Illicit Financial Flows (IFFs)

The importance of the reduction of illicit financial flows (IFFs) as a priority area to build peaceful societies around the world has been recognized in the 2030 Agenda for Sustainable Development. The Sustainable Development Goal (SDG) target 16.4. calls for “[b]y 2030, significantly reduce illicit financial flows and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organised crime”. Progress towards SDG target 16.4 is measured by indicator 16.4.1. “Total value of inward and outward IFFs in current United States dollars”.

As custodian agencies of SDG Indicator 16.4.1, UNODC and UNCTAD developed jointly a statistical measurement framework and methodologies to estimate illicit financial flows (IFFs). Since 2017 the two co-custodians Agencies have taken a series of coordinated actions that led to the development of a Conceptual framework for the Statistical Measurement of Illicit Financial Flows and the development of methodological guidelines to measure IFFs from selected illegal market activities.

In parallel, UNODC leads technical assistance projects to test methodological guidelines and measure illicit financial flows in selected countries of Latin America and Asia-Pacific, and conducts regional studies on illicit financial flows dedicated to specific illegal activities.

Regional studies include:

Study on value chains and illicit financial flows from trafficking in ivory and rhino horn
Regional study on IFF from drug trafficking along the northern route
Regional study on IFF from smuggling of migrants/trafficking in persons from selected countries under Glo.Act

Methodological development

Key activities and achievements:

March 2022: Conceptual Framework for the Statistical Measurement of IFFs endorsed by the UN Statistical Commission
October 2020: Launch of the Conceptual Framework for the Statistical Measurement of Illicit Financial Flows
October 2019: Reclassification of SDG Indicator 16.4.1 from Tier III to Tier II
January 2018: Establishment of the UNCTAD-UNODC Task Force on the statistical measurement of illicit financial flows

TECHNICAL ASSISTANCE AND CAPACITY BUILDING

Asia-Pacific Project
Project duration: July 2020 - December 2022
Project partners: UNODC, UNCTAD, ESCAP
Pilot countries: Viet Nam, Bangladesh, Maldives, Nepal, Kyrgyzstan, Uzbekistan
Project funding: UNDESA

Latin-America project
Project duration: July 2017 - December 2020
Project partners: UNODC, UNCTAD, UNODC-INEGI CoE
Pilot countries: Mexico, Peru, Colombia, Ecuador
Project funding: UNDESA

Capacity building in African countries
UNODC external support on:

UNCTAD Project: UN Joint SDG Fund Support to Egypt Integrated SDGs Financing
UNCTAD-ECA DA project: Defining, estimating and disseminating statistics on illicit financial flows in Africa

Studies and reports

Conceptual framework for the Statistical Measurement of Illicit Financial Flows - English, French, Russian, Spanish

Supply and value chains and illicit financial flows from the trade in ivory and rhinoceros horns
- English

Illicit financial flows from trafficking of opiates along the northern route
- English

Awareness videos

Define, Estimate, Disseminate Statistics on Illicit Financial Flows in Africa

1. A Conceptual Framework for Statistical Measurement of Illicit Financial Flows - Introduction

2. Types of Illicit Financial Flows

3. Tax and Commercial Illicit Financial Flows

4. Illicit Financial Flows: Illegal Markets

5. Illicit Financial Flows: Corruption

6. Illicit Financial Flows: Exploitation-Type Activities and Financing of Crime and Terrorism

7. Illicit Financial Flows: The Impact of the COVID-19 Pandemic

8. International Cooperation

All events

16 February 2023 - 54th United Nations Statistical Commission side event "Measuring Illicit Financial Flows: Global experiences"
7-8 December 2022 - Final workshop of the project “Statistics and Data for Measuring Illicit Financial Flows in the Asia-Pacific Region” Venue: United Nations Conference Centre, Bangkok, Thailand
06 June 2022 - Training to Maldives Police Service on Measuring Illicit Financial Flows Associated with Drug Trafficking in the Maldives Venue: Maldives Police Service, Male (capital city of Maldives)
6 April 2022 - First National Workshop for Measuring Illicit Financial Flows associated with wildlife trafficking in Viet Nam
21-22 March 2022 - First National Workshop for Measuring Illicit Financial Flows associated with drug trafficking and trafficking in persons in Nepal Venue: Radisson Hotel Kathmandu
7 March 2022 - Third National Workshop on Measuring Illicit Financial Flows Associated with Drug Trafficking in Bangladesh Venue: Pan Pacific Sonargaon, Dhaka
21 and 24 February 2022 - First National Training for Measuring Illicit Financial Flows associated with drug trafficking and trafficking in persons in the Maldives Venue: online meeting
1 September 2021 - Kick-off meeting of pilot activities for measuring illicit financial flows in Egypt Venue: online meeting
16-17 June 2021 - Regional Kick-off Workshop of pilot activities for measuring illicit financial flows (IFFs) in Africa Venue: online meeting
26 May 2021 - Kick-off meeting of pilot activities for measuring illicit financial flows in Asia-Pacific countries Venue: online meeting
25 March 2021 - Measuring Illicit Financial Flows from illegal markets - Presentation of results from pilot studies in four countries of Latin America Venue: online meeting
16 October 2020 -10th UNTOC-COP Side Event - Illicit Financial Flows from Illegal Activities: first estimates from Latin America.
Presentations (pdf):
• Conceptual framework for the statistical measurement of Illicit Financial Flows
• Measuring Illicit Financial Flows - The Economic Elements
• Preliminary results of the pilot to measure Illicit Financial Flows in Latin America
22 September 2020 - Asia-Pacific Stats Cafe series: Estimating the size of illicit financial flows: Strengthening national capacity to monitor SDG target 16.4 Venue: online webinar
6-7 November 2019 - Second Regional Technical Meeting on the Measurement of Illicit Financial Flows (IFFs) Venue: Mexico City, Mexico
16-17 July 2019 - Task Force meeting on statistical methodologies for measuring illicit financial flows Venue: Geneva, Switzerland
20-22 November 2018 - First Regional Technical Meeting on the Measurement of Illicit Financial Flows (IFFs) Venue: Mexico City, Mexico
20-22 June 2018 - Second Expert Meeting on Statistical Methodologies for Measuring Illicit Financial Flows Venue: Geneva, Switzerland
12-14 December 2017 - UNODC-UNCTAD Expert Consultation on the SDG Indicator on Illicit Financial Flows (IFF) Venue: Vienna, Austria