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Strategic Framework and Action Plan on the Prevention of Illicit Fianancial Flows in Africa 2017 - 2021
Illicit financial flows (IFFs) are illegal movements of money or capital from one country to another often involving Money Laundering, tax evasion, or bribery. The AU-UNECA High Level Panel (HLP) on IFFs defines IFFs as money illegally earned, transferred or used. The definition adapts that of Baker (2005): “money that is illegally transferred and illegally utilized”. Baker’s definition of IFFs has been adopted by the UN, Global Financial Integrity, and World Bank, amongst others. It is a broader term that encompasses Money Laundering, Terrorism Financing illicit trade (such as contrabands, illegal arms and human trafficking), and other forms of illicit financial flows. IFFs are widely acknowledged to be among the most serious contemporary global threats. They occur in national, regional and global terrains that are constantly changing, exploiting opportunities that arise or, in some cases, opportunities which they create. Combating illicit financial flows depends on the quality of national regulations, their implementation and whether they comply with international best practices. Successful strategies to address these related threats need to be well informed, dynamic and adaptive.