PHOTO: ISTOCK / GYRO
Privacy vs Transparency
Countries must strike the right balance as they combat illicitfinancialflows
Jay Purcell and Ivana Rossi
In 2011, Pakistan’s finance minister gave a budget speech to the National Assembly, explaining that the country’s ratio of tax revenue to GDP, at 9.2 percent, was ranked lower than that of all but 1 of 154 jurisdictions. In a country of 180 million, just 1.2 million people and firms fled income tax returns.
Widespread tax evasion started at the top; 70 percent of Pakistani lawmakers had not
The trade in precious metals and stones has been linked to illicit financial flows, corruption, smuggling, drug trafficking, illicit arms trafficking, and the financing of terrorism. In addition, the extraction of precious minerals and the subsequent trade in these resources, if properly managed, present significant revenue opportunities, particularly for countries facing development needs. Building on staff expertise in anti-money laundering and combating the financing of terrorism (AML/CFT) and technical support and analytical advice on the management of natural resources, this note is a reference guide to aid countries in using the AML/CFT framework to help combat crime related to and affecting the precious minerals sector while raising revenue.