- Saudi Arabia reveals to the UN the danger of illegal cash flows to the stability of states.
Saudi Arabia stressed that illegal cash flows pose a major threat to the financial stability of states and to the achievement of their national goals for sustainable development.
This came in a speech delivered by the Chairman of the Finance and Economic Committee, First Secretary Bandar Al-Nahdi, to the United Nations during a meeting on the international cooperation to combat illegal cash flows and promote good practices related to the return of assets.
“The illegal cash flows are constantly increasing beyond detection, distorting macroeconomic stability, creating severe complications for developing countries that cannot afford more burdens, and depriving them of the resources needed to continue exercising their economic, social, and cultural rights, especially their right to development.” Al-Nahdi said.
The Chairman of the Finance and Economic Committee stressed the urgent need for developing countries that their economies are in transition, to return assets from illegal sources, consistent with the principles of the United Nations Convention against Corruption, so that they could prepare and finance development projects in accordance with their priorities. He also pointed out that illegal cash flows play a major role in reducing resources to finance sustainable development and negatively affect the economic, social and political stability of countries, especially the developing ones.
The Chairman of the Finance and Economic Committee pointed out that the measurement of illegal cash flows pose a challenge, particularly in the absence of any tool or process that effectively measure the associated clandestine activities, and that the return of funds from illegal sources to the countries of their origin require coordination and cooperation between the requesting and the requested states, including between the competent authorities, in particular the judicial authorities, to facilitate effective international cooperation for the rapid recovery of assets of illegal sources.
Al-Nahdi added that the United Nations Plan for Sustainable Development 2030 stressed the importance of significantly reducing the illegal flows of funds and arms by 2030. The Addis Ababa Plan of Action adopted at the Third International Conference on Financing for Development stressed that measures to curb cash flows and encourage various United Nations bodies to continue to work and consider ways of addressing this phenomenon.