Independent Corrupt Practices and Other Related Offences Commission (ICPC) says administrative actions, legal reforms and technology interventions were needed to curb Illicit Financial Flows(IFFs) in the country.
ICPC Chairman, Prof. Bolaji Owasanoye, stated this at a webinar on Understanding Illicit Financial Flows for the Development of Innovative Ideas in curbing the menace, organised by the commission, in Abuja on Tuesday.
According to him, the country has no business borrowing money for development because it can generate a lot of money through its economy.
“As we know, many Africa countries are struggling to find capital for development.
Often times, the strength, size and potential of our economy is discussed but the benefits are never seen or realised for the good of the people because a substantial amount of the capital leaves our shores.
“They leave in different ways. One of the ways is described as Illicit Financial Flows(IFFs). IFFs can be referred to as money that is illegally transferred or illegally used.
“But sometimes, money that is legally earned is illegally transferred and it becomes dented, ” he said. He further explained that, “when companies do business and earn profit but decided to transfer it, claiming that the money was earned in some other jurisdiction it becomes a crime.
“They are denying the country where the business took place, the country that bears the consequences of environmental degradation and other challenges the chance for development.
“They leave the problem behind and take away the money that would have been used to solve the problem.”
Owasanoye, however, stated that a lot of administrative action, some legal reform and technology intervention were needed in order to check IFFs in the country.
Dr Adeyemi Dipeolu, the Special Assistant to the Vice President on Economic Matters, said that poor governance and weak regulatory structure gave room for legal loopholes.