United Nations Development Programme
Perspectives on Illicit Financial Flows Post-2015
Intergovernmental Organization Perspectives
Human Rights & Economic Justice: Essential Elements of the
Post-MDG Agenda
18 October 2013, Yale University
Ms. Gail Hurley, Policy Specialist, Development Finance, UNDP: gail.hurley@undp.org
Perspectives on Illicit Financial Flows Post2015
Revolution?
Evolution?
Divine
intervention?
Perspectives on Illicit Financial Flows Post2015
Unprecedented global consultation on what should succeed
the MDGs when they expire in 2015
• National consultations in 88 countries
• 11 thematic consultations on issues such as governance,
education and health
• 1.5 million people have voted in ‘My World’ survey
• High Level Panel of Eminent Persons on Post-2015
Perspectives on Illicit Financial Flows Post2015
How will the post-2015 development agreement be paid for:
the million (billion, or even trillion) dollar question
Where will the money come from and what are the
responsibilities of different stakeholders?
Where do illicit financial flows fit into this picture?
Illicit Financial Flows and the MDGs
MDG 8: ‘develop a global partnership for development’
Target 8.A:
Develop further an open, rule-based, predictable, nondiscriminatory trading and financial system
From an operational perspective, it was absent
UN: Incremental progress
2002 UN Monterrey Consensus urged states to finalize United Nations
Convention Against Corruption and support the repatriation of funds illicitly
acquired to countries of origin, and promote stronger cooperation to eliminate
money laundering
United Nations Convention against Corruption (2005): States that have ratified
the convention commit to: “prevent, detect and deter in a more effective
manner international transfers of illicitly acquired assets and to strengthen
international cooperation in asset recovery”
2008 Doha Declaration: “It is vital to address the problem of illicit financial
flows, especially money laundering. Additional measures should be
implemented to prevent the transfer abroad of stolen assets and to assist in the
recovery and return of such assets, in particular to their countries of origin,
consistent with the United Nations Convention against Corruption”
Perspectives on Illicit Financial Flows Post2015
Post-2015: What prospects are there to build on recent
momentum? New ‘SDG 8’?
How should illicit financial flows be incorporated into the
post-2015 sustainable development agreement?
Should there be specific goals or targets related to illicit
financial flows? If so, what should they look like?
Should they apply to all countries?
Perspectives on Illicit Financial Flows Post2015
Important progress has been made which can be
built-on:
•
•
•
•
Automatic exchange of tax information
Transparency provisions in the extractives sector
Asset repatriation
Base erosion and profit shifting
Perspectives on Illicit Financial Flows Post2015
Concretize and try to secure political commitments on key propositions:
• Commitments on country-by-country reporting
• Commitments on beneficial ownership
• Support countries to build regional agreements to address tax
competition and excessive tax incentives
• Commitments to assist countries to build the necessary tax
capabilities and expertise
• An agenda for research and for data collation and dissemination
could be defined in a post-2015 agreement
In reality, the end-outcome is likely to be a more general statement of
intent
Perspectives on Illicit Financial Flows Post2015
Inter-governmental committee of experts on financing for
sustainable development:
http://sustainabledevelopment.un.org/index.php?menu=15
58
Will evaluate proposals and prepare a report on a
sustainable development financing strategy for post-2015
Will conclude its work by August 2014
Thank you for your attention!
Gail Hurley, UNDP: gail.hurley@undp.org
Twitter: @gailmlhurley