• Friday, March 01, 2024
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ECOWAS group, ICPC urge African leaders to step up fight against illicit financial flow

ECOWAS group, ICPC urge African leaders to step up fight against illicit financial flow

Edwin Harris, the Director-General of the ECOWAS Inter-Governmental Action Group Against Money Laundering In West Africa (GIABA), Senegal, has urged African leaders to step up efforts in the fight against Illicit Financial Flows (IFF) in the region.

Harris made the call while delivering a lecture at the 11th anniversary annual lecture of Realnews and investiture into the Realnews Hall of Fame on Tuesday in Lagos.

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The theme of the lecture is :” The Threats of Illicit Financial Flow to the African Economy”.

He stated that IFFs are a systemic problem requiring a systemic solution and as such, African leaders cannot afford to relax in the fight against a cankerworm that threatens their sustainable development.

The director-general noted that IFFs as money illegally earned, transferred or used in violation of laws in their origin, or during their movement or use, and are therefore considered illicit.

”IFFs from Africa typically originates from three sources, which are : corruption, including money acquired through bribery and abuse of office by public sector and private sector officials.

”Others are criminal activities, ranging from trafficking in people and drugs, arms smuggling, fraud in the financial sector, such as unauthorised or unsecured loans, money laundering, stock market manipulation and outright forgery,” he said.

Harris also mentioned commercial activities, arising from business-related activities, and having several purposes, including hiding wealth, evading or aggressively avoiding tax, and dodging customs duties and domestic levies.

The GIABA director-general said that the United Nations Economic Commission for Africa (UNECA) High Level Panel (HLP) on IFFs had stated that Africa is estimated to have lost one trillion dollars or more over the past 50 years to IFFs.

The commission, he said also revealed that the continent is estimated to lose more than $50 billion annually in IFFs .

Harris stressed that this was corroborated by the Organisation for Economic Co-operation and Development (OECD) which estimated that Africa loses as much as $60 billion each year in IFFs.

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He stated that in 2020, the UN Conference on Trade and Development (UNCTAD), in its report on Economic Development in Africa, estimated that Africa loses about US$88.6 billion, 3.7 per cent of its Gross Domestic Product (GDP), annually in IFF.

Harris said, at a regional level, the scale of criminal proceeds in the West Africa has been estimated at 3.6.per cent of global gross domestic product (GDP) .

“IFF are a global phenomenon and do not respect borders. They undermine global social, political and economic security and have become a serious threat to the attainment of development agenda, particularly in Africa.

“Africa’s efforts to ensure the reduction of IFFs must be pro-active, firm and unwavering while activities that give rise to IFFs must be vigorously fought without compromise.

“The key task is to take bold steps, cooperate and coordinate efforts, and unit to dismantle the system extracting wealth from Africa, ” he said.

According to him, this requires collective actions by all critical stakeholders, including national authorities, the private sector and civil society organisations to press for change in their countries and the continent at large.

Harris commended Realnews and other media houses in Africa for their effort in fighting against IFFs.

In her welcome address, Maureen Chigbo, the Publisher of Realnews said that the anniversary lecture series is one way the medium contributes to nation-building and development.

Chigbo said Realnews does this by providing a forum for policy change-oriented discussions by professionals, scholars, technocrats and decision-makers on the way forward for our great nation and Africa in general.

“The lecture series since 2014 have focused elections, economy, security, challenges of leadership in Africa, Africa’s political transitions oil and gas, unfolding integration of the African Market, and drug abuse among youths in Africa.

“This year, we zeroed in on “Threats of Illicit funds flow to the African Economy”, because of our deep concern about the nefarious effect of illicit funds flow on the economy, resulting in dwindling revenue for Africa governments,” she said.

According to her, the theme of the lecture was borne out of a revelation by Auwal Rafsanjani, Executive Director, Civil Society Legislative Advocacy Centre (CISLAC) on Oct. 22, that Nigeria lost $18 billion yearly to IFFs through the banking sector.

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In a panel discussion, Kayode Adedayo, Director of Proceeds of Crime Department, Independent Corrupt Practices and Other Related Offences Commission (ICPC) said African countries must prioritise the prevention of the movement of illicit funds from their territories.

Also, Felix Obiamalu, Associate Director of Legal and Sanctions, Nigeria Financial Intelligence Unit (NFIU) urged the Federal Government to establish a clear and up-to-date policy and guidelines on how to combat IFF in Nigeria.