The African Development Bank (AfDB) is set to unveil its new three-year action plan to combat money laundering and illicit financial flows (2024-2026) in Africa on February 25.
This new action plan will provide a framework to help African countries establish stronger systems for detecting and preventing money laundering and illicit financial flows. It will emphasize the importance of collaboration between the Bank, regional member countries, and development partners in the fight against financial crime.
During this event, member countries, along with regional and international experts, will share their experiences in tackling money laundering and illicit financial flows. They will also discuss how this new action plan can not only strengthen these initiatives but also contribute to economic stability and sustainable development in Africa.
Research indicates that Africa’s losses due to illicit financial flows have nearly doubled, rising from $50 billion per year in 2015 to $90 billion in 2020. This represents 3.7% of the continent’s total economic output and is nearly equivalent to the sum of foreign investment and aid Africa receives annually, the institution stated on its website.
While money laundering and illicit financial flows affect all countries, their impact is particularly severe in African nations, especially those recovering from conflict or with limited resources. These activities weaken governments and threaten security, often financing prolonged conflicts and making revenue collection and resource generation more challenging for affected countries.