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Day3 sp3-2 georgetown-paneltomcardamone_en

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Day3 sp3-2 georgetown-paneltomcardamone_en

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Day3 sp3-2 georgetown-paneltomcardamone_en

  1. 1. 1 Public Financial Management, Illicit Financial Flows and Achieving the Sustainable Development Goals Prepared for ICGFM 2015 Winter Training Conference December 9, 2015
  2. 2. CHALLENGE / OPPORTUNITY • The UN estimates that achieving the SDGs will cost $2.5 trillion annually. • Current levels of ODA, FDI and pledged financial assistance from the MDBs totals $1.17 trillion annually. • At least $1 trillion in illicit capital is siphoned out of developing economies each year. • Helping countries capture revenue will be transformative. 2
  3. 3. POLITICAL WILL EXISTS • In the Addis Ababa Action Agenda and the Sustainable Development Goals nations agreed to “substantially reduce illicit financial flows” by 2030. • The Addis Ababa Action Agenda notes that “measures to combat. . . and curb illicit financial flows will be integral to our efforts.” • The Addis Tax Initiative notes that “stepping up Domestic Resource Mobilization is core to ensuring solid financing of the Post-2015 Development Agenda.” 3
  4. 4. CAPTURING DOMESTIC RESOURCES • Data show that of the $1.1 trillion in measurable illicit financial flows exiting developing economies in 2013, $878 billion were related to misinvoiced trade (i.e. trade fraud). • Customs departments need technology to help identify when goods are misinvoiced. • This is a customs department problem not a tax/revenue authority problem. 4
  5. 5. Trade Misinvoicing Outflows, 2004-2013 (in billions of U.S. dollars) $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Trade Misinvoicing from All Developing Countries
  6. 6. TRADE MISINVOICING ASSESSMENT SYSTEM (TMAS) • Real-time pricing information for 25,000 products. • Product pricing information from 30 nations. • Prices updated quarterly. • Ease of training – price inquiries take just seconds to complete. • Results provided instantaneously – won’t delay movement of goods. • Search results indicate when action should be taken – prior to goods leaving the port. 6
  7. 7. TMAS BENEFITS • Provides actionable information for customs officials • The technology will disrupt unhelpful behavior • Creates legitimacy in the trade process • Improves efficiency of customs departments • Addresses the compliance gap in revenue capture 7
  8. 8. CONTACT INFORMATION Tom Cardamone Managing Director tcardamone@gfintegrity.org +1 202 293 0740 8

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