Interesting that a report out of Washington DC shows our two “enemies” Russia and China as the biggest culprits, with the US being as pure as freshly fallen snow. And so it goes.
Over $7.8 trillion of illicit money has flowed out of developing countries in last decade
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
Every year, roughly $1 trillion flows illegally out of developing and emerging economies due to crime, corruption, and tax evasion. This amount is more than these countries receive in foreign direct investment and foreign aid combined.
This week, a new report was released that highlights the latest data available on this “hot” money. Assembled by Global Financial Integrity, a research and advisory organization based in Washington, DC, the report details illicit financial flows of money from developing countries using the latest information available, which is up until the end of 2013.
The cumulative amount of this “hot money” coming out of developing countries totaled just over $7.8 trillion between 2004 and 2013. On an annual basis, it breached the $1 trillion mark each of the last three years of data available, which is good for a growth rate of 6.5% rate annually.
In Asia, illicit financial outflows are growing even quicker at an 8.6% clip. It’s also on the continent that five of the ten largest source economies for these flows can be found, including the largest offender, which is Mainland China.
How does this “hot” money leave these countries? Global Financial Integrity has calculated that 83% of illicit financial flows are due to what it calls “trade misinvoicing”.
It’s defined as the following:
The misinvoicing of trade is accomplished by misstating the value or volume of an export or import on a customs invoice. Trade misinvoicing is a form of trade-based money laundering made possible by the fact that trading partners write their own trade documents, or arrange to have the documents prepared in a third country (typically a tax haven), a method known as re-invoicing. Fraudulent manipulation of the price, quantity, or quality of a good or service on an invoice allows criminals, corrupt government officials, and commercial tax evaders to shift vast amounts of money across international borders quickly, easily, and nearly always undetected.
Trade misinvoicing accounted for an average of $654.7 billion per year of lost trade in developing markets over the data set covered by the report.
Via Mauldin Economics, ‘Thoughts from the Frontline’, a piece titled George Friedman’s World of Geopolitics, where Friedman posited: “Russia is engaging in more and more aggressive behavior and simultaneously suffering an economic crisis.”
I replied: Whoa….I would have stated “The U.S. is engaging in more and more aggressive behavior”. Unless one is in a coma, it is the U.S. that is and has fomented most of the world’s humanitarian disasters in the last three decades and the policy of ‘regime change’ has accomplished death and destruction, nothing else.
Seems like Friedman is in line with “… the US being as pure as freshly fallen snow.”
Who sold billions in worthless paper to Germany and refuses to prosecute or extradite any Banksters? Who was storing Germany’s gold and now won’t (can’t) give it back? Who printed most of the Hot money in the first place? I heard Hillary took a lot of Hot money from China and promised they could buy American farmland. What Superpower is funding and supplying ISIS? The USA is probably the biggest vaccine and GMO criminal in the world. Who says he can drone anybody, anywhere, anytime, for anything he decides? Who probably was involved in the MH-17 and SU-24 shoot-downs? and the chemical attack in Syria? Who was behind Fast and Furious to create a False Flag to outlaw the 2nd Amendment? Who is flooding the USA with illegals and Muslim Terrorist? Who uses the NSA, IRS, DoJ etc to harass Conservatives but has all of his records sealed? The Really Bad Guy pointing the finger at everybody else.
This piece is of limited to NO value. Where is the 1.5 trillion of anual drug sales, Columbia, Afganistan, don’t even make the map. Hows that?
Where is all that money GOING?
“Interesting that a report out of Washington DC shows our two “enemies” Russia and China as the biggest culprits, with the US being as pure as freshly fallen snow”
here’s why – the map is about the”developing world,” not the developed world.