ATAF-OECD-UNECA-IDEP host virtual workshop on combatting illicit financial flows
June 4, 2020
04/06/2020 - Over the last three days, 125 participants from 18 Africa member states (Angola, Burkina Faso, Eswatini, Ghana, Kenya, Liberia, Malawi, Mauritius, Morocco, Nigeria, Rwanda, South Africa, Tanzania, Togo, Tunisia, Uganda, Zambia, Zimbabwe) took part in the joint ATAF-OECD-UNECA-IDEP 3-day online workshop dedicated to combatting illicit financial flows (IFFs).
Every year, huge sums of money are transferred out of developing countries both legally as well as illicitly. Although the scale of IFFs continues to be debated, there is a consensus that their value outstrips that of official development assistance (ODA) and foreign direct investment (FDI). SDG 16.4 commits countries to reduce IFFs. There has been significant progress in developing new tools and approaches to address some components of IFFs, but challenges remain in their implementation.
This workshop has focused on the expansion of exchange of information, transfer pricing & trade- mis-invoicing and inter-agency cooperation and coordination. The Mbeki report
has drawn attention to IFFs issues affecting the African continent. Against this background, the UN SDGs and Africa’s Agenda 2063, have highlighted reducing IFFs as a key goal in furthering domestic resource mobilisation and advancing sustainable development.
This workshop was introduced by Professor Annet Oguttu from the University of Pretoria, South Africa, member of the UN High Level Panel on Financial Accountability, Transparency and Integrity (FACTI) and board member of the African Tax Research Network - based at the ATAF. She delivered the keynote address
at this workshop. Professor Oguttu underscored "Africa's ownership in the anti-IFFs campaign, the global concern over IFFs, measures being implemented and those under discussion and the necessity to develop mechanisms and capacity in Africa to tackle IFFs".
As mentioned during the opening remarks, the Economic Commission for Africa (ECA) has shown that the impact on African economies could be the slowing of growth to 1.8 per cent in the best case scenario or a contraction of 2.6 per cent in the worst case. This has the potential to push 27 million people into extreme poverty. Addressing IFFs could support economic recovery and fight poverty.
The participants were trained through virtual interactive training sessions, case studies and related OECD e-learning modules
prior to attending the class. The workshop surfaced a significant need for capacity building in African member States to support countries establish and implement mechanisms and measures for combatting IFFs. Therefore, ATAF, OECD, UNECA and IDEP are committed to supporting African countries to develop the necessary capacities to curb IFFs, and will continue carrying out training and other capacity building activities.
More information:
ATAF www.ataftax.org
IDEP www.uneca.org/idep/
OECD www.oecd.org/tax
UNECA www.uneca.org
The ATAF Model Tax Agreement serves as a guiding instrument to help African nations negotiate treaties that better protect their interests, ensure fair allocation of taxing rights, and enhance domestic revenue mobilisation.
CEMAC and ATAF agreed to explore practical avenues for cooperation, including technical assistance, regional training programmes, and platforms for experience exchange.
A key outcome of the training was the heightened awareness among FIRS officials of the critical role data plays in modern tax administration.
The training aimed to strengthen the capacity of tax officials to detect, investigate, and prosecute financial crimes such as tax evasion, money laundering, and illicit financial flows. It focused on practical approaches to financial crime investigation within the tax context.
Mr. Logan Wort emphasized the critical role of taxpayers in fostering economic growth and sustaining public services.
Taxation is a key aspect to increase gender equality since tax is one of the building blocks of society. In particular, it creates domestic resources which are a major source of funding for economic development and empowerment.
ATAF emphasised the importance of harmonised tax systems and advocating for revenue-generation mechanisms that would sustain government finances while fostering trade liberalisation.
ATAF is gearing up for a highly anticipated event: the ATAF Women in Tax Network Leadership Conference. Set to take place in Cape Town, South Africa, on March 5-6, 2025, this conference promises to be a pivotal moment for women in the tax and economic sectors across Africa.
The ATAF Women In Tax Network (AWITN) pledge is a commitment by various countries to adopt a focused, gender-sensitive approach to tax policy and administration.
The workshop aimed to bridge the gap between tax authorities and the media, improving the clarity and accessibility of tax-related information to foster public awareness and boost tax compliance.
