*UNITED NATIONAS – Pakistan has called for more coherent collaboration inintensified efforts against illicit financial flows.*
Speaking in the high-level meeting on ‘International Cooperation to CombatIllicit Financial Flows’, she called for addressing loopholes that impededeveloping countries’ ability to combat illicit financial flows.
She said that Pakistan’s firm resolve against corrupt practices calls for amore proactive role by its partners in line with international legalinstruments, including the UN Convention Against Corruption. “Estimates ofPakistan’s stolen financial resources stashed abroad run into millions ofdollars, for which the government seeks international cooperation tocomplement its intensified domestic efforts.”
The Pakistan envoy said that the illicit financial flows were a keycontributory factor for the economic underperformance of developingcountries and a major obstacle to poverty eradication.
“Illicit Financial Flows have a catastrophic impact on societies; theystifle opportunities, deny vulnerable people access to infrastructure, andcondemn them to a life of inequality and inequity,” Maleeha Lodhi pointedout.
She also stated that despite a plethora of institutions and initiativesdealing with illicit financial flows, significant challenges and gapsremain.
“These include lack of an agreed definition; difficulties in reliablemeasurement due to their disguised nature; increasing use of informationand communication technologies and crypto-currencies by criminals;inadequate participation of developing countries in multilateralinitiatives and their lack of capacity in combating illicit flows.”
The Pakistan envoy said” “Other major hurdles include lack of sufficientpolitical will and familiarity with procedural requirements, secrecy,different evidentiary standards, differences in legal procedures, anddelays in responding to mutual legal assistance requests.”
She also argued that capacity constraints and lack of resources to preventand counter illicit flow of finances was also disproportionally affectingthe developing countries.
Quoting estimates by the UN, Ambassador Lodhi said that illicit financialflows, stemming from criminal proceeds, amount to around US$2.1 trillionannually. “This was almost equal to the annual financing gap of US$2.5trillion faced by developing countries in investment in core SDG-relatedsectors.”