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2 May 2017
The Edge Markets @theedgemarkets 8 minutes ago
EVENING 5: Billions in USD lost to illicit outflows in 2014: http://youtu.be/G9KAJ7ffu6M?a via @YouTube
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Malaysia lost billions in 2014, thanks to illegal money outflows, with the sum totalling up to US$430.6 bil, or RM1.9 tril from 2005 to 2014. Meanwhile, KWAP sells Sydney’s Exchange Centre for a cool AUD340 mil, and Felda will maintain a 19% stake in Iris Corp, even with the emergence of a new investor.
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malaysiakini.comVerified account @malaysiakini
GFI estimates Malaysia saw up to US$44.3b illicit outflow in 2014
An estimated six to 10 percent of Malaysia’s total trade in 2014 comprised illicit financial outflows, according to the 2005-2014 report of the Global Financial Integrity (GFI) on illicit financial flows to and from developing countries.
This translates to between US$26.6 billion and US$44.3 billion, based on the country’s total trade of US$443.2 billion in 2014.
GFI estimates illicit financial outflows by looking at legitimate trade being used to mask the transfer of funds abroad.
One commonly used method is through trade misinvoicing, which GFI estimates make up between US$22.2 billion and US$39.9 billion of Malaysia’s total illicit outflow in 2014.
According to GFI, trade misinvoicing is a method for moving money illicitly across borders by deliberately misreporting the value of a commercial transaction on the invoice submitted to the Customs Department.
The report, released in the United States yesterday, puts Malaysia’s total illicit outflow in the 10 years since 2005 at eight to 12 percent of the total trade, or US$287 billion to US$430.6 billion.
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The total global illicit outflow for 2014 is estimated at US$620 billion to US$970 billion.
Recording data on illicit inflows
GFI, in its latest edition of the report, has also began recording data on illicit inflows into a country.
It estimates that seven to 13 percent, or US$31 billion to US$57.6 billion of Malaysia’s total trade in 2014, comprised illicit inflow.
In the 10 years since 2005, the country’s illicit inflow comprised eight to 13 percent of the total trade, or US$287 billion to US$466.4 billion.
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GFI president Raymond Baker, in the report’s foreword, said illicit inflows often involved tax evasion.
“Illicit inflows frequently occur when imports are under-invoiced for the purpose of evading Customs duties and VAT (value added taxes) taxes.
https://www.malaysiakini.com/news/380936
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weehingthong 