Kenya awaits anti-illicit financial flow tracker

Friday, May 26th, 2023 04:50 | By
Money. PHOTO/File
Money. PHOTO/File

Kenya is among African countries awaiting an audit report of anti-illicit financial flows policy tracker, following the conclusion of a three-day sitting in Johannesburg to evaluate the tools.

Launched in 2020 by the Tax Justice Network Africa (TJNA), the Illicit Financial Flows Vulnerability Tracker measures and visualises a country’s vulnerability to various forms of illicit financial flows, over different periods of time.

“It draws upon the recommendations of various reports that have extensively documented procedures required to combat IFFs, including the High-Level Panel on Illicit Financial Flows from Africa (commonly known as the Mbeki Panel report) and recent reports like the High-Level Panel on International Financial Accountability and Transparency (FACTI Panel),” reads a statement from TJNA.

The tool’s review outcome slated for June this year, is expected to identify money flows in and out of the country, most of which is believed to be illegal.

Illicit financial flows refer to money that is illegally earned, transferred or used, typically to evade taxes or other regulations – a common practice by rogue business individuals, some politicians and senior public officers with higher connections in the government.

Public finance governance

The vice has the potential to hurt economies, societies, public finances and governance of countries if left unchecked over a long period of time.

Countries like Dubai and Mauritius among others have acted as magnet destinations for tainted money for most moneyed Kenyans – with their property markets built to attract foreign buyers, with the Dubai emirate for instance, dominated by towers of upscale flats and man-made islands studded with luxury villas.

The tax network said a key challenge to tackling illicit financial flows is the difficulty countries face in identifying which financial flows carry the largest risk to their economies.

Such monies would typically include activities such as tax evasion, corruption, trade mispricing, and money laundering.

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