Illicit financial flows
Financing the Sustainable Development Goals (SDGs) and poverty reduction continues to be recognized as one of the most significant challenges to achieving progress. Two major limitations have been observed when dealing with this challenge.
First, corruption and poor governance persist as major bottlenecks for the achievement of the SDGs due to the vast amount of resources lost through corrupt practices. It is now widely acknowledged that illicit financial flows (IFFs) represent a considerable drain on financial resources from developing countries. According to Global Financial Integrity (2021), developing countries lost an estimated US$1.6 trillion in illicit financial outflows in 2018 alone, primarily through trade misinvoicing, tax evasion, and corruption-related activities.









