Thailand ranked eighth in illicit financial outflows, study finds

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Thailand ranked eighth in illicit financial outflows, study finds
THE NATION

BANGKOK: -- THAILAND IS ranked eighth by the volume of illicit outflows, just ahead of Indonesia and Nigeria, according to a study released on Wednesday by Global Financial Integrity (GFI), a Washington, DC-based research and advisory organisation.

Titled "Illicit Financial Flows from Developing Countries: 2004-2013", the study claims that illicit financial flows first surpassed US$1 trillion in 2011, and grew to $1.1 trillion (Bt39 trillion) in 2013 - marking a dramatic increase from 2004, when illicit outflows totalled just $465.3 billion.

The study ranks the countries by the volume of illicit outflows. According to the report, the 10 biggest exporters of illicit flows over the decade are the following.

1. China: $139.23 billion average ($1.39 trillion cumulative).

2. Russia: $104.98 billion average ($1.05 trillion cumulative).

3. Mexico: $52.84 billion average ($528.44 billion cumulative).

4. India: $51.03 billion average ($510.29 billion cumulative).

5. Malaysia: $41.85 billion average ($418.54 billion cumulative).

6. Brazil: $22.67 billion average ($226.67 billion cumulative).

7. South Africa: $20.92 billion average ($209.22 billion cumulative).

8. Thailand: $19.18 billion average ($191.77 billion cumulative).

9. Indonesia: $18.07 billion average ($180.71 billion cumulative).

10. Nigeria: $17.80 billion average ($178.04 billion cumulative).

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.

"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 long-time 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."

Additional findings

Illicit financial flows averaged a staggering 4.0 per cent of the developing world's gross domestic product.

Sub-Saharan Africa suffered the largest illicit financial outflows - averaging 6.1 per cent of GDP - followed by developing Europe (5.9 per cent), Asia (3.8 per cent), the Western Hemisphere (3.6 per cent), and the Middle East, North Africa, Afghanistan and Pakistan (MENA+AP, 2.3 per cent).

 In seven of the 10 years studied, global illicit financial flows (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 per cent in Asia and 7 per cent in developing Europe as well as in the MENA and Asia-Pacific regions.

Major implications

Goal 16.4 of the Sustainable Development Goals (SDGs) calls on countries to reduce IFFs significantly by 2030. However, the international community has not yet agreed on goal indicators, the technical measurements to provide baselines and track progress made on underlying targets and, subsequently, the overall SDGs.

These indicators will not be finalised until March. The report calls on the International Monetary Fund to conduct this annual assessment.

Policy recommendations

The report recommends that world leaders focus on curbing opacity in the global financial system, which facilitates these outflows. Specifically, GFI maintains that:

 Governments should 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 anti-money-laundering recommendations; laws already in place should be strongly enforced.

 Policymakers should require multinational companies publicly to 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 Organisation for Economic Cooperation and Development and the Group of 20.

 Customs agencies should treat trade transactions involving a tax haven with the highest level of scrutiny.

 Governments should significantly boost their customs enforcement by equipping and training officers to detect intentional mis-invoicing of trade transactions better, particularly through access to real-time world market pricing information at a detailed commodity level.

 Governments should sign on to the Addis Tax Initiative to support efforts to curb IFFs as a key component of the development agenda.

Source: http://www.nationmultimedia.com/business/Thailand-ranked-eighth-in-illicit-financial-outflo-30274678.html


-- The Nation 2015-12-11

[jaltsc]

"Governments should significantly boost their customs enforcement by equipping and training officers to detect intentional mis-invoicing of trade transactions better, particularly through access to real-time world market pricing information at a detailed commodity level."

Thailand already equips and trains officers to detect all that stuff. However it's.for the purpose of pay offs. Thailand so wants to be like its big brother... #1...China.

[Rocceao]

They only made 8th Bloody amatures

[NongKhaiKid]

Now then, just who in LoS has enough money to make sure it's safely parked overseas ?

Apart from many of the obvious answers those involved are rich, elite Thais who bristle at the thought of foreigners getting too much leeway here yet happily take advantage of the freedom offered by other countries, to bank and buy etc.

Our own idiot home countries are so wrapped up in ' freedoms ' etc that they just never consider reciprocal actions.

[worgeordie]

I would think the transfers of an Ex PM,before the Government decides

to claw back some of the money that was frittered away,helped Thailand

move up the rankings, how does this happen when if you want to send

some of your legally earned monies back to your home country,you

find restrictions.

regards Worgeordie

[geriatrickid]

Yes we all know some countries are rife with corruption. However, the most important facts were not provided;

- Which countries are associated with the laundering and parking of money?

- Which financial institutions are the vehicles used?

My understanding is that Gulf banks (hello Qatar) are used along with merchant banks in illegal laundering havens such as Luxembourg, Monaco and various Caribbean countries. Canada, the UK, France, Switzerland, Singapore and Sweden have all been named in scandals related to inappropriate financial transactions.

It's time to name the financial institutions and the bankers/brokers who are facilitating these transactions.

[Laughing Gravy]

Finally ranked in the top 10 for something. It nearly warrants to be called a hub.

[arrowsdawdle]

Now then, just who in LoS has enough money to make sure it's safely parked overseas ?

Apart from many of the obvious answers those involved are rich, elite Thais who bristle at the thought of foreigners getting too much leeway here yet happily take advantage of the freedom offered by other countries, to bank and buy etc.

Our own idiot home countries are so wrapped up in ' freedoms ' etc that they just never consider reciprocal actions.

A year from now let's revisit this and see if there is any change at home.

[arrowsdawdle]

Yes we all know some countries are rife with corruption. However, the most important facts were not provided;

- Which countries are associated with the laundering and parking of money?

- Which financial institutions are the vehicles used?

My understanding is that Gulf banks (hello Qatar) are used along with merchant banks in illegal laundering havens such as Luxembourg, Monaco and various Caribbean countries. Canada, the UK, France, Switzerland, Singapore and Sweden have all been named in scandals related to inappropriate financial transactions.

It's time to name the financial institutions and the bankers/brokers who are facilitating these transactions.

It is past time for this.

[nong38]

Finally ranked in the top 10 for something. It nearly warrants to be called a hub.

Perhaps we could start with a triangular hub and see hwo it goes.

[Srikcir]

"Governments should significantly boost their customs enforcement by equipping and training officers to detect intentional mis-invoicing of trade transactions better, particularly through access to real-time world market pricing information at a detailed commodity level."

Thailand already equips and trains officers to detect all that stuff. However it's.for the purpose of pay offs. Thailand so wants to be like its big brother... #1...China.

And its little brother Russia #2

[Christie Paul]

Illicit outflows?

An interesting term, because doubtless it goes beyond the laundering of the proceeds of criminal activity.

What of capital that seeks safe haven from thieving authorities?

[zaphod reborn]

Most of the funds are flowing out to Cambodia through the reds/police and spent in casinos.

[keskeseksa]

How about a list of the 10 illicit financial inflows?

[gandalf12]

It is a sad state of affairs when Nigeria is better than Thailand. Nothing more can you say.

[trainman34014]

Banks in all countries are nothing but legalised criminal institutions and until Governments do something about it nothing will change. But of course;....they don't want things changed.

[IMA_FARANG]

Oh isn't that surprising......NOT!

I never would have guessed that about the Land of Smiles.

[sawadee1947]

Hahahaha, doesn't surprise me

[IMA_FARANG]

Yes we all know some countries are rife with corruption. However, the most important facts were not provided;

- Which countries are associated with the laundering and parking of money?

- Which financial institutions are the vehicles used?

My understanding is that Gulf banks (hello Qatar) are used along with merchant banks in illegal laundering havens such as Luxembourg, Monaco and various Caribbean countries. Canada, the UK, France, Switzerland, Singapore and Sweden have all been named in scandals related to inappropriate financial transactions.

It's time to name the financial institutions and the bankers/brokers who are facilitating these transactions.

-----------------------------

Singapore

Perhaps just a coincidence.....but I've been watching he Thai Baht/ U.S. Dollar exchange rate for the last week or so.

During the night...when the Thai banks are closed the Thai Baht has weakened to over 36 to a dollar....but in the a.m. when Singapore financial institutions open the Baht strengthens back to 35.85 to a Dollar within half an hour of Singapore's opening.

Just a coincidence, I am sure?

[kingalfred]

8th out of all the countries in the world? Pretty damning

[NCC1701A]

congratulations! keep up the good work Thailand.

[kkerry]

Finally ranked in the top 10 for something. It nearly warrants to be called a hub.

If you look at the top ten ranked per capita, Thailand jumps to number four

Only Malaysia (a stunning performance), Russia and Mexico are above Thailand who rank similar to South Africa

[churtz]

How do they know whether the outflow is illicit or not?

[Ulic]

I see those Nigerian princes need a little more help getting there inheritance out of the country.

People say more attention to the business opportunities they receive by e-mail.

[DavisH]

Now then, just who in LoS has enough money to make sure it's safely parked overseas ?

Apart from many of the obvious answers those involved are rich, elite Thais who bristle at the thought of foreigners getting too much leeway here yet happily take advantage of the freedom offered by other countries, to bank and buy etc.

Our own idiot home countries are so wrapped up in ' freedoms ' etc that they just never consider reciprocal actions.

Yep...go to any Australian house auction....and what do you see? Rich, mostly Chinese...

[Caveat Emptor]

The PM, his cronies and others with the readies really should move more out so LoS can jump up the rankings, face is very important.

[facthailand]

The US, of course, must be on this list, with all its corporations and billionaires parking their money offshore to avoid taxes.

Maybe the UK and other Euro countries, too. Wonder how they kept themselves off?

[elgordo38]

They are doing a Pearl Harbor for capital controls. This is a shot over the bow of the big money movers. Its the same as in Thailand the government throws out hints on various projects to gauge public reaction then bang like the sub deal its a done deal. I am sure you are aware that all countries are hinting at capital controls and doing away with paper money, ecurrency, cashless societies, 10,000 maximum cash when entering another country, what is your location on the planet. Banks now report large wire transfers of money to the tax office and also the frequency and a whole range of other "controls" that I am more than likely unaware of. Your sheeple people. Get ready to be shorn to pay for political mistakes. Get ready for a monetary massage.

[siliconvalley]

Wow.....

Living in NY I can understand.

Thailand is now experiencing a FULL COURT PRESS. from every western country in crippling our economy.

For the last 5 months building blocks of destablization has been at work.

The U.S. government is not hapoy with Thailand. We call it Old School.

The US is priming the pump.

Why you ask?

The future. Geostategic.

The future rulers who controls Thailand. Russians.....Chinese.... Farangs....

I put my money on the north

[Sydebolle]

.......... while the United States continues to bash on - Switzerland and its bank secrecy laws; albeit the state of Delaware still operates numbered accounts where the identity of the account holder remains unknown to the bank