Commonwealth SG calls for urgent action to curb illicit flow of money

The Commonwealth Secretary-General, Patricia Scotland, has called for urgent action to stop the flow of illicit money out of Commonwealth countries, stating that the current global pressure on resources makes tackling corruption even more vital. ALSO READ: Africa losing up to $80bn in illicit financial flows, report shows Scotland made her remarks on Monday at the 13th Annual Commonwealth Regional Anti-Corruption Conference, where she joined heads of Anti-Corruption agencies from across Commonwealth Africa. The conference, a collaboration between the Commonwealth Secretariat and the Seychelles Anti-Corruption Commission, served as a platform for the Association of Anti-Corruption Agencies in Commonwealth Africa to convene and formulate strategies to collectively address systemic corruption and the illicit outflow of funds from the continent. The COVID-19 pandemic created an environment conducive to embezzlement, false claims, kickbacks, and various other forms of corruption. Moreover, the post-pandemic global economic downturn, coupled with rising costs and resource pressures, has rendered Commonwealth countries, particularly small states and developing nations, even more susceptible to the adverse effects of corruption. This crime not only diverts aid money away from its intended purposes but also undermines social and economic development. Scotland highlighted that corruption's impact extends beyond financial implications, adversely affecting education, health, justice, democracy, prosperity, and overall development. It stands as one of the most significant obstacles to achieving the Sustainable Development Goals. Addressing corruption brings multiple benefits, including poverty reduction, increased economic stability and growth, and improved standards of living. According to the United Nations, corruption and illicit financial flows cost the global economy approximately US$3.6 trillion annually. Bribes alone amount to a trillion US dollars, while corruption siphons off an estimated US$2.6 trillion annually, equivalent to over five percent of global GDP. In developing countries, the United Nations Development Programme estimates that funds lost to corruption are ten times the amount of official development assistance received. Africa, in particular, suffers significant losses due to illicit financial flows, estimated at more than US$50 billion annually, and potentially as high as $89 billion or 3.7% of the continent's GDP, as reported in UNCTAD's Economic Development in Africa Report 2020. Over the past five decades, Africa has lost more than US$1 trillion, surpassing the total official development assistance received during the same period. The adverse impact of corruption on aid budgets and government spending disproportionately affects women and girls, who often face limited access to healthcare and education. To tackle this monumental challenge, Secretary-General Scotland called for collaboration among tax authorities, anti-money laundering bodies, and anti-corruption agencies. She emphasized the importance of international cooperation in tracing ill-gotten funds across opaque jurisdictions. President Wavel Ramkalawan of Seychelles acknowledged that combating corruption requires broad collaboration among agencies, stakeholders, experts, and citizens, stressing the need for continuous improvement in these efforts. ALSO READ: Why Africa must fight illicit financial flows The Commonwealth Secretariat is providing practical technical assistance and development support to enhance the effectiveness of national anti-corruption agencies in Commonwealth countries. The Commonwealth comprises 56 independent and equal sovereign states, with a combined population of 2.5 billion, over 60 percent of whom are aged 29 or younger. In June 2022, Gabon and Togo became the 55th and 56th members of the Commonwealth, respectively, with their admission announced during the Commonwealth Heads of Government meeting in Kigali, Rwanda. Prior to this, the last country to join the Commonwealth was Rwanda in 2009.

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Commonwealth SG calls for urgent action to curb illicit flow of money