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Bringing Money Back
Estimate of illicit financial outflows and the demand to repatriate these are fraught with issues. First, there can be reversals in direction of flows of illicit money thereby making it tough to ascertain undeclared wealth held abroad. Second, even if the money is traced by the authorities of country, institutional impediments may prevent repatriation. Third, once such money is repatriated it may be more useful to employ these to set up trade transparency units.
Repatriation of illicit money is being suggested and discussed in the context of many countries. However, the estimates of stock of wealth held by residents in other countries must be approached with caution. Several issues remain enmeshed within such claims, thereby necessitating a better understanding of each. Any talk of repatriation, to begin with, must seek to address three main concerns. One, the tentative estimate of illicit flows is subject to reversal, that is, an outflow from a country may be followed by an inflow into that country. The reversals can in fact counter any efforts to repatriate. Trade mis-invoicing exists as one such means to move money in and out. The legal treatment of this transaction is imperative to the realisation of money. Two, repatriation is a bilateral process, if not a multilateral one. Therefore, non-cooperation by a party can sabotage such efforts. It is therefore essential to detail if there can be any slips in the process, given the existing institutional structure and legal framework. Lastly, many international organisations have made fiscal claims on such money. In this context, the article seeks to propose the utilisation of such recoveries.
Estimates of Flows
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