- Aim: to curb the phenomenon of Illicit Financial Flows
- And dry up the channels of financing terrorism
- 50% of illicit flows originate from the extractive sector
- A workshop to set the scene
Illicit financial flows (IFFs) have a negative impact on the socio-economic development of developing countries. With a view to curbing this phenomenon, the Permanent Secretariat of the Extractive Industries Transparency Initiative in Burkina Faso (EITI-BF) initiated a workshop on Monday 20 March 2023 in Ouagadougou to measure Illicit Financial Flows in the international trade of mining products. Organised by the Permanent Secretariat of the Extractive Industries Transparency Initiative (SP-ITIE), the workshop is a component of the study initiated by the structure at the end of 2022 on illicit transactions in the mining sector in Burkina Faso. The aim was to highlight the main factors fuelling illicit financial flows, the channels used, the countries of destination and the measures to be considered to curb the phenomenon.
The workshop was chaired by the Minister Delegate to the Minister of Economy, Finance and Forecasting, in charge of the budget, Fatimata Bako/Traoré. He was joined by EITI-BF Permanent Secretary Kanfido Onadja.
The immediate impact in terms of illicit financial flows is a loss of revenue in terms of hospitals, schools and roads built. According to Fatimata Bako/Traore, Minister Delegate to the Minister of Economy, Finance and Forecasting, in charge of the budget: “50% of the illicit flows from Africa have as their source false invoicing in international trade and more than half of these illicit financial flows are linked to the extractive sector”.
According to the Permanent Secretary of EITI-BF Kanfido Onadja: “the study on illicit financial flows is very important for the country because it will allow us to know the different exchanges with other countries in the mining sector”. He continued that this study is important in the security context of Burkina Faso. For him, certain armed groups take advantage of the lack of monitoring of financial flows and use the extractive sector to supply themselves with arms and food. He concluded by saying that in the context of the fight against terrorism: “It is crucial to identify these illicit financial flows that benefit armed groups and to dry them up”.
As a reminder, this study was initiated at the end of 2022 and several activities have already been carried out in this framework with the technical support of the United Nations Conference on Trade and Development (UNCTAD). A technical working group composed of the different national stakeholders who have data or expertise on IFFs was set up to conduct the study.
Rachid Ouedraogo
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