Leading to global security through financial regulation: Global Financial Integrity

Developing countries often fail to grow past the point where foreign aid is necessary. This puzzled economists until 2005 when Global Financial Integrity (GFI)’s founder demonstrated that illicit financial outflows—facilitated by secrecy in the global financial system—were bleeding developing countries dry. Roughly $1 trillion yearly flows illegally out of developing economies due to crime, corruption, and tax evasion—more than is received in foreign investment and aid combined. For every $1 poor nations receive in foreign aid, $10 in dirty money is sent abroad. Lack of controls on illicit outflows enables drug cartels, terrorist organizations and tax evaders to move money worldwide. Surprisingly, the US, the UK, and the Cayman Islands have been found to be the top destinations for offshore money. Hear GFI’s recommendations in the US and elsewhere to curtail those flows and promote financial transparency measures as a means to global development and security.