$770 billion Worth of Black Money entered into India during 2005-2014: GFI

US-based think tank Global Financial Integrity (GFI) in its report titled ‘Illicit Financial Flows to and from Developing Countries: 2005-2014’, has estimated that $770 billion worth of black money entered India during 2005-2014. During the same time period, the think tank estimates the exit of $165 billion in illicit money out of the country. It translates into 3% of India’s total trade of $5500.744 billion between the time period 2005-2014. This is the first global study that has placed equal emphasis on illicit outflows and inflows. As per the report, in 2014 alone, $101 billion black money entered India while USD 23 billion exited.
The report has suggested that the governments should set up public registries of verified beneficial ownership information on all legal entities to check the menace of black money. It has also asked all the banks to check for the true beneficial owner of any account.

Global Financial Integrity (GFI)

GFI is a non-profit, Washington, DC-based research and advisory organization founded by Raymond Baker in 2006 with an aim to quantify and study the flow of illegal money. In 2008, it published its first groundbreaking economic analysis of illicit financial flows flowing out of developing world. It has estimated that $1 trillion flows out of developing and emerging economies every year due to crime, corruption and tax evasion. Apart from producing an analysis of illicit financial flows, it also advises the developing countries on effective policy solutions and promotes pragmatic transparency in the international financial system.

Month: Current Affairs - May, 2017