Good governance in a digital and open trading environment

Minimize risks of illicit financial flows in Africa

This project focused on how African countries can minimize the risks of Illicit Financial Flows (IFFs) while maximizing the benefits of new digital technologies, new opportunities for inter-African trade are emerging through the African Continental Free Trade Area Agreement (AfCFTA) and Africa’s young, digitally savvy population and rapidly expanding digital infrastructure.

Specifically, the project’s objectives were to:

1. Harness new technologies to combat Illicit Financial Flows (IFFs): Transform regulatory frameworks and institutional cooperation to effectively identify and counter IFFs, while fostering consistent and harmonized digital innovation across Africa.

2. Minimize IFF risks within the AfCFTA framework: Harmonize regulations and administrative practices across participating countries to address the risks of increased IFFs arising from the African Continental Free Trade Area Agreement.

3. Enhance the role of CSOs in combating IFFs: Strengthen the capacity of civil society organizations to contribute to national and regional efforts, identify new policy solutions, and effectively operate in a digital and open trade environment.

Achieving this transformation requires the active participation of civil society organizations (CSOs). The project also engaged with Financial Intelligence Units (FIUs), Tax and Customs Departments, Trade Ministries, Anti-Corruption Authorities, Justice and Finance Ministries, and other relevant institution to promote better cooperation and information exchange.

The project focused on the following activities:

• Exploring how digital technologies can improve the response of law enforcement bodies;
• Ensuring the interests of enforcement bodies are addressed as the African Trade Agreement is implemented;
• Engaging CSOs in the debate and ensuring their active involvement.