EXCLUSIVE COMMENT A recent study, 'Illicit Financial Flows from Developing Countries: 2000-2009', noted that the term “illicit financial flows” rather than “illegal capital flight” has been used by governments and international organisations around the world to draw attention to how such flows worsen poverty and inequity and thwart economic development. Such flows arise due to the cross-border transfer of money earned through corruption, criminal activities, trade mispricing, and transactions involving contraband goods as also tax evasion on legitimate income or profits...
Limitations of economic models in capturing outflows of illicit funds which were generated in unrecorded cash transactions such as in drug and human trafficking, sex trade, trade mispricing carried out on the same invoice through collusion among traders and a number of other illegal activities significantly understate estimates of illicit financial flows.
Ahh...so that means the 'bizarre' figure of RM208 billion ($68.2 billion) reported by GFI could be higher!
Limitations of economic models in capturing outflows of illicit funds which were generated in unrecorded cash transactions such as in drug and human trafficking, sex trade, trade mispricing carried out on the same invoice through collusion among traders and a number of other illegal activities significantly understate estimates of illicit financial flows.
Ahh...so that means the 'bizarre' figure of RM208 billion ($68.2 billion) reported by GFI could be higher!
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