Wednesday, December 19, 2012

‘India lost $ 123 bn in black money in 10 years’

BEIJING: India lost nearly $123 billion in black money between 2001 and 2010, making it the eighth largest victim of illegal financial outflow, a US based research and advocacy organization has said in a report.

China is listed as the leading source of global outflows of tainted money with India ranking eighth in the list compiled by a Washington-based think tank, Global Financial Integrity (GFI). Some 150 developing countries lost $5.9 trillion by way of illegal outflows in those 10 years, GFI said in a report, which showed that the financial crisis has not adversely affected the production and flow of corrupt money.

The report, co-authored by an economist of Indian origin, Dev Kar, said international outflows rose from $776 billion in 2009 amid the financial crisis to $859 billion in 2010. The all-time high of $871 billion was in 2008.

Malaysia with $64 billion in 2010 and $285 billion over the decade took the second position followed by Mexico, which lost $51 billion in 2010 and close to 10 times that amount, or $476 billion during the decade. China, in 2010 alone, saw a loss of $420 billion. The bulk of illegal money flows accounting for 61% came from Asia. It is followed by just over 15% from the Western hemisphere and just over 10% from West Asia-Gulf and North Africa.

Illegal money out of China was $420 billion in 2010 and exceeded $2.7 trillion for the decade ending in 2010, which was nearly half that period's total for all developing countries.GFI said the flows underscored a need for governments to adopt measures like increasing exchanges of tax information and boost money laundering laws among others.; reform laws allowing criminals to hide behind anonymous entities ; and require corporations to disclose sales, profits and taxes paid in foreign countries. 
 

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