African nations are undertaking proactive and strategic measures to combat money laundering (ML) and illicit financial flows (IFFs). Estimates from a 2015 High-Level Panel report indicate that Africa has lost an estimated $30 billion to $60 billion annually in IFFs, effectively making it a net creditor to the world23.
A significant proactive step is the adoption of the African Development Bank (AfDB)’s Action Plan for Anti-Money Laundering and Combatting Illicit Financial Flows (2024-2026). This plan outlines a vision for an African continent with the capacity to effectively combat IFFs by 2030.
The AfDB’s Action Plan focuses on five key intervention clusters, implementing diverse proactive measures:
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- Enhancing Tax Systems and Tax Administration Anti-IFFs Framework
- Strengthening Framework for Curbing ML and IFFs in the Natural Resources Sector
- Enhancing Framework for Curbing ML and IFFs in the Financial Sector and Designated Non-Financial Businesses and Professions (DNFBPs)
- Enhancing Capacity for ML and IFFs Knowledge Management and Mainstreaming
- Strengthening the Bank’s Internal Framework for Due Diligence and Controls
Read more here – https://www.afdb.org/en/documents/bank-group-action-plan-anti-money-laundering-and-combatting-illicit-financial-flows-2024-2026