International Development and Illicit Financial Flows: What to do?

9 November 09:00 – 11:00

Session Description

Organizers: U4 Anti-Corruption Resource Centre, Organisation for Economic Co-operation (OECD) and GIZ (Gesellschaft für Internationale Zusammenarbeit) on behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ)

The aim of the workshop is to help international development agencies and practitioners to better understand the challenges of such a multi-faceted and complex agenda like Illicit Financial Flows.

As a first step, the workshop will build a common understanding with participants on what Illicit Financial Flows are. Although debate has been significant among NGOs and researchers in this area, the same cannot be said of debates around development agencies. Therefore, it is important to consider that the topic of IFF is understood to cover different types of flows (from corporate tax evasion to proceeds of crime). Depending on what definition is used, the areas of intervention for development agencies and practitioners differ.

The next step is to discuss the role of international development agencies to fight illicit financial flows? The discussion will focus on the selected working question: What is needed to ensure that transparency and accountability standards are rooted and enforced in the world of money? Four key topics will be addressed to answer this question:

(1) Cooperation: Which partners will the development community need to select to address the issue of IFFs? Usually, the selection of partners concentrates on local partners in developing countries. The complexity of the IFF agenda seems to require that development agencies cooperate with other institutions in their home countries, including their ministries of finance, justice, prosecuting authorities, their law enforcement agencies and so on. Possible interaction with the civil society and private sector should also be discussed.

(2) Process management: Development agencies try to support their partners in change management with expertise and management advice. It might therefore be useful to choose sectoral approaches instead of whole governance since the IFF agenda is already complex enough and management advice can be better integrated into sectors.

(3) Learning and innovation: Do we have enough evidence to determine what works best when fighting IFFs? Which IFF solutions are desired by the governments and people of developing countries need to be identified. Based on that, development agencies have to identify existing transparency and accountability standards from the world of money that can be sustainably mainstreamed into partner institutions to create a global framework. By introducing existing best practices and referring to new innovative ways to spend ODA budget, participants will expand their understanding on the possible ways in which development agencies can contribute to increase transparency and accountability in the world of money.

(4) Economic efficiency: Proper risk analysis is a starting point for determining where and how ODA funds should be spent on the IFF agenda. What instruments are out there to determine whether and where the risks are? There is a need to avoid IFF programming becoming the next new thing, with donors spending resources on it in countries on in sectors where IFF issues are not major risks.

Session coordinator’s name:
Philipp C. Jahn
Legal Adviser, GIZ Anticorruption and Integrity Program

Session /Moderator
Stefanie Teggemann
Head, Anticorruption and Integrity Program
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Abderrahan Ladgham
Minister, Government of Tunisia
Topic: State Perspective

Markus Busch
German Ministry of Justice (BMJ)
Legal Aspects of Asset Recovery

Sylvia Bluck
Topic: Lesson learnt from DfID’s Project in London

Richard A. Boucher (tbc)
Deputy Secretary-General, OECD
Topic: Policy Perspective

Name: Kjetil Hansen
Organisation: OECD

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