Hiding in Plain Sight - Illicit Financial Flows and their Impact on Five African Countries

Monday, 12 May 2014, 15.00-16.30

 

DIIS, Danish Institute for International Studies

Main auditorium

Gl. Kalkbrænderi Vej 51A

2100 Copenhagen

 

 

Background

 

Illicit flows of capital due to trade misinvoicing through developing countries is one of the most pressing challenges facing local  policymakers. The global figure for illicit financial outflows from developing countries is approximately USD 542 billion per year on average, and trade mis-invoicing makes up close to 80 per cent of this or USD 424 billion. Capital flight, facilitated by a global network of secrecy jurisdictions and complex, opaque corporate and account structures, robs governments and societies of needed  revenue for domestic investment in the private sector, infrastructure development, and the provision of vital social services. This translates into lost opportunities, lost jobs, and lost potential.

 

In the new Danida funded study “Hiding in Plain Sight, Trade Misinvoicing and the Impact of Revenue Loss in Ghana, Kenya,  Mozambique, Tanzania and Uganda: 2002-2011”, researchers from Global Financial Integrity explore the economic and the policy side of the issue of trade misinvoicing using case studies of Ghana, Kenya, Mozambique, Tanzania, and Uganda – all Danish priority countries and long-standing partners in development cooperation. Data on illicit flows for these five countries demonstrate the varying magnitudes, sources, and consequences of trade misinvoicing at the country level and provide hope and warning to other developing countries. Trade misinvoicing is a significant source of illicit outflows and inflows of capital in each country, resulting in billions of dollars of lost investment and hundreds of millions of dollars in unrealized domestic resource mobilization.

 

This seminar will provide an opportunity to discuss the severe impact of illicit financial flows connected with trade misinvoicing  in Africa and measures to curb them. What can the countries do themselves and how can the international community support their efforts?

 

 

Speakers

 

Raymond Baker, President, Global Financial Integrity

Martin Bille Hermann, State Secretary for Development Policy, Ministry of Foreign Affairs

Lars Koch, Director of Policy & Campaigns, Ibis

 

Programme

 

15.00-15.05

Welcome

 

Nanna Hvidt, Director, Danish Institute for International Studies

 

 

15.05-15.30

Hiding in Plain Sight, presentation of the new study

 

Raymond Baker, President, Global Financial Integrity

 

 

15.30-15.40

Fighting Illicit Financial Flows in Danish Development Cooperation

 

Martin Bille Hermann, State Secretary for Development Policy, Ministry of Foreign Affairs

 

 

15.40-15.50

Discussant

 

Lars Koch, Director of Policy & Campaigns, Ibis

 

 

15.50-16.20

Q&A and open discussion

 

 

16.20-16.30

Conclusions

 

Jakob Vestergaard, Senior Researcher, DIIS

 

 

Practical information

 

The seminar will be held in English. The study will be made public at www.um.dk prior to the seminar and copies made available at the seminar.

Participation is free of charge, but registration is required. Please use our online registration form no later than Friday 9 May 2014 at noon.

 

Sign up

 

Danish Institute for International Studies

Gammel Kalkbrænderi Vej 51A, 2100 Copenhagen - Ph.: +45 3269 8660 - event@diis.dk - www.diis.dk

 

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