Financial market integrity matters for development. Countries’ financial systems must be transparent, inclusive, and function with integrity to ensure economic development and promote good governance.
Transnational organized criminal activity, corruption, the illegal trade in natural resources and the laundering of the proceeds of crime generate illicit flows that undermine good governance, financial sector stability, and economic development.
Addressing illicit and illegal money flows is a key priority of the World Bank Group.
The cross-border flow of the global proceeds from criminal activities, corruption, and tax evasion are estimated at between $1 trillion and $1.6 trillion per year, with roughly half of that sum coming from developing economies. Those assets – if recovered - would make a huge difference for developing countries.
More than 150 countries have committed to fighting the proceeds of crime and adhere to the Financial Action Task Force on Money Laundering (FATF) Recommendations. These countries submitted themselves to review by other countries on the quality of their regimes and to show a commitment to improving transparency and fighting corruption. Countries have also committed themselves to fighting the proceeds of crime through the United Nations Convention against Corruption; the United Nations Convention against Transnational Organized Crime; and the United Nations Convention against Illicit Drugs Trafficking.
Why focus on money flows
- So that criminals don't benefit from their crimes, whether corruption, environmental crime, human trafficking, and other crimes that impede development.
- To protect the financial sector from abuse and reputational risks that undermine its core functions
- So that "dirty money" is not recycled into the legitimate economy leading to a criminalized economy
- It's an innovative approach for addressing development issues of governance, financial inclusion, stolen asset recovery, and illicit financial flows.
Last Updated: Jun 18, 2015