Where does the money go?

Organisations like Global Financial Integrity work around the world to stop illicit financial flows. They try to make the global financial systems more transparent so they can follow money that is illegally gained. Illicit financial flows (IFFs) involve movements of money that might have been ‘earned’ by:

• Drugs

• Arms /weapons

• Human trafficking

• Tax avoidance 

• Avoiding customs or duties (eg ciggies in Sydney)

• Corrupt public officials – bribes

Places that are ‘tax havens’ are another focus of global groups trying to detect illicit flows of money. Such countries take privacy to extremes and allow for secret financial transactions and/or low or no tax. The appeal to criminals is obvious. 

Ironically, countries that are considered highly civil and which follow the rule of law can also be tax havens: think of Switzerland as an example. However, people who have been operating in countries where corruption is rife can hide money in Switzerland where it will be not only secret – but safe!