Economic and Financial Crime

The Challenge

Illicit financial flows (IFFs) derive from activities considered as criminal offences, but also some behaviors related to tax and commercial practices. The proceeds of crime are the main motivation for criminal groups. Transnational organized crime generates hundreds of billions of dollars annually, less than 1% of which is confiscated globally while the rest is integrated into the financial system or businesses and used for purposes that perpetuate governance problems, instability, and conflict. Organized crime and IFFs erode sustainable development outcomes and undermine the rule of law.

The international community recognized the challenges posed by the complexity of IFFs and the importance of their reduction as a priority area to build peaceful societies around the world. The 2030 Sustainable Development Goal (SDG) target 16.4. calls for "significantly reduce illicit financial flows and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organized crime". The tracing, seizure, and confiscation of these revenues is necessary to disrupt and prevent their activities.

As mentioned by Ms. Ghada Fathi Waly, Executive Director of the United Nations Office on Drugs and Crime (UNODC), during a side event for COP10 on illicit financial flows, "illicit financial flows are draining away vital revenues from Africa, undermining stability and hindering progress towards the sustainable development goals".

get connected

As custodian agencies of SDG Indicator 16.4, UNODC, through its Global Programme against Money Laundering, Proceeds of Crime and the financing of Terrorism (GPML), counters the threat posed by IFFs by helping Member States to implement the Global Goals. GPML supports Member States to strengthen existing anti-money laundering and counter-terrorist financing (AML/CFT) systems, and assists them to detect, seize and confiscate illicit proceeds, as required under UN and other international standards. This is achieved through the development of AML/ CFT policy, providing in-depth training to national administrations and private sector actors dealing with AML/CFT issues, and by developing and sharing AML/CFT information resources, databases and good practices. Specific initiatives are developed around institution building and technical assistance delivery at national and regional level.

GPML activities focus on the overarching issue of IFFs and have a direct impact on technical assistance in a variety of areas including anti-corruption, anti-money laundering, counterterrorism and countering organized crime (including environmental crime, trafficking in persons, drug trafficking, illicit arms trafficking, etc.), and increasing financial transparency and better protecting the economy from the IFFs.

UNODC remains an essential partner for many States in tracking down illicit financial flows around the world and has been providing technical training to Member States for over two decades, bolstering their capacity to disrupt criminal networks involved.

United Nations

UNODC West and Central Africa

get connected

WHAT WE DO

Goals we are supporting through this initiative

INVESTMENT AREAS