The annual illicit financial flows amount to US$1.2 billion, but in some years the sum is by 60% higher than the estimates. This money fuel what underdevelopment of the country means. During 20 years, these flows in Moldova came to US$15-20 billion. The illicit financial flows were determined without taking into account the trafficking in arms, drugs, human beings and the funds stolen from the banking system, economist of the Institute for Development and Social Initiative “Viitorul” Veaceslav Ioniță was quoted by IPN as saying in the talk show “15 minutes of economic realism”. The program is produced by “Viitorul” in partnership with RFE/RL’s Moldovan Service.
The economist noted that the illicit financial flows are obtained by four schemes. Half of the sum of US$1.2 billion comes from underestimated imports. This scheme enables US$600-700 million to enter Moldova annually. This money reaches the country’s underground economy. The second scheme consists in the illegal taking of money out of the country by overestimating imports. US$350-400 million is annually taken out of the country by this scheme. This money leaves and stops in tax heavens. A part of the money comes back to the country in the form of foreign investments from tax heavens. This scheme involves state-owned companies and in this case it is not only tax evasion, but also appropriation of public funds.
The third scheme by which US$170 – 200 million goes out of the country is based on reduced prices on exports By this mechanism, money reaches the accounts of offshore companies. For example, a company from Moldova sells assets worth US$10 million to an offshore company for US$5 million and this company, for its part, sells it to another company for US$10 million. The difference remains in the accounts of the company from the tax heaven. A similar scheme is employed when exporting at overprices and US$80-100 million enters Moldova annually this way. By the same scheme, apparently legal money intended fort financing different political parties can be brought into the country from abroad.
Veaceslav Ioniță said the authorities should cooperate with the development partners so as to reduce the phenomenon. A mechanism should be worked out to ensure the legalization of money.
In the world rankings of illicit financial flows, Moldova takes the 46th position, with US$ 304 per capita, being at the same level as Fiji and Togo.
