Nigeria Current Affairs

Pakistan named among top 3 sources for money laundering in UK

United Kingdom’s National Crime Agency (NCA) in its report has listed Pakistan among top three sources for money laundering in the country. The other two countries are Nigeria and Russia. The NCA is non-ministerial UK government law enforcement agency.

Key Highlights of NCA report

UK is prime destination for foreign corrupt and politically exposed people (PEPs) to launder money. It has identified trade misinvoicing as one of the key mechanisms used for such operations. Investment in UK property, particularly in London, continues to be attractive mechanism to launder funds.

The true scale of PEPs’ investment in UK is not known, however source countries that are most commonly seen are Russia, Nigeria and Pakistan. Small number of UK-based professional enablers, such as accountants, solicitors, estate agents and trust and company service providers, assist such corrupt individuals in laundering their money.

The overseas jurisdictions that have most enduring impact on UK across majority of different money laundering threats are Russia, China, Hong Kong, Pakistan, and United Arab Emirates (UAE). Some of these jurisdictions have large financial sectors which also make them attractive as destinations or transit points for proceeds of crime.

There may be also increase in Brexit-related spike in corrupt activities between UK and countries outside European Union (EU). Due to this, UK businesses will come into contact with corrupt markets, particularly in developing world, raising risk they will be drawn into corrupt practices.

Trade misinvoicing

It is a form of trade-based money laundering.  It is deliberately misreporting value of commercial transaction on invoice submitted to customs officials. This practice is adopted by traders to transfer money illicitly to foreign countries or in other words to keep their money in foreign accounts. It is largest component of illicit financial outflows measured by Global Financial Integrity.

Month: Categories: International Current Affairs 2018


Fact Box: 52nd Annual General Meeting of African Development Bank (AfDB)

The 52nd Annual General Meeting of African Development Bank (AfDB) is being held at Gandhinagar in Gujarat from May 22-26, 2017. This is for the first time that this meeting is being held in India. This meeting is expected to be attended by some 4500 delegates including the finance ministers and central bank governors of AfDBs members and non-member countries.

About African Development Bank (AfDB)

African Development Bank Group (AfDB) also known as Banque Africaine de Developpment (BAD) was founded in 1964 with a mission to fight poverty and improve living conditions of the people of African continent by promoting investment in government and private capital in development projects. The bank is made of three entities viz. African Development Bank, African Development Fund, and Nigeria Trust Fund. Its headquarters are at Abidjan, Côte d’Ivoire (Ivory Coast). The motto of the bank is “Building today, a better Africa tomorrow” and currently, it has total 78 members including India. India had joined this bank in 1983. Its unit currency (for accounting purpose) is XUA under the ISO 4217 standard currency code.

India and other Non-African Members

India is a non-African member country for this bank. Some other non-African member countries include US, Japan, Germany, Canada, France, China etc. Nigeria is the largest country in terms of voting powers at the African Development Bank, followed by United States.

Significance of the meet

So far, the annual conferences of the bank have held within African continent only. For the first time in 2017, the bank is holding its first annual conference outside Africa at Gandhinagar. This event is to be inaugurated by Prime Minister Narendra Modi.  This meet is seen as a logical follow up to the India Africa Forum summit which was held in 2015 in Delhi.

Month: Categories: International Current Affairs 2018