Pakistan for addressing loopholes against international illicit financial flows
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*UNITED NATIONAS – Pakistan has called for more coherent collaboration in intensified efforts against illicit financial flows.*
Speaking in the high-level meeting on ‘International Cooperation to Combat Illicit Financial Flows’, she called for addressing loopholes that impede developing countries’ ability to combat illicit financial flows.
She said that Pakistan’s firm resolve against corrupt practices calls for a more proactive role by its partners in line with international legal instruments, including the UN Convention Against Corruption. “Estimates of Pakistan’s stolen financial resources stashed abroad run into millions of dollars, for which the government seeks international cooperation to complement its intensified domestic efforts.”
The Pakistan envoy said that the illicit financial flows were a key contributory factor for the economic underperformance of developing countries and a major obstacle to poverty eradication.
“Illicit Financial Flows have a catastrophic impact on societies; they stifle opportunities, deny vulnerable people access to infrastructure, and condemn them to a life of inequality and inequity,” Maleeha Lodhi pointed out.
She also stated that despite a plethora of institutions and initiatives dealing with illicit financial flows, significant challenges and gaps remain.
“These include lack of an agreed definition; difficulties in reliable measurement due to their disguised nature; increasing use of information and communication technologies and crypto-currencies by criminals; inadequate participation of developing countries in multilateral initiatives and their lack of capacity in combating illicit flows.”
The Pakistan envoy said” “Other major hurdles include lack of sufficient political will and familiarity with procedural requirements, secrecy, different evidentiary standards, differences in legal procedures, and delays in responding to mutual legal assistance requests.”
She also argued that capacity constraints and lack of resources to prevent and counter illicit flow of finances was also disproportionally affecting the developing countries.
Quoting estimates by the UN, Ambassador Lodhi said that illicit financial flows, stemming from criminal proceeds, amount to around US$2.1 trillion annually. “This was almost equal to the annual financing gap of US$2.5 trillion faced by developing countries in investment in core SDG-related sectors.”
