Global Financial Integrity Announces Launch of Campaign to Curb Flow of Illicit Funds Into the United States

One-Half Trillion Dollars In Illicit Funds Exit Developing World Annually,

Research Shows

An Estimated $250 Billion Lands In The United States

    WASHINGTON, June 28 /PRNewswire-USNewswire/ -- Global Financial
 Integrity (GFI) announced today that it will lead a nationwide campaign to
 make the knowing receipt of illicit money arriving from abroad an offense
 under U.S. law. An estimated $1 trillion, which are illegally earned,
 transferred or utilized, are spirited across borders annually. Of this,
 $500 billion exits developing economies and up to half that amount ends up
 in American banks or other dollar denominated accounts. "This outflow of
 capital from developing nations constitutes the most damaging economic
 condition hurting the poor today," said GFI Director Raymond Baker.
     Currently, it is legal for U.S. financial institutions to accept
 deposits of funds from abroad that were attained from alien smuggling,
 sexual exploitation of children, extortion and many other activities which,
 if they were committed in the U.S., would be felonies. The receipt of such
 funds by U.S. financial institutions encourages crime, undermines
 development efforts and damages global stability. "It is not enough to
 merely point an accusing finger at corrupt officials, tax evaders and
 criminals in the annual trillion- dollar illicit-money equation," Baker
 noted. "The recipient side of the equation must be highlighted as well."
     The campaign seeks statutory changes that will make the current list of
 "specified unlawful activities," which are crimes associated with domestic
 money laundering charges applicable to criminal activities that occur
 outside U.S. borders. If Congress makes such a change American financial
 institutions would be prohibited from accepting funds derived from those
 activities. "In order to foster honest government and reputable commerce in
 both developing nations and western countries, the whole of the illicit
 financial flow problem must be addressed, with the United States taking the
 lead," Baker said.
     Global Financial Integrity -- A resource for journalists: In addition
 to the campaign, GFI works to curtail illegal cross-border financial flows
 in order to positively impact development efforts worldwide. Program
 Director Raymond Baker, an internationally respected authority on
 corruption, money laundering and growth issues in developing and
 transitional economies and, Managing Director Tom Cardamone, a long-time
 policy advocate, are available to speak about money laundering, tax havens,
 illicit financial flows, capital flight, shell corporations, terrorist
 financing, transfer pricing, FinCEN, FATF and related issues. For more
 information see the GFI website: http://www.gfip.org.
     Global Financial Integrity -- Background: GFI was launched in September
 2006 as a logical extension of Raymond Baker's book titled Capitalism's
 Achilles Heel: Dirty Money and How to Renew the Free-Market System. Illicit
 capital flows undermine the goals of the World Bank and other lending
 institutions, strip developing nations of critical resources, and
 contribute to failed states. Despite massive amounts of foreign aid
 streaming into poor nations and transitional economies, many countries fail
 to develop to the point of no longer needing aid. Indeed, for every $1 poor
 nations receive in foreign aid, an estimated $10 in illicit money flows
 abroad.
 
 

SOURCE Global Financial Integrity