Economy
India fourth biggest exporter of illicit capital: Report
 With an average annual outflow of $51.03 billion, India is the fourth biggest exporter of illicit capital over a decade with such financial flows surging to $1.1 trillion in 2013, according to a new report.
 
China, with $139.23 billion average annually ($1.39 trillion cumulative), was the biggest exporter of illicit financial flows from developing and emerging economies, according to a study released Wednesday by Global Financial Integrity (GFI), a Washington-based research and advisory organization.
 
Russia with $104.98 billion average ($1.05trillion cumulative) and Mexico with $52.84 billion average ($528.44 billion cumulative) came next.
 
India with $51.03 billion average ($510.29 billion cumulative) was fourth followed by Malaysia with $41.85 billion average annually ($418.54 billion cumulative) ranked fifth.
 
Authored by GFI Chief Economist Dev Kar and GFI Junior Economist Joseph Spanjers, the report pegs cumulative illicit outflows from developing economies at $7.8 trillion between 2004 and 2013, the last year for which data are available.
 
Titled "Illicit Financial Flows from Developing Countries: 2004-2013" the study reveals that illicit financial flows first surpassed $1 trillion in 2011, and have grown to $1.1 trillion in 2013.
 
This marks a dramatic increase from 2004, when illicit outflows totaled just $465.3 billion.
 
"This study clearly demonstrates that illicit financial flows are the most damaging economic problem faced by the world's developing and emerging economies," said GFI President Raymond Baker, a longtime authority on financial crime.
 
"This year at the UN, the mantra of 'trillions not billions' was continuously used to indicate the amount of funds needed to reach the Sustainable Development Goals. Significantly curtailing illicit flows is central to that effort."
 
Illicit financial flows averaged a staggering four percent of the developing world's GDP, the study noted.
 
In seven of the 10 years studied, global IFFs outpaced the total value of all foreign aid and foreign direct investment flowing into poor nations.
 
The IFF growth rate from 2004-2013 was 8.6 percent in Asia and 7 percent in Developing Europe as well as in the MENA and Asia-Pacific regions, the report found.
 
The report recommends that world leaders focus on curbing opacity in the global financial system, which facilitates these outflows.
 
Specifically, GFI suggested that governments establish public registries of verified beneficial ownership information on all legal entities, and all banks should know the true beneficial owner(s) of any account opened in their financial institution.
 
Government authorities should adopt and fully implement all of the Financial Action Task Force's (FATF) anti-money laundering recommendations; laws already in place should be strongly enforced.
 
Policymakers should require multinational companies to publicly disclose their revenues, profits, losses, sales, taxes paid, subsidiaries, and staff levels on a country-by-country basis.
 
All countries should actively participate in the worldwide movement towards the automatic exchange of tax information as endorsed by the OECD and the G20, the report suggested.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Meenal Mamdani

1 year ago

There is complicity among the wealthy of all countries which allows this to happen.
The outflow of money from these countries is an inflow in another country. That country keeps quiet because it is benefiting from the funds coming in.
No wonder drug money and black money flows so freely around the world and entities like ISIS can receive finance with impunity.
In the meantime, ordinary citizens like us are harassed by banks to repeatedly produce documents for KYC.

Cries for help continue as normalcy creeps back in deluged Chennai
Life in flood-hit Chennai is slowly limping back to normalcy, with sun shining on Tuesday, but there were still areas, especially suburban, where the situation is still very grim and relief yet to reach the despondent residents.
 
Rescue and relief operations were going on in water logged areas including north Chennai, Thiruvarur, Nagapattinam and Cuddalore districts, but some areas were still cut off.
 
"The Anakaputtur area (a Chennai suburb but falling under Kanchipuram district) is still under several feet of water with government relief measures not reaching the people there," Geetha Mohandas, a resident, told IANS.
 
Even in city where the flood water has receded, life continues to be a struggle as people have to clear the slush and also look out for safe drinking water as the piped water is contaminated with sewage.
 
Shops opened up and a massive clean up operation have been initiated in the affected districts where the water levels have receded.
 
Schools and colleges remain closed in 12 districts. Chief Minister J.Jayalalithaa said the half-yearly exams should be held only January 2016 and this is applicable to all schools in the state.
 
She also said domestic users can pay their power bills up to January 31, 2016.
 
Resumption of auto-rickshaw services and public transport made people's life easier after being completely crippled for the past six days. Southern Railways however has cancelled some long distance trains at Chennai Central and Chennai Egmore stations.
 
General insurers are expecting a flood loss claims out go of not less than Rs.1,500 crore towards damages to factory stocks, vehicles and others.
 
Car maker Maruti Suzuki India Ltd announced that it is geared up to meet the rush for vehicle servicing post floods by bringing technicians from other parts of the country and two truck loads of spare parts.
 
Corporates have started contributing to the relief fund with information technology player Cognizant committing Rs.260 crore towards relief works and loan assistance to its employees and business partners.
 
Congress vice president Rahul Gandhi meanwhile visited Chennai, Cuddalore and Puducherry to see the situation.
 
Meanwhile, the weather department has forecast heavy rains in coastal Tamil Nadu, including Chennai, due to low pressure in Bay of Bengal.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Russia targets IS from submarine deployed in Mediterranean
Russia attacked the Islamic State positions in Syria with Kalibr missiles fired by the submarine deployed in the Mediterranean Sea, Defence Minister Sergei Shoigu said on Tuesday.
 
"It was the first time that Kalibr cruise missiles were fired by the Rostov-on-Don submarine from the Mediterranean Sea," Tass news agency quoted Shoigu as saying during a meeting with Russian President Vladimir Putin. 
 
According to Shoigu, the missile launch was carried out by the sub from a submerged position, striking two major targets of the IS.
 
"The objectives were two major points of terrorists in Syrian Raqqa province ... We are confident to say that the strikes brought quite significant damage to an ammunition warehouse and a mine plant, as well as to the oil infrastructure," Shoigu said. 
 
According to him, both Israel and the US were informed of Russia's plans of striking terrorist positions using missiles from the submarine.
 
The Russian minister also said that in the past three days, more than 300 sorties were made by Tu-22 long-range bombers and other Russian aircraft deployed at Syria's Hmeimim airbase, hitting more than 600 targets.
 
During the meeting, Putin urged an analysis of the damage and functions of new high-precision weapons which were used in Russian airstrikes in Syria.
 
"Both Kalibr and Kh-101 missiles have performed well. These are new, state-of-the-art highly efficient weapons, and now we see it, " Putin said. "These weapons can be equipped with both conventional and special, even nuclear, warheads. Naturally, such weapons will not be needed in anti-terrorist efforts and I hope they will not be needed at all."
 
Moreover, the black box of the downed Russian Su-24 warplane in late November was presented to Putin at the meeting.
 
"As I understand, the flight data recorder will give us the opportunity to confirm the Su-24's trajectory from the moment of its take-off to its crash," Putin said. "This means we will be able to understand where it was (at the moment of the downing) and where the treacherous strike from the Turkish Air Force was conducted."
 
Putin urged a "thorough, attentive and high-professional" study of the flight recorder with international experts, inviting "anybody who would like to join."
 
The Su-24 was shot down on November 24 by Turkey over purported airspace violation of Turkey by the Russian fighter jet and ignorance of multiple warnings, while Russia insisted the Su-24 flew over Syrian skies during the whole flight.
 
According to Putin, the information obtained from the flight recorder would not change Russia's attitude to what the Turkish authorities did.
 
"I repeat that we used to regard Turkey not only as a friendly country also as an ally in fighting terrorism. No one expected such a mean and treacherous stab in the back," Putin said.
 
Ties between Moscow and Ankara worsened drastically after the incident, with Russia imposing a series of sanctions on Turkey and calling off its military contacts with Turkey.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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