EFCC Chairman recommends blockchain, AI for tracking and recovering $88.6 billio

The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Olanipekun Olukoyede, has called for the use of blockchain technology and artificial intelligence to track and recover $88.6 billion stolen from African countries annually through illicit financial flows (IFFs). 

Highlighting the significant economic loss, Olukoyede emphasized the urgent need for advanced strategies during his keynote address at the Pan-African Conference on Illicit Financial Flows and Taxation.

Olukoyede pointed out that Africa loses $88.6 billion each year to IFFs, funds that could otherwise be invested in critical infrastructure, healthcare, and education. 

He cited successful recoveries, such as the $311 million linked to Nigeria's former Head of State, Sani Abacha, which was repatriated from the United States in 2020, as examples of effective international cooperation.

Illicit Financial Flows in Africa
[06-28, 8:35 p.m.] Bosman business: The issue of illicit financial flows has been a long-standing challenge for African countries. The notorious Abacha loot, for instance, has seen multiple recoveries over the years. 

"Illlicit financial flows pose a grave challenge to Africa's economic stability and development," Olukoyede stated
[06-28, 8:36 p.m.] Bosman business: low-tax jurisdictions.

Olukoyede also incorporated insights from the recent high-level technical stakeholders meeting in Addis Ababa, held from May 28-30, 2024. 
Organized by the African Union Advisory Board against Corruption (AUABC) and the African Union Commission – Political Affairs, Peace and Security Department (AUC-PAPS), in collaboration with the GIZ Global Program on Illicit Financial Flows (GP-IFF), the meeting focused on establishing the Pan-African Asset Recovery Practitioners Forum.
Addressing the challenges in asset recovery, Olukoyede highlighted the technical, legal, and political hurdles that complicate the process of tracing, freezing, and repatriating illicit funds. He called for the strengthening of legal and institutional frameworks across African countries to better combat IFFs.

"Technical, legal, and political hurdles complicate the process of tracing, freezing, and repatriating illicit funds," Olukoyede noted. "Strengthening legal and institutional frameworks across African countries is essential to better combat illicit financial flows."

Pan-African Conference on Illicit Financial Flows
The Pan-African Conference on Illicit Financial Flows (PAC) is the premier annual forum of the African Union (AU). 

It brings together relevant actors across Africa to discuss issues related to illicit financial flows and taxation on the continent. 
The conference serves as a platform for stakeholders to share insights, strategies, and best practices in addressing the challenge of IFFs.
In conclusion, the EFCC Chairman's recommendations highlight the critical need for enhanced collaboration, technological adoption, and international pressure to effectively track and recover stolen assets. 
By implementing these strategies, African countries can significantly reduce the economic drain caused by illicit financial flows and redirect these funds towards vital developmental projects
Source
Nairametrics