFI is calling for “halving trade misinvoicing at the country level by 2030” as a recipe for sustainable development.
Source: Global Financial Integrity