BRICS and Illicit Financial Flows
There is a growing sense of anguish among the citizens across the world with the increasing number of public disclosures exposing how a small group of global elite (individuals as well as MNCs) have been abusing the loopholes in national and global financial structures for their personal gain at the expense of the State. This small group consists of people from diverse backgrounds – politicians, business people, sports persons and people from the entertainment industry, among others. They (mis)use the technical legal provisions or bypass them to move the funds/money around the globe escaping the eyes of tax officials and government authorities. These kinds of fund movements are globally known as “Illicit Financial Flows (IFFs)” while in India the more common term used is “Black Money”. Global Financial Integrity (GFI), a US-based think-tank, defines Illicit Financial Flows or IFFs as –
Movements of money or capital from one country to another that is illegally earned, transferred, or utilised.
Examples of such flows include, but are not limited to, money laundering, proceeds from criminal activities and income from corruption.