Capital flight and the banking sector
Capital flight erodes the financial basis of developing countries, and the illicit financial flows are a major constraint for the implementation of efficient development policy by facilitating corruption, tax evasion and organized crime. The role of banks and financial institutions in facilitating capital flight is acknowledged, but there is a need for more systematic studies of the banking sector’s involvement to be able to formulate policies to address the problem. On this background Norad has commissioined CMI to conduct a review of existing literature on the role of banks and financial institutions in capital flight from Africa. This mapping study is an initial step in the process to identifying possible areas for Norwegian development aid interventions related to capital flight.
The paper will focus on Africa because of the large challenges connected to the relatively unregulated banking sector in many African countries. The project is a desk study that will produce a literature review that is addressing the following issues:
- What literature exists on the issue?
- What are the main concerns and areas of focus in the existing literature?
- What does the literature say are the most common methods when using banks to channel illegal money flows?
- Which actors and institutions are currently occupied with the issue?
- Which knowledge gaps can be identified?
The full report can be accessed here:
Lifting the Veil of Secrecy: Perspectives on International Taxation and Capital Flight from Africa
Odd-Helge Fjeldstad, Sigrid Klæboe Jacobsen, Peter Henriksen Ringstad, Honest Prosper Ngowi
Proxy indicators for the corrupt misuse of corporations
Mihály Fazekas, Bence Tóth
Illicit Flows and Trade Misinvoicing: Are we looking under the wrong lamppost?
Comment to CMI insight number 5: Illicit Flows and Trade Misinvoicing: Are we looking under the wrong lamppost?
Should developing countries establish petroleum funds?
The Energy Journal
Local Content in Tanzania’s Gas and Minerals Sectors: Who regulates?
Jesse Salah Ovadia
Has the EITI been successful? Reviewing evaluations of the Extractive Industries Transparency Initiative
Päivi Lujala, Siri Aas Rustad, Philippe Le Billon