Illicit Financial Flows from Developing Countries Over the Decade Ending 2009

Primary Findings

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The Developing World lost US$903 billion in illicit outflows in 2009, despite the massive financial crisis which rocked the global economy in late 2008. The capital outflows stem from crime, corruption, tax evasion, and other illicit activity.

The report finds that the the vast majority of the drop from US$1.55 trillion to US$903 billion was due to a decrease in volumes of international trade, foreign direct invest, and new external loans, rather than any government action. From 2000 to 2009, developing countries lost US$8.44 trillion to illicit outflows.

Conservatively estimated, Illicit flows increased in current dollar terms by 14.9 percent per annum from the beginning until the end of the decade. Real growth of illicit flows by regions over the nine years is as follows:

• Africa 22.3 percent,
• Middle East and North Africa (MENA) 19.6 percent,
• developing Europe 17.4 percent,
• Asia 6.2 percent, and
• Western Hemisphere 4.4 percent.

Asia accounted for 44.9 percent of total illicit flows from the developing world followed by Middle East and North Africa (18.6 percent), developing Europe (16.7 percent), Western Hemisphere (15.3 percent), and Africa (4.5 percent).

Top 10 countries with the highest measured cumulative illicit financial outflows between 2000 and 2009 were:

1. China: $2.74 trillion
2. Russia: $504 billion
3. Mexico: $501 billon
4. Saudi Arabia: $380 billion
5. Malaysia: $350 billion
6. United Arab Emirates: $296 billion
7. Kuwait: $271 billion
8. Nigeria: $182 billion
9. Venezuela: $179 billion
10. Qatar: $130 billion

source - Global Financial Integrity.