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    International cooperation International initiatives to combat illicit financial flows

    Illicit financial flows have risen continually as a result of the increasing globalisation of the financial markets. To counteract this, the international community has been developing standards and instruments for limiting IFFs since 1990.

    Goal 16 of the 2030 Agenda for Sustainable Development focuses on peace, justice and effective institutions.

    Target 16.4 reads: “By 2030, significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organized crime.”

    In 2015, the United Nations adopted the Addis Ababa Action Agenda on financing sustainable development, which provides the framework for financing the 2030 Agenda.

    The Action Agenda represents a commitment by the international community to significantly reduce illicit financial flows and intensify efforts to combat tax evasion and corruption in particular by 2030.

    To strengthen regional and international collaboration for promoting the fast, effective recovery of stolen funds, various governments have come together to form regional Asset Recovery Inter-Agency Networks (ARINs).

    There are currently eight of these networks worldwide. Their goal is to provide joint support for the entire asset recovery process, from the launch of the investigation through to freezing and confiscating assets, all the way to the administration, collection and returning of funds.

    The United Nations Office on Drugs and Crime (UNODC) was formed in 1997 to support member states in combating illicit financial flows arising from the drug trade, corruption, organised crime and terrorism.

    Together with the UN Conference on Trade and Development (UNCTAD), UNODC published a conceptual framework for statistically measuring illicit financial flows in order to monitor progress on Target 16.4 of the 2030 Agenda.

    UNODC also hosts the secretariats of the Convention against Transnational Organized Crime (UNTOC) and the Convention against Corruption (UNCAC)

    The Egmont Group is a global body made up of national Financial Intelligence Units (FIUs), founded in 1995.

    It currently has 170 members, including the German Financial Intelligence Unit which is part of German customs. The Egmont Group provides its members with a secure platform for sharing confidential knowledge and financial information.

    The Financial Action Task Force (FATF) is the most important international body for setting standards to prevent and combat money laundering and the financing of terrorism.

    The FATF has 40 members and nine regional organisations called FATF-Style Regional Bodies (FSRBs). Over 200 countries belong to these FSRBs. The FATF and FSRBs support member states in implementing their standards and monitor compliance on a regular basis.

    The G7 and the G20 are closely engaged in tackling illicit financial flows. The G7 launched the Financial Action Task Force (FATF) in 1989. Since then, the G7 has issued calls to combat illicit financial flows and implement FATF standards in numerous communiqués.

    In 2014, the G20 adopted the Principles on Beneficial Ownership Transparency, which represent a key pillar in the effective fight against illicit financial flows.

    The UN Economic Commission for Africa (UNECA) launched the High Level Panel on Illicit Financial Flows from Africa in 2012. The panel was tasked with analysing the extent and the sources of illicit financial flows and developing recommendations for countermeasures.

    According to a 2015 report, African countries lose an average of 50 billion US dollars a year through illicit financial flows.

    The United Nations Convention against Transnational Organized Crime (UNTOC) was adopted in 2000 and came into force in 2003. It has been ratified by 193 countries (as at July 2025), Germany among them.

    The Convention includes optional protocols on human trafficking, migrant smuggling and firearms, and is the most comprehensive standard for the reduction of illicit financial flows to date. Among other stipulations, it obligates member states to take measures to combat money laundering.

    The United Nations Convention Against Corruption (UNCAC) was adopted in 2003. It has been ratified by 191 countries (as at July 2025), including Germany. The Convention is the first comprehensive global agreement on corruption prevention and asset recovery.

    Corruption is directly linked to illicit financial flows. Firstly, corruption is itself a source of illicit financial flows. Secondly, it can facilitate illicit transactions, for example in the case of employees at banks, supervisory authorities or investigative bodies being bribed.

    The Organisation for Economic Co-operation and Development (OECD) is a key international forum for tackling illicit financial flows.

    In 1997, the member states of the OECD signed the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. A forum launched in 2000 gives member states a platform for discussing tax issues specifically.

    As at: 06/08/2025