Saudi Arabia Ranks 6th on List of ’Dirty Money’ Exporters
Local Editor
Over $30 billion in illicit funds flowed out of Saudi Arabia in 2012, a recent study revealed, making the oil-rich kingdom among the worst hit countries in the world.
A record $991 billion in unrecorded funds left 151 developing and emerging economies in 2012, up nearly 5 percent from a year earlier, according to US-based watchdog Global Financial Integrity [GFI] that exposes financial corruption.
With an estimated $30 billion, Saudi Arabia ranked sixth, behind China, Russia, Mexico, India and Malaysia, on the list of countries that saw the largest outflow of dirty money - the proceeds from shady business, crime and corruption - over the decade and also in 2012.
GFI's sixth annual report found between 2003 and 2012, the estimated amount of illicit funds shifted from developing countries totaled $6.6 trillion and rose at an inflation-adjusted 9.4 percent a year - roughly double global GDP growth.
Sub-Saharan Africa suffered the biggest loss as a share of its economy, with the disappearance of dirty money averaging 5.5 percent of GDP. Nigeria and South Africa were among the top 12 nations with the largest volumes of illicit outflows.
GFI President Raymond Baker said the estimated losses were conservative but were still more than 10 times the total amount of foreign aid these countries received. He called the growth rate "alarming", having surged from about $297 billion in 2003.
"Illicit financial flows are the most damaging economic problem plaguing the world's developing and emerging economies," Baker said in a statement.
Asia was the region of the developing world with the greatest flow of dirty money over the decade, accounting for 40.3 percent of the world total, driven by China.
But the researchers found growth of illicit flows was faster in other parts of the world, particularly in the Middle East and North Africa and in sub-Saharan Africa, where the growth was seen at 24.2 percent and 13.2 percent respectively.
The GFI research found fraudulent mis-invoicing of trade transactions was the most popular method to move money illegally and accounted for nearly 78 percent of illicit flows in 2012.
The GFI research tracks illegal money flowing out of 151 developing countries using trade and balance of payments reports filed with the International Monetary Fund. Its data provides an estimate as illicit flows cannot be precisely measured.
One of the report's authors, GFI's Joseph Spanjers, said the trillion dollars lost from these economies in 2012 could have been INVESTED in local businesses, healthcare, education or infrastructure.
"This is a trillion dollars that could have contributed to inclusive economic growth, legitimate private-sector job creation, and sound public budgets," he said.
Source: News Agencies, Edited by website team
Comments
- Related News
