Financial Crime World

Transnational Crime in Developing Countries: A $1.6 Trillion Annual Threat

According to a new report from Global Financial Integrity (GFI), transnational crime in developing countries is thriving, with an estimated annual value of $1.6 trillion to $2.2 trillion.

Key Findings of the Report: “Transnational Crime and the Developing World”

  • The report, released in March 2017, analyzed various crime types, including drug and human trafficking, illegal logging, and corruption.
  • Over 110 developing and transition countries were covered in the study.
  • Developing countries play a significant role in the global economy, and strengthening anti-money laundering and combating the financing of terrorism (AML/CFT) measures is crucial.

Corruption: A Significant Contributor to Illicit Financial Flows

  • Corruption is identified as a major driver of illicit financial flows, costing the global economy between $1-2.6 trillion per year.
  • Ongoing weaknesses in AML/CFT systems allow illegal proceeds to leave developing countries for havens overseas.

Recommendations to Tackle Transnational Crime

  • Establish robust AML/CFT structures.
  • Share information and intelligence.
  • Coordinate efforts to combat crimes that often cross borders.

Addressing the Root Causes of Transnational Crime

  • Addressing the root causes of transnational crime, such as weak governance and inadequate institutional frameworks, is essential.

Quote from Tom Cardamone, President & CEO of Global Financial Integrity

“Transnational crime does not respect borders, and it has severe consequences for individuals, communities, and entire economies. A coordinated response from the international community is essential if we are to effectively combat transnational crime and reduce its impact on the most vulnerable populations.”

Access the Full Report

To view the full report, visit the Global Financial Integrity website at https://gfintegrity.org/report/transnational-crime-and-the-developing-world/.