Humphrey P B Moshi
"The paper has three main objectives. First it identifies the kind of institutional frameworks at the global, regional and country level which have evolved to address the issues of illicit financial flows. Second, it analyzes the factors that have inhibited the efficiency and effectiveness of the frameworks. Third it proposes a way forward in terms of addressing the challenges with a view to achieve enhanced progress as far as the war against illicit financial flows is concerned. The main findings are: First, a variety of institutional frameworks has emerged at the three levels. However, they are interlinked and feed into each other, in the sense that those at the country level have been driven by those at the global and regional level. Given that most of these frameworks are not organic to Africa, the continent’s position has thus been more reactive than proactive. Second, the establishment of the institutional frameworks is an outcome of lobbying and advocacy organizations, spearheaded by non-governmental organizations and civil society organizations. This has been complemented by publications undertaken by a number of researchers in a variety of academic and non-academic institutions. All these efforts have underpinned the establishment of policy, legislative and enforcement frameworks at the country level. Third, the level of awareness, across a broad range of stakeholders, of the scope of the problem and its negative impact on African development, has been heightened. This notwithstanding, illicit financial flows continue to flourish unabated. A number of factors have contributed to this state of affairs. They include weak political will, lack of comprehensive legislation, weak enforcement capacities, continued existence of secrecy havens, corruption, and weak human and institutional capacities. Fourth, in order to adequately address the problem of illicit financial flows, solutions to the constraining factors must be sought, and the attendant measures effectively implemented. However, and most importantly, Africa needs to be proactive and own the process. The establishment of the High Level Panel at the Economic Commission for Africa (ECA) is a good starting point for spearheading efforts to combat illicit financial flows."
"Money laundering has traditionally been associated solely with banks. Action to combat money laundering has therefore focussed on the banks, reflecting the historical emphasis on the laundering of street cash derived from the sale of drugs. While it may be true that banking processes such as deposit taking, money transfer systems and lending, etc., offer a vital laundering mechanism, criminals have responded to counter measures put in place by the banking sector. It must now be recognised that products and services offered by other types of financial and non-financial institutions are also attractive to the launderer."
Global Financial Crisis: An Opportunity to Revisit the Neo-Liberal Model of Socio-Economic Development
"The current global economic and financial crisis, provides for yet another opportunity to revisit the neoliberalism paradigm, which has been operational in Sub-Saharan Africa for almost three decades. The performance of this development framework, with its attendant policies and strategies, leaves much to be desired. The adopted policies and strategies are not only informed by a set of wrong assumptions, but are also coupled with loss of policy space and ownership of the development agenda. The ultimate effects being those of : modest economic growth rates, persistent poverty in SSA and low resilience to crises. These negative outcomes logically activate the “search engine” for alternative development pathways."
"The paper is organised as follows: The introduction is followed by an examination of the framework within which money laundering and terrorist financing should be analysed. The third section reviews both global and regional initiatives for addressing money laundering and terrorist financing. The fourth section focuses on the challenges Africa faces in tackling these twin problems by putting the emphasis on structural and capacity constraints. The last section concludes the analysis by suggesting ways for enhancing the continent’s capacity and progress in implementing AML/CFT measures."