Launch of AU HLP Report Highlights Urgent Need to Combat Illicit Financial Flows
“The executive director,FirstSource Money, Dr Redge Nkosi while giving his address said that Africa is losing a lot of money due to financial flows“
Ms. Souad Aden-Osman, Executive Director of the CoDA/AU HLP-IFFs Secretariat, addresses participants during a high-level meeting on strengthening efforts to curb illicit financial flows and promote economic accountability across Africa.
By Peter Otieno
Coalition for Dialogue on Africa(CoDA) has released a report on the successes and challenges of implementing the recommendations of African Union High Level Panel on Illicit Financial Flows(AU HLP-IFFS).
The report presents the practical challenges encountered by African governments in implementing the AU HLP-IFFS recommendations,chart the way and propose the institutional reorganization of Africa’s financial systems to enhance the fight against Illicit Financial Flows(IFFS).
During the launch of the report at Serena Hotel in Nairobi, the executive director CoDA/AU HLP-IFFS Secretariat Ms. Souad Aden-Osman highlighted on the content of the report and call for action to curb Illicit Financial Flows.
Ms Souad emphasized on the call to close system loopholes,inter-agency corporation, information sharing and enforcement strategies to serve as tools towards reclaiming Africa’s wealth for sustainable development.She urged AU Member States to fully embrace and implement AU HLP-IFFS Secretariat’s Report as a way to fight illicit financial flow.
The executive director,FirstSource Money, Dr Redge Nkosi while giving his address said that Africa is losing a lot of money due to financial flows and urged African Member States to set up systems to safeguard resources and curb money laundering and terrorism funding.
Senior Advisor CoDA/AU HLP-IFFS Secretariat, retired governor, Central Bank of Tanzania,Prof. Florence Luoga restated that there is need to come up with strategies in Africa from Africa’s perspective for ultimate solutions to African problems like setting up standards that prevents African leaders from exploitation but instead endeavor to develop resources. Recognizing the intensity of iffs, having personnel in the continent who clearly understands illicit financial flows and can identify the gaps for improvement. Prof. Luoga also warned African leaders against overtaxing citizens instead of deriving low taxation through State-owned Commercial Banks(SOCBs)and using the available resources to create job opportunities.
The report points out some Key Actions for change in the fight against Illicit Financial Flows, which includes;
1. Ensuring Monetary Sovereignty- that State-owned banks and domestically-based capital markets should be strengthened to support economic transformation,free from dependence on profit-maximizing foreign capital.
2. Align Financing Continental Priorities- that African Financial Institutions should step up support for continental commitments such as coherent action against IFFS and effective asset recovery as well as directing resources to the continents most pressing developmental needs.
3. Settle the Measurement Debate-to prioritize the adoption of proven approaches such as the Partner Country Method(PCM) and Price Filter Method(PFM) supported by technical working groups to ensure IFF data is credible, consistent and transparent.
4. Extract Optimal Value from Natural Resources-Africa’s extractive wealth must serve as a foundation for growth and structural transformation with revenues channelled through domestic banking and monetary to finance long-term investments.
5. Achieve an Inclusive Coordination Platform-that fragmented and temporary structures must give way to one legitimate,responsive and inclusive continental platform under the leadership of the AU HLP.
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