UNODC UNCTADUNODC Conceptual framework for the statistical measurement of Illicit Financial Flows IFFs at the crossroad of multiple policy agendas Vehicle to finance terrorism Instrument for committingfacilitating corruption ID: 1029467
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1. Enrico BisognoChief, Data Development and Dissemination SectionUNODC UNCTAD-UNODCConceptual framework for the statistical measurement of Illicit Financial Flows
2. IFFs at the crossroad of multiple policy agendasVehicle to finance terrorismInstrument for committing/facilitating corruptionVehicle to foster illegal markets or invest related proceedsInstrument for tax evasion or avoidanceloss of public resourcesrule of law erosionweakening of justice system and rule of lawthreat to state security
3. The framework: 2030 AgendaGoal 16 – Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levelsTarget 16.4: By 2030, significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organized crimeIndicator 16.4.1: Total value of inward and outward illicit financial flows (in current US Dollars)UNODC and UNCTAD, as co-custodians of indicator 16.4.1, are mandated to develop the statistical methodology
4. IFFs for statistical purposes Monetary measure of:International transfers of illicitly earned capital(Originally) legal capital transferred internationally for illicit purposes(Originally) legal capital transferred illicitlyIllicitCross-Bordernot domesticFlowsno stocksno net flowsCore Elements:
5. Distinguishing four types of IFFs
6. IFFs from illegal markets/activitiesCorruptionExploitation-type and terrorism financingIllegal marketsDrug traffickingFirearm traffickingIllegal miningSmuggling of migrantsSmuggling of goodsWildlife trafficking…Bribery Embezzlement Abuse of functions Trading in influence Illicit enrichment Other acts of corruptionKidnapping Slavery and exploitationTrafficking in personsSexual exploitationExtortionRobberyBurglaryTheftFinancing of terrorismProductive activitiesNon productive activities
7. Drug importing and consumption countryValue is generatedIFFIFFDrug processing, wholesale and retail saleExample: IFFs emerging from drug trafficking
8. Dual Focus in Measuring IFFs Illicit financial flows connected to illicit markets and their functioningLinked to transnational supply and demand of illicit goods and servicesIllicit financial flows to manage income generated from illicit activitiesLinked to consumption and investment patterns of illicit actorsIncome GenerationIncome Management
9. IFF from opiates trafficking, Afghanistan (income generation)
10. Statistical Framework for Measuring IFFsKey features:Country-Level: Allows to measure IFFs at the level of countries (in line with SDG indicator framework)Disaggregated: separate estimates for each IFF type Comprehensive: Encompasses main types of illicit activities that cause IFFsCompatible: Aligned to established concepts and standards from economics and accounting