United Nations Calls for a Pact to Fight Financial Crimes

United Nations’ panel of experts has called on the governments around the world to take part in eliminating cross-border financial crimes and help the UN to restore billions lost in financial crimes resulting from the COVID-19 crisis. 

According to the report by International Financial Accountability, Transparency and Integrity for Achieving, 2.7% of the global GDP is laundered every year. The report says, Organizations seeking tax-free jurisdictions have cost more than US $600 million to the governments.

The UN panel of experts includes the central bank governors, academics, world leaders, and civil society. It has called upon governments from around the world to agree to a pact that will work towards promoting transparency in the financial sector.

The panel says, “Illicit financial flows represent a double theft: an expropriation of funds that also robs billions of a better future.”

It also highlights that the COVID-19 pandemic has hindered the countries to meet the UN’s agenda for Sustainable Development. These are set of goals that were set by the UN in 2015 which were to be achieved by 2030 for the betterment of the countries. 

Now the experts are asking the governments to develop a number of standardized policies. This policy will help to promote financial integrity. 

The UN report suggests that “Given the magnitude of illicit outflows, these resources if recovered or retained, have immense transformative potential.”

Further measures include enforcing transparent systems around the ownership of the companies and public spending. The international corporation requires strengthening to eliminate bribery and illicit financial activities while promoting transparency in tax. 

The panel members also highlight the loopholes that have enabled money laundering, corruption, and tax abuse and want the governments to close such loopholes and catch the bad actors involved in such wrongdoings.