tailieunhanh - Corruption and illicit financial flows in Nepal

In recent years, considerable intellectual interest has arisen over the extent of illicit financial flows which may have development, governance or other consequences for both developed and developing countries. Illicit financial flows involve the cross-border transfer of the proceeds of corruption, trade in contraband goods, criminal activities, and tax evasion. The main objective of this article is to explore the current situation of illicit financial flows from the developing countries with special reference to south Asia and Nepal. The article also explains its causes, impact and measures to stem those flows. Although much effort and resources have been used to stem the illicit financial flows in the world, it is in increasing trend specially in case of developing world. | CORRUPTION AND ILLICIT FINANCIAL FLOWS IN NEPAL Tara Prasad Bhusal ABSTRACT In recent years considerable intellectual interest has arisen over the extent of illicit financial flows which may have development governance or other consequences for both developed and developing countries. Illicit financial flows involve the cross-border transfer of the proceeds of corruption trade in contraband goods criminal activities and tax evasion. The main objective of this article is to explore the current situation of illicit financial flows from the developing countries with special reference to south Asia and Nepal. The article also explains its causes impact and measures to stem those flows. Although much effort and resources have been used to stem the illicit financial flows in the world it is in increasing trend specially in case of developing world. Key Words Illicit financial flows corruption money laundering tax havens. INTRODUCTION The term illicit financial flows is understood differently by different stakeholders. At one end of the spectrum IFFs are defined strictly as capital flows that are illegal in the way they are created transferred or utilized. Funds that are illegally earned transferred or utilized are called illicit financial flows IFF . Global Financial Integrity GFI classifies this movement as an illicit flow when the funds are illegally earned transferred and or utilized. Some examples of illicit financial flows might include A drug cartel using trade-based money laundering techniques to mix legal money from the sale of used cars with illegal money from drug sales an importer using trade mis-invoicing to evade customs duties VAT or income taxes a corrupt public official using an anonymous shell company to transfer dirty money to a bank account in the United States an human trafficker carrying a briefcase of cash across the border and depositing it in a foreign bank or a terrorist wiring money from the Middle East to an operative in Europe GFI 2016 . .