The threat of trade-based money laundering To the African continental free trade area
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Date
2018
Authors
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Journal ISSN
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Publisher
University of the Western Cape
Abstract
Africa has dedicated considerable effort to establishing a Continental Free Trade
Area to facilitate intra-African trade and deepen economic integration. However,
the liberalisation and facilitation of trade on the continent would increase trade
openness significantly in the markets for goods and services, thereby expanding the
threat of trade-based money laundering (TBML) and undermining the potential
benefits the agreement would bring to economic growth, industrialisation and
sustainable development in Africa. This paper focuses on the threat of TBML to the
African Continental Free Trade Area (AfCFTA), typically perpetrated through trade
mis-invoicing as the main vehicle for illicit financial flows. It deduces that increases
in the volume of trade across the continent potentially increase the vulnerability of
the AfCFTA to TBML.
Several global and regional initiatives by such bodies as the Financial Action
Task Force, the Organisation for Economic Co-operation and Development, the
World Customs Organisation, the Economic Commission for Africa, the African
Union have attempted to curb diverse aspects of illicit financial flows. However, as
yet there is no coherent and multi-faceted framework to combat the problem.
Moreover, not all initiatives are universal or reflect the interests of the African
continent. Hitherto, the African response to TBML has been almost non-existent.
In order to combat the potential increase in TBML threats, this paper proposes a
uniform African anti-TBML mechanism as an African solution to an African problem.
Description
Keywords
Continental free trade area, Africa, Trade-based money laundering (TBML)
Citation
Iyanda,A.E . (2018). The threat of trade-based money laundering To the African continental free trade area. Journal of Anti-Corruption Law, 2(1). 141-162