Browsing: illicit financial flows africa

• Illicit financial flows causing major losses to Tanzania’s mining industry.
• Experts cite tax avoidance as the leading motive behind Illicit financial flows.
• Tanzania moves to enforce strict laws to curb Illicit financial flows.

Illicit Financial Flows (IFFs) in Tanzania’s mining sector has become rampant despite government efforts to control the sector. Last month, almost 16 kilogrammes of smuggled gold were seized at the Dar es Salaam Port, a pointer to rising crime amid efforts by the East African country to power growth through increased investment in the mining industry.

Illicit financial flows refers to “the cross-border movements of illegally earned, transferred, or utilized financial capital that deprive countries of essential resources, undermining development and the well-being of citizens.”

IFFs are basically the result of investors seeking to earn profits above a given sector’s average. To do this, the unscrupulous businesses avoid taxes and generally view corporate tax and even corporate …

The African Union (AU) has been conducting an initiative subbed ‘Silencing the Guns’ that is meant to fight illicit financial flows (IFFs).

Just so we are on the same page, illicit financial flows refer to the illegal movement of money from one country to other various channels including but not limited to tax fraud, money laundering, and other criminal activities.

Now, here is who, what, and how of the matter, but not in any particular order.

How grave is this IFF problem? Every year, Africa is robbed of a shocking $50 billion to IFF. Describing the annual illicit outflow as staggering losses to the continent, UN Deputy Secretary-General Amina Mohammed said;

“These flows pose a threat to stability and security in African countries, undermine institutions and democracy, and jeopardize sustainable development and the rule of law.”

The United Nations Conference of Trade and Development 2020 report placed the IFFs losses …