F.P. Report
ISLAMABAD: On Thursday Prime Minister Imran Khan emphasized to seek global commitment from the ‘haven’ countries to return all foreign stolen or illegitimate assets.
Addressing as a keynote speaker at the virtually held launching ceremony of the Final Report of the High-Level Panel on International Financial Accountability, Transparency and Integrity for Achieving the 2030 Development Agenda (FACTI Panel), the prime minister called for considering the OECD’s (Organisation for Economic Co-operation and Development) proposal to freeze and return the unexplained assets of foreign “Politically Exposed Persons”.
He also called international community to develop international anti-money laundering legal instruments. Prime Minister further added that, “The OECD’s proposal to freeze and return the unexplained assets of foreign ‘Politically Exposed Persons’ is worthy of consideration.”
Mentioning tax cooperation efforts, the prime minister urged the international community to begin negotiations on the new international tax cooperation and anti-money laundering legal instruments, like the Convention on Corruption.
While highlighting the FACTI Panel principles, Prime Minister added that the adoption of common principles identified by the FACTI Panel to apply to all financial transactions, and establishment of a UN coordination, adjudication and mediation mechanism on illicit financial flows also comprised the quick concrete actions proposed by the prime minister, who is now globally recognized for his efforts against corruption and money laundering for his decades long struggle to purge the country of the very evils.
During the address, Prime Minister Imran Khan pointed out that the that his government had inherited a country with empty treasury, denuded by huge and accumulated trade and fiscal deficits, but “more than that, by illicit financial outflows from our country”.
Highlighting the Interim Report, Prime Minister said that that FACTI’s Interim Report confirmed that due to political and official corruption, crime and tax evasion, trillions of dollars flow out of developing countries each year.
Referring to the high extent of corruption and its impacts, Prime Minister emphasized that the “Seven trillion dollars in stolen assets are parked in the financial ‘haven’ countries. The flight of these vast resources from the developing countries is a principal cause of their under-development, poverty, inequality and political instability”.
The prime minister recalled that during the consideration of the Interim Report in September last year, he had suggested several global policy actions, including immediate return of stolen assets, and penalties on the financial institutions, lawyers and accountants, and other “enablers” of corruption, crime and tax evasion.
Addressing the event, Prime Minister expressed his views on the improvements saying that disclosure of the “beneficial ownership” of companies; a global minimum corporate tax; fair digital taxation; review and revision of unequal investment treaties; and a coherent mechanism for monitoring illicit financial flows set up under the United Nations were also part of his proposed policy actions
Over this Prime Minister expressed contentment over the Final Report of the Panel marking his proposed policy actions, said it was a systemic problem, embedded within the international financial architecture.
“It requires a systemic solution. It cannot be resolved by piecemeal or cosmetic actions. The magnitude of the illicit financial flows is staggering, If recovered and returned, they can have a transformational impact on the development prospects of the developing countries, he said.
The prime minister also referred to the report and commented that it could enable the developing countries to eradicate poverty, reduce inequalities, build back better after the COVID crisis, address climate change and strengthen human rights.
Prime Minister also approved the three-point plan proposed by the panel, including applying international “values” of honesty and integrity to all financial transactions; strengthen policy frameworks; and reform and reinforce the relevant institutions dealing with the illicit financial flows.
He viewed that the said responses could form part of a Global Pact for Financial Integrity, for regulating national and cross-border financial transactions under a “values-based” system, encompassing accountability, transparency, legitimacy, fairness, inclusion and equity.
He also called for reflecting the said “values” in all national and international financial instruments, institutions and transactions – and particularly in those bodies, which addressed illicit financial flows.
Imran Khan stressed for implementing policies on illicit flows in a coordinated and coherent way by national and international institutions and bodies.
“International bodies dealing with tax matters, corruption and illicit financing should be inclusive and representative. They should not be used as instruments of pressure and coercion against developing countries,” he underscored.
Mentioning the significance of UN, he said under the UN, should coordinate all bodies dealing with the technical, legal and political aspects of illicit financial flows. It should incorporate a mechanism to adjudicate and mediate disputes on issues relating to illicit financial flows.
“It’s now time to act on the recommendations of the FACTI Panel. Pakistan will be happy to join in proposing the adoption of the FACTI Panel Report by the United Nations Economic and Social Council and the General Assembly.”
Pakistan would work actively with all like-minded countries to realize the said vital objectives, he added.
The FACTI Panel is the High Level Panel on International Financial Accountability, Transparency and Integrity for Achieving the 2030 Agenda. It aims to improve the world’s chances of achieving sustainable development by making recommendations that both strengthen current efforts to combat illicit financial flows, and close remaining gaps in the international system.
The event was also addressed by 75th President of the General Assembly Volkan Bozkir and 76th President of the Economic and Social Council Munir Akram.
The report presents 14 recommendations to reform, redesign and revitalize the global architecture, so it can effectively foster financial integrity for sustainable development. Besides, it stresses for strengthening coordination and global governance related to financial integrity as an essential component of the common agenda for the common future of present and coming generations.
