Ghana loses $340m annually through illicit financial flows

The Integrated Social Development Centre (ISODEC) has revealed that, Ghana loses 340 dollars annually, due to Illicit Financial Flows (IFFs).

Illicit financial flows are illegal movements of money or capital from one country to another.

According to the Global Financial Integrity, illicit flows include when the funds are illegally earned, transferred, and/or utilized.

In Ghana’s case, the inability of revenue collection agencies to judiciously mobilize funds, has resulted in both local and foreign companies evading taxes.

Speaking to 3FM BUSINESS at a forum to discuss illicit financing and its effects on countries, coordinator of ISODEC, Dr. Steve Manteaw lamented that the nation is losing a lot due to this act.

“Ghana loses 340 million dollars annually and this is quiet substantial. We lose all these monies and we go about borrowing, when we can pluck the holes and get these monies out of illicit financial flows”, he stated.

ISODEC has advocated for strict monitoring of the revenue collection agencies as well as the country’s legislations, in order to apprehend the perpetrators.

“There are exploitation of leakages in our revenue generation agencies, and these leakages must be blocked. Our policies and laws must be reinforced to close the gaps, that way, we can make a lot”, he added.

The forum was dubbed combating illicit financial flows to foster sustainable development goals-taking stoke and strengthening responses.