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Home / News / First-ever oHcial data on illicit Inancial Jows now available
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First-ever oHcial data on illicit Inancial Jows now available Stories
29 Nov 2022
08 June 2023 UN project supports
UNCTAD and its partners continue to work with several developing countries to produce o:cial data on selected types of Egypt to measure
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Afghanistan, Bangladesh, Colombia, Ecuador, Maldives, Mexico, Myanmar, Nepal and Peru have produced the first-ever national estimates of illicit financial
flows (IFFs) related to drug trafficking, trafficking in persons and smuggling of migrants with the support of the UN Office on Drugs and Crime (UNODC).
The estimates are published on the UN’s Global Sustainable Development Goals (SDGs) Indicators Database. And a recent UNCTAD infographic report
showcases preliminary estimates and findings on tax and commercial IFFs from 11 African countries.
Significantly reducing IFFs by 2030 is one of the priorities under the UN’s SDG 16. UNCTAD and UNODC are co-custodians of SDG indicator 16.4.1, which
measures the total value of inward and outward IFFs in current US dollars.
The two organizations support countries in producing transparent, robust and globally comparable statistics on IFFs.
Statistics
“Such statistics are needed to shed light on the activities, sectors and channels most prone to illicit financial flows, pointing to where actions should be
undertaken as a priority to curb these flows,” said Anu Peltola, who heads UNCTAD’s statistics work.
Programme
Pioneering countries measuring illicit .nancial /ows are sharing Illicit Financial Flows
preliminary results
Projects
Crime-related IFFs Tax and commercial IFFs
Statistics on illicit Inancial Jows in Africa
Developing indicator on illicit Inancial
Jows in Latin America
Measuring and Curbing Illicit Financial
Flows
Measuring illicit Inancial Jows in the
Asia-PaciIc region

Afghanistan
Afghanistan Keywords
Nepal
Nepal
Mexico
Mexico Bangladesh
Bangladesh Goal 16 Peace, Justice and Strong Institutions
Burkina
Burkina Faso
Faso Myanmar
Myanmar |
Colombia
Colombia Ghana
Ghana Illicit Inancial Jows | Statistics
Ecuador
Ecuador Gabon
Gabon Maldives
Maldives
Peru
Peru
Zambia
Zambia
Namibia
Namibia
South
South Africa
Africa

Afghanistan
Afghanistan
© Nepal
OpenStreetMap contributors
Nepal
Mexico Bangladesh
Mexico Bangladesh
Cracking down on IFFs: Inaction isn’t an option Myanmar
Burkina
Burkina Faso
Faso Myanmar
IFFs can take many forms and use different channels
Colombiaand are therefore very difficult
Ghana to track and estimate.
Colombia Ghana
Gabon
But countries can’t afford to stand by and doEcuador
nothing, as IFFs threaten sustainable development.
Ecuador Gabon They depriveMaldives
countries of revenue to finance investments in
Maldives
Peru
critical programmes such as education, health, gender
Peru inclusion and poverty eradication. Zambia
Zambia
Also, IFFs may fuel organized crime and corruption, thus undermining the rule of law and the functioning of institutions and the justice system.
Namibia
Namibia
For example, in Africa, some countries with high IFFs spend on average 25% less on health SouthandAfrica
58% less on education compared with countries with low IFFs,
South Africa
according to an earlier UNCTAD report.

IFFs hit world’s most vulnerable hardest

IFFs can result from various illicit tax and commercial practices, illegal markets, corruption and exploitation, draining state revenues and fuelling illegal activities.
They are directly associated with the violation of human rights, such as in the cases of trafficking in persons and smuggling of migrants.
For example, every year, thousands of migrants and refugees put their lives in the dangerous hands of criminal smugglers when escaping violence, conflict,
poverty and climate disasters.
In those cases, migrants must pay considerable fees to smugglers to facilitate their journey across borders, often in life-threatening conditions. And such a
scourge generates alarming illicit financial flows.
UNODC estimates that the smuggling of foreign irregular migrants to the United States generated over $1.1 billion in inward IFFs per year from 2016 to 2018 for
smugglers based in Mexico.
This is equivalent to the value of total air passenger transportation service exports from Mexico to the rest of the world during the same period.
The enormous profits generated by IFFs from migrant smuggling are likely re-invested in illegal markets, fuelling further instability, corruption and criminal
activities in the region.

Billions siphoned through commercial IFFs

IFFs can also be observed in commercial activities. For example, UNCTAD’s pilot study shows that estimates in Burkina Faso found IFFs in gold exports
between the country and Uganda, as well as with Switzerland.
In Namibia, the study revealed preliminary estimates from trade misinvoicing of $19.6 billion inward IFFs and $4.7 billion outward IFFs between 2018 and 2020.
Kyrgyzstan and Uzbekistan also provided provisional estimates of illicit financial flows linked to trade misinvoicing.
Meanwhile, many pioneering countries in Africa and Asia are finalizing their first estimates of tax and commercial IFFs for reporting to the UN’s Global SDG
Indicators Database by the end of 2023.

Countries are making progress in tackling IFFs

A recent UN General Assembly resolution recognized the significant progress achieved in the global fight against IFFs, while encouraging 193 member states to
report data on SDG indicator 16.4.1, using the statistical concepts and methods provided by UNCTAD and UNODC.
These globally agreed-upon concepts and tested methods help enhance the capacities of relevant officials to track IFFs.
To date, 22 pilot countries have benefited, as they bring together statistical offices, customs, tax authorities, central banks, financial intelligence units, law
enforcement agencies, national ministries and other key agencies to analyse existing administrative and transactions data to track IFFs.
Moreover, a four-year global capacity-enhancing project is underway, coordinated by the UN Economic Commission in Africa (ECA) with support from UNCTAD,
UNODC and all other regional economic commissions.
This project will support interested countries to track IFFs, use the estimates to shape policies, as well as report data on the related SDG indicator.

Time to ramp up =ght against IFFs

In a recent exclusive interview series with UNCTAD and ECA, policymakers and statisticians in Africa underlined that statistical measurement of IFFs matters.
Théodora Aleka-Laban, who works for Gabon’s National Commission for the Fight against Corruption and Illicit Enrichment, envisaged a world without IFFs.
Ms. Aleka-Laban said this would enable “African countries to finance their own development policy without needing to ask for expensive loans and they would
be able to achieve a critical part of the Sustainable Development Goals.”
“This is the Africa we want, and this is why we are fighting against IFFs,” she concluded.

Measuring illicit .nancial /ows

Preliminary results of testing by pioneering countries

Official estimates reported on the Global SDG Indicators

Database Crime-related IFFs

The trafficking in drugs (heroin, cocaine, methamphetamine) was estimated to have generated inward
Mexico IFFs in Mexico for $12 084 million on average per year, between 2015 and 2018. In addition, the smuggling
North America of migrants generated $1 116 million in inward IFFs and $13.8 million in outward IFFs on average per
year between 2016 and 2018.

Cocaine trafficking was estimated to have generated inward IFFs between $1 152 and $8 619 million
Colombia annually between 2015 and 2019. Cocaine trafficking was estimated also to have generated value of
South America outward IFFs from the import of inputs used in cocaine production between $197 million and $267
million per year, between 2015 and 2019.

Ecuador The smuggling of migrants was estimated to have generated outward IFFs for an average of $13.6 million
South America per year, between 2016 and 2018.

Peru Cocaine trafficking inward IFFs were estimated at an annual average of $1 482 million between 2015 and
South America 2017.

Drug trafficking is estimated to have generated an annual average of $481 million in outward IFFs
Bangladesh
between 2017 and 2021. This estimate includes the trafficking in methamphetamine tablets, heroin and
Asia
synthetic opioids such as buprenorphine and phensidyl.

Drug trafficking is estimated to have generated outward IFFs from the Maldives estimated at $16.4
Maldives
million on average per year, between 2020 and 2021. The estimate includes the trafficking in cannabis,
Asia
heroin, cocaine and ecstasy.

Heroin trafficking was estimated to have generated outward IFFs from Nepal at annual average of $4.6
Nepal
million between 2019 and 2021. In addition, the recruitment of Nepali migrants exploited in forced labour
Asia
abroad was estimated to have generated inward IFFs for $3.3 million in 2021.

Afghanistan The potential exports of opiates from Afghanistan were estimated to have generated between $1 300 and
Asia $2 233 million in inward IFFs on average between 2018, 2019 and 2021.

Myanmar The potential exports of opiates from Myanmar were estimated to have generated between $508 and $1
Asia 347 million in inward IFFs on average between 2018 and 2022.

Unofficial and preliminary estimates Tax and commercial IFFs

Burkina Faso Trade misinvoicing was preliminary estimated at $6.8 billion inward and outward IFFs in different sectors,
Africa such as beverages, petroleum and ore between 2011 and 2020.

Gabon Trade misinvoicing was preliminary estimated to have generated $65 billion inward and outward IFFs
Africa between 2010 and 2021.

Ghana Trade misinvoicing was preliminary estimated at $8.4 billion inward and outward IFFs with the United
Africa States of America and the European Union between 2000 and 2012.

Namibia Trade misinvoicing was preliminary estimated to have generated $19.6 billion inward IFFs, and $4.7
Africa billion outward IFFs between 2018 and 2020.

South Africa Trade misinvoicing was preliminary estimated at $21.9 billion inward IFFs, and $40.4 billion outward
Africa IFFs, most prevalent in precious metals and stones, and electrical machinery and equipment in 2017.

Zambia Trade misinvoicing was preliminary estimated to have generated $44.9 billion inward and outward IFFs
Africa based on seven major trading partners between 2012 and 2020.

Unofficial and preliminary estimates are not reported on the Global SDG Indicators Database. All values in United States dollars. Data between countries is not comparable.
SDG=Sustainable Development Goal. IFFs=Illicit Financial Flows.
Source: UNCTAD • Get the data

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