African nations charged to fight illicit financial flow

Oct 27, 2016

The fight against illicit financial flow will boost investors’ confidence in Africa

Rwanda's Minister for Finance and Economic Planning, Amb Claver Gatete has called on African nations to fight illicit financial flow in the continent. He made this call while speaking at the third Afreximbank "Due Diligence and Corporate Governance" forum on Wednesday, in Kigali. Gatete described financial crimes as one of the greatest dangers confronting corporate and government organizations globally. Stressing the effect of illicit financial flow in Africa, Gatete said, "In an environment where there is a perception of economic and financial crime, legitimate economic activity is undercut, investment discouraged, it breeds
suspicion and undermines
government legitimacy. Therefore, we need to curtail illicit financial outflows and prevent financial crimes to boost investor confidence." Historically, Africa is estimated to
have lost in excess of $1.7 trillion in illicit financial flows over the last five decades. Additionally, the African Union estimates that over $50 billion is lost annually to illicit financial flows in Africa.
The forum which was attended by over 200 experts, bankers and regulators. It urged African states to build vigorous customer due diligence and good governance systems by making use of technologies, cross-border co-operation and collaboration between regulators, corporate firms and financial institutions respectively.