The IMF and the Fight Against Illicit Financial Flows

What are illicit financial flows?

Illicit financial flows refer to the movement of money across borders that is illegal in its source (e.g. corruption, smuggling), its transfer (e.g. tax evasion), or its use (e.g. terrorist financing).

For decades, the IMF has played a key role in international efforts to combat these opaque and often destabilizing transfers. It also has longstanding concerns with flows that are not strictly illegal but are associated with tax avoidance.

 

Loading component...

How big a problem are ITAFF?

ITAFF are inherently difficult to measure given the illegality and opacity associated with some of these flows, their transfer across borders, and the lack of transparency into the activities that underlie them. Many of these flows are generated by activities that are deemed financial crimes in the context of anti-money laundering and combating the financing of terrorism (AML/CFT). Attempts to measure ITAFF rely on indirect methods, so estimates are often approximations and sometimes incorrect. Nevertheless, evidence suggests that these flows may be substantial.

 

Loading component...

Loading component...

Loading component...

Loading component...