$101 billion black money entered India in 2014, says global financial watchdog

The US-based think tank Global Financial Integrity (GFI) has said that an estimated $770 billion in black money entered India during 2005-2014.

In its latest report, the US-based think tank Global Financial Integrity (GFI) has said that an estimated $770 billion in black money entered India during 2005-2014.

Nearly $165 billion in illicit money exited the country during the same period, the global financial watchdog said.

However, in 2014 alone, about $101 billion black money entered the country while $23 billion exited, the report added.

The Washington DC-based research and advisory organization pegs illicit financial outflows at 4.2-6.6 per cent of developing country total trade in 2014.

Titled "Illicit Financial Flows to and from Developing Countries: 2005-2014," the report is the first global study to equally emphasize illicit outflows and inflows.

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Illicit inflows were found to have remained persistently high over the period between 2005 and 2014. Combined, these outflows and inflows are estimated to account for between 14.1 and 24.0 per cent of developing country trade, on average, the study said.

"Illicit financial flows (IFFs) from developing and emerging economies kept pace at nearly $1 trillion in 2014," the report said.

Titled 'Illicit Financial Flows to and from Developing Countries: 2005-2014', the report is the first global study to place equal emphasis on illicit outflows and inflows.

The report said total illicit financial outflow was three per cent (about $165 billion) of India's total trade of $5500.744 billion between 2005-2014.

Governments should establish public registries of verified beneficial ownership information on all legal entities to check black money, it suggested.

"All banks should know the true beneficial owner(s) of any account in their financial institution," the report said.