$1.6 Trillion Was Lost In Illicit Funds In 2006

It is asserted that developing countries lost about US$858.6 billion - $1.6 trillion in illicit financial flows in year 2006, a situation that became necessary to fight the menace of money laundering towards promoting democracy, good governance, as well as international peace and security.

The Director General of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) Dr Abdullahi Shehu made the disclosure in a Keynote Address at a workshop held in Lokoja, Kogi State of Nigeria, Thursday for elected officials of Local Government administration, entitled ''Democracy, Good Governance and the Challenges of Development'' stressing the need to protect the international financial system from abuse.

Dr Shehu stated that the establishment of GIABA is part of the renewed efforts to develop strategies for the prevention of money laundering and its predicate offences and to assist member States to implement those strategies to protect their economies from misuse for the purposes of laundering the proceeds of crime, including the financing of terrorism.

''Terrorists and extremist organizations, drug cartels and the trafficking of human beings are seriously affecting human security in developing and developed economies alike. The 9/11 terrorist attacks in the USA have brought to the attention of the world the global reach of the extremist organizations and the frightening consequences of their actions concerning personal safety, peace and security in the world, potential tensions among different segments of the society, and pressures on the state institutions'' he added.

He identified colonization, discrimination, low level of education, and a large population among the causes of poverty, lamenting that negative structural factors, such as lack of government support, neglect of educational development, health care and poor economic infrastructure have also contributed strongly to the persistence of poverty.

To this end, the GIABA director general opined that democracy and good governance are key elements to end poverty in Africa geared towards improving the standard of living of the citizenry in the continent, a gesture he added can be achieve through responsive and participatory democracy, respects human rights, freedom of expression, rule of law, free and fair election, viable opposition and a free and independent press to ensure checks and balances is enshrined in the system to curb corruption and human rights abuses.