Recovering Illicitly-Obtained Assets Can Boost Development in Developing Countries
A significant portion of illicitly-obtained assets linked to serious criminal activity, both domestic and international, can provide developing countries with much-needed resources for development. By prioritizing the tracing, seizure, confiscation, and recovery of these assets, governments can not only deter criminality but also fund high-priority development needs in sectors such as health, education, and infrastructure.
The Benefits of Asset Recovery
- Provides much-needed resources for development
- Deters criminal activity
- Funds high-priority development needs in sectors such as health, education, and infrastructure
International Efforts to Combat Illicit Financial Flows (IFFs)
The United Nations has played a crucial role in developing conventions and standards to combat IFFs. The Addis Ababa Action Agenda invites countries to publish estimates of IFFs, while the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs) call on countries to reduce IFFs by 2030.
International Organizations Involved in Combating IFFs
- European Union
- Organization for Economic Cooperation and Development (OECD)
- Camden Asset Recovery Inter-Agency Network
Armenia’s Struggle Against Illicit Financial Flows
The Republic of Armenia, a landlocked country in the South Caucasus region, has struggled to combat illicit financial flows. With an economy that has undergone significant transformation since its independence from the Soviet Union, Armenia faces challenges related to corruption, organized crime, and money laundering.
The Importance of International Cooperation
International cooperation is key to combating IFFs. Governments must work together to:
- Share intelligence and best practices
- Strengthen legal frameworks and regulations
- Enhance law enforcement capacity-building
Conclusion
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Recovering illicitly-obtained assets can have a significant impact on development in developing countries. By implementing effective mechanisms to combat IFFs and strengthening international cooperation, governments can not only deter criminality but also create opportunities for sustainable growth and development.