1. Conference On Improving Domestic Resource Mobilization (DRM) and Stemming Illicit Financial Flows (IFFs) 12th-15th March 2019, Nairobi Kenya Presented by Justine Bagyenda ; on 14th March 2019

2. Discussion Points:
Illicit Financial Flows (IFFs) - Why Definitions Matter
Dangers of IFFs
National Risk Assessments (NRA)
National Co-operation
International Co-operation
Role of Churches in Stemming IFFs

3. Illicit Financial Flows -Why Definitions Matter
SOURCE: Pinning Down Illicit Financial Flows: Why Definitions Matter Center for Global Development Figure 1. Core concept of illicit financial flows.

4. Dangers of IFFS IFFs can; Drain foreign exchange Reserves
Lower tax receipts and reduce government revenues
Cut the capital available for private investment
Encourage criminal activity undermining the rule of law and political stability of a country

5. National Risk Assessments(NRA)
IFFs are difficult to measure given their illegality and the type of activities that underlie them. However, NRA would enhance a country’s collective understanding of the risks because it:
Focuses on all offences that generate illegal proceeds, including corruption, tax evasion, organized crime, environmental crime and helps countries understand the extent of their exposure to many of the activities that give rise to IFFs
Provides the application of appropriate control measures to mitigate the risks
Therefore formal co-operation of Domestic regulators through MOUs is key.
The World Bank has developed an advisory package to guide countries in conducting their NRA

6. National Co-operation
Domestic Regulators /Law Enforcement Agencies
Financial Intelligence Units
Revenue Collection Authorities
Anti- Corruption Courts
Criminal Intelligence Units
Public Prosecution Courts
Internal and External Intelligence Units
Financial Sector Regulators ( central bank, capital markets authority)

7. International Co-operation
The Financial Action Task Force (FATF) which sets the standards for international action against money laundering and terrorist financing
Global Forum on Transparency and Exchange of Information for Tax Purposes which works to establish clear standards for sharing of tax related information
Extractive Industry Transparency Initiative (EITI) which promotes open and accountable management of natural resources and the work of the World bank in many related areas
Regional groupings ( EAC, SADAC, ECOWAS etc)
Financial Regulators (Auditors, Accountants, Securities Exchanges)
Cross Boarder Monitoring and Supervision of financial transfers.
Both formal and informal information sharing is key in stemming IFFs

8. Role of the Churches in Stemming IFFs
Know your Customers (register for all parishioners)
Financial Literacy Programs
Financial Integrity (governance and corruption)
Churches must make sure that their tax and trade practices, if any, comply with local laws.
Establish ethics and compliance programs for parishioners
Play a role as advocates to increase transparency around revenues and expenditure (the power of the pulpit)

9. References
The IMF and the Fight Against Illicit Financial Flows:
Illicit Financial Flows (IFFs) :
Illicit Financial Flows :
Combating illicit financial flows worldwide:

10. Questions, Comments