Illicit financial flows [IFFs] are a complex global challenge. The term refers to financial flows that are illicit due to their origin [for example from environmental crime], their utilisation [such as funding terrorism] or the purpose of the transfer itself [money laundering, for instance].
IFFs have a particularly devastating impact on low-income countries and undermine international efforts to affect lasting positive change. In addition, illicit activities linked to IFFs destabilise societies and increase the risk of violent conflict.
Countries around the world lose trillions due to IFFs every year. This in turn hinders urgently needed investments in public services.
Furthermore, a country’s access to international funding depends in part on its ability to prevent ‘dirty money’ from finding its way into its financial system.
Objective
Global, regional and national systems for the development-oriented fight against illicit financial flows are strengthened.
Approach
The program pursues a holistic approach against illicit or legally questionable financial transfers [‘follow the money’]. Since IFFs transcend national borders, the program is promoting more standardised policies against money laundering and terrorist financing nationally, regionally and globally.
To that end, the program implements the following measures with a focus on Africa, Latin America and the Western Balkans:
The number in the colored box on the left represents the country’s score for a particular index. The bar below shows the country relative to other countries, with the total number of ranked countries shown to the right. Each index is a separate entity, with a unique scale. The "view heat map" button opens both a visual map of all countries, as well as a table of scores of all countries included in the index.
Corruption Perceptions Index
Score 39
The Corruption Perceptions Index [CPI] ranks countries in terms of the degree to which corruption is perceived to exist in the misuse of public power for private benefit. Source: Transparency International open_in_new [2021]
DHL Global Connectedness Index
Score 66.22
Score based on a nation's integration into the world economy. [Higher score corresponds to more globally integrated.] Source: DHL open_in_new [2019]
Ease of Doing Business Rank
Score 69.8
The Ease of Doing Business Rankings measures the vibrancy of a country’s business environment based on business regulations in place. Source: Doing Business open_in_new [2020]
Economic Complexity Index
Environmental Performance Index
Score 20.1
The 2018 Environmental Performance Index [EPI] ranks 180 countries on 24 performance indicators across ten issue categories covering environmental health and ecosystem vitality. Source: Environmental Performance Index open_in_new [2022]
Financial Secrecy Index
Score 299.3
The Financial Secrecy Index ranks jurisdictions according to their secrecy and the scale of their offshore financial activities. A politically neutral ranking, it is a tool for understanding global financial secrecy, tax havens or secrecy jurisdictions, and illicit financial flows or capital flight. Source: Financial Secrecy Index open_in_new [2020]
Freedom of the Press
Score 84
The Freedom of the Press Survey assesses the degree of print, broadcast, and internet freedom of every country in the world. Source: Freedom House open_in_new [2017]
Global Competitiveness Index
Score 61.5
The Global Competitiveness Report provides a description of the economic competitiveness of a country based on enabling high productivity levels. Source: World Economic Forum open_in_new [2019]
Global Connectivity Index
Score 41
The GCI was created to analyze a broad spectrum of indicators for ICT Infrastructure and digital transformation to provide a comprehensive map of the global digital economy. Source: Global Connectivity Index open_in_new [2020]
Global Enabling Trade Index
Score 4.26
The Global Enabling Trade Report analyzes which countries across the world enable trade from country to destination based on the free flow of goods across borders. Source: World Economic Forum open_in_new [2016]
Global Entrepreneurship Index
Score 26
The GEDI methodology collects data on the entrepreneurial attitudes, abilities and aspirations of the local population and then weights these against the prevailing social and economic 'infrastructure' – this includes aspects such as broadband connectivity and the transport links to external markets. This process creates 14 'pillars' which GEDI uses to measure the health of the regional ecosystem. Source: The Global Entrepreneurship and Development Institute open_in_new [2019]
Global Innovation Index
Score 37.9
The Global Innovation Index provides detailed metrics about the innovation performance of 127 countries and economies around the world. Its 81 indicators explore a broad vision of innovation, including political environment, education, infrastructure and business sophistication. Source: The Global Innovation Index open_in_new [2018]
Global Manufacturing Competitiveness Index [GMCI]
Score 56.5
The Global Manufacturing Competitiveness Index [GMCI] ranks the manufacturing competitiveness of a country based on factors such as labor, materials, energy, and access to talented workers. Source: Deloitte Touche Tohmatsu Limited open_in_new [2016]
Global Opportunity Index
Score 68
The Milken Institute Global Opportunity Index [GOI] tracks countries' performances around five categories: Economic Fundamental, Financial Services, Business Perception, Institutional Framework, and International Standard and Policy. Source: Milken Institute open_in_new [2023]
Global Services Location Index
Score 6.05
The Global Services Location Index measures the viability of countries as a potential offshore destination for services. Source: A.T. Kearney open_in_new [2021]
ICT Development Index [IDI]
Score 4.43
The ICT Development Index [IDI], which has been published annually since 2009, is a composite index that combines 11 indicators into one benchmark measure. It is used to monitor and compare developments in information and communication technology [ICT] between countries and over time. Source: ICT Development Index [IDI] open_in_new [2017]
Index of Economic Freedom
Score 61.8
Grades each country on a scale of 0 to 100, based on ten freedoms, with 100 representing the greatest amount of economic autonomy from government intervention. Source: Heritage Foundation open_in_new [2023]
International Logistics Performance Index [LPI]
Score 3.27
The Logistics Performance Index [LPI] evaluates the capacity of a country to efficiently move goods and connect manufacturers and consumers with international markets. Source: World Bank open_in_new [2018]
International Property Rights Index
KOF Index of Globalization
Management Index [Political Leadership Towards Democracy and a Market Economy]
Score 4.73
The Management Index evaluates the reform activities of political decision-makers in working toward a market-based democracy Source: Bertelsmann Stiftung open_in_new [2020]
ND- Gain Country Index
Score 47.12
The ND-GAIN Country Index summarizes a country's vulnerability to climate change and other global challenges in combination with its readiness to improve resilience. It aims to help governments, businesses and communities better prioritize investments for a more efficient response to the immediate global challenges ahead. Source: ND- Gain Index open_in_new [2020]
Networked Readiness Index [NRI]
Score 3.93
The Networked Readiness Index [NRI] evaluates how conducive a country is to the development of a network of information and communication technologies. Source: World Economic Forum open_in_new [2016]
Open Budget Index
Overall Best Countries Rank
Score 40
The Best Overall Countries Ranking is based on how global perceptions on a variety of attributes could potentially increase trade, travel, and investment as well as directly affect the national economy of a country. Source: U.S. News and World Report open_in_new [2021]
Paying Taxes Indicator
Score 69
The Ease of Paying Taxes Survey ranks countries based on their total tax rate as well as measuring the administrative burden of paying taxes. Source: PwC open_in_new [2020]
Price of a Big Mac in Dollars
Status Index [Political and Economic Transformation]
Score 4.82
The Status Index evaluates the political and economic transformation dimensions of a country based on how well the ground rules for democracy are anchored in society. Source: Bertelsmann Stiftung open_in_new [2020]
Additional rankings and indices are available in the Rankings section of the globalEDGE Resource Directory.
What are illicit financial flows from developing countries?
Illicit financial flows refer to the movement of money across borders that is illegal in its source [e.g. corruption, smuggling], its transfer [e.g. tax evasion], or its use [e.g. terrorist financing].
What is the full form of GFI in economics?
Global Financial Integrity [GFI] is a Washington, DC-based think tank focused on illicit financial flows, corruption, illicit trade and money laundering.
What are the illicit financial flows in Mozambique?
Illicit financial flows [IFF] in Mozambique can be attributed to high levels of informal economic activity, corruption, illegal activities such as poaching and commercial practices such as trade mis-invoicing.
What is the global financial integrity report on Bangladesh?
Global Financial Integrity, a financial corruption watchdog from DC, USA, has reported that an estimated 90 billion dollars were laundered out of Bangladesh from 2011-2018, around 7,200,000,000,000 takas [720,000cr takas].