22 April 2016: Following the release of the Panama Papers, Organization of Economic Co-operation for Development (OECD) Secretary-General Angel Gurría and Thabo Mbeki, Chair of the High Level Panel on Illicit Financial Flows (IFFs) from Africa, released a joint statement on the fight against IFFs. They highlight the “brake” that IFFs put on development and poverty reduction, and the importance of addressing them to enable African governments to mobilize their own resources for development.

The statement was released during the OECD’s 2016 Integrity Week, which took place from 18-22 April 2016, in Paris, France. Integrity Week is organized annually in partnership with the CleanGovBiz Initiative to support governments and organizations in strengthening integrity, build trust, and fight corruption.

In the statement, Gurría and Mbeki resolve to ensure that African countries can benefit fully from international efforts at improving tax transparency. They also: call on all African countries to join these efforts; acknowledge the role played by the Global Forum on Transparency and Exchange of Information and of the Base Erosion and Profit Shifting (BEPS) project in bringing about financial transparency in tax matters; and encourage all African countries to join almost 100 other jurisdictions in signing the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

Gurría stressed that, through Sustainable Development Goal (SDG) 16 on peaceful and inclusive societies, the international community has committed itself to: reducing illicit flows significantly by 2030; strengthening the recovery and return or stolen assets; combating all forms of organized crime; addressing corruption and bribery; and developing effective and accountable institutions. He noted that taking the next step on tax transparency requires: ensuring that all countries and jurisdictions commit to and implement the existing standards without further delay; improving the transparency around beneficial ownership, including a possible standard on automatic exchange of beneficial ownership information; and addressing the role of professional enablers, who facilitate tax evasion and other financial crimes.

Gurría spoke about several OECD initiatives designed to support African countries in fighting IFFs, including: working with the African Development Bank (AfDB) to develop a publication on Anti-Bribery Policy and Compliance Guidance for African companies; the Oslo Dialogue, which brings together senior officials from tax administrations, finance ministries, law enforcement, and other parts of government to fight financial crimes; and the BEPS project, which will hold its first meeting in June 2016. [Joint Statement] [OECD Integrity Week] [IISD RS Story on Offshore Flows]