Efforts to tackle Africa illicit flows will fall short

Subject

Illicit flows from sub-Saharan Africa.

Significance

Illicit financial flows (IFFs) from sub-Saharan Africa (SSA) are estimated to be worth up to 50 billion annually, according to a recent UN report. The transfer of illicit flows through international financial systems has created opportunities for governments in European destination countries to recover plundered funds and prosecute those involved. These efforts set new legal precedents, but the rulings will be difficult to implement where governments are worried about the effect on investor sentiment.

Impacts

• New and important African trading partners, from China to Dubai, will create new networks of illicit financial flows.
• Questions of financial transparency will arise, though irrespective of where the 'destination' negotiating partner is from.
• China's extra-territorial anti-bribery legislation shows efforts to comply with 'responsible' business, but so far lacks implementation.