Crime, Corruption, Tax Evasion - 991 Billion USD drained from Developing Economies
AS per the latest report of the Global Financial Integrity (GFI), a Washington, DC-based research and advisory organization, a record USD 991.2 billion in illicit capital flowed out of developing and emerging economies in 2012 - facilitating crime, corruption, and tax evasion. The report finds that illicit outflows are growing at an inflation-adjusted 9.4 percent per year-roughly double global GDP growth over the same period.
GFI President Raymond Baker, an authority on financial crime said, "illicit financial flows are the most damaging economic problem plaguing the world's developing and emerging economies;these outflows-already greater than the combined sum of all FDI and ODA flowing into these countries-are sapping roughly a trillion dollars per year from the world's poor and middle-income economies."
Trade Misinvoicing Dominant Channel: The fraudulent misinvoicing of trade transactions was revealed to be the largest component of illicit financial flows from developing countries, accounting for 77.8 percent of all illicit flows - highlighting that any effort to significantly curtail illicit financial flows must address trade misinvoicing.
India ranks third: India ranks third in the list of top exporters of illegal capital, next to China and Russia. The cumulative black money that moved out of India in the last ten years is estimated to be 28 lakh crores.