Fraud, Theft and Money Laundering Totaled $1.1 Trillion in 2013, Says Report

YeGon millionsA new report published by Washington, DC-based Global Financial Integrity (GFI), a research and advisory nonprofit, declared that “illicit financial flows” such as money laundering, theft, fraud or embezzlement, have hit a record US $1.1 trillion in 2013.

Researched and written by GFI Chief Economist Dev Kar and GFI Junior Economist Joseph Spanjers, the report used research from data on fake trade invoices and “leakages in balance of payments”, defined as speculative capital flows from one country to another to profit from changing interest rates.

Faking trade invoices “is the primary and measurable means for shifting funds out of developing countries illicitly,” the report says, accounting for an average of 83 percent of fraudulent transactions tracked during the decade covered by the study.

According to the report, in the past decade the developing world has lost US$ 7.8 trillion to fraud, theft and money laundering which has increased at an average of 6.5 percent yearly to add up to about 4 percent of the developing world’s GDP.

Source: OCCRP

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