At a time when the issue of whistleblowers in the financial industry has gained international attention1, this brief aims to evaluate whether information provided by insiders of the banking sector may contribute to the overall goal of reducing illicit capital flight from developing countries. It has been established that illicit capital flight out of the developing world has a devastating effect on poor countries (Reed and Fontana 2011). Such flows hinder a country’s sustainable development, negatively affect the stability and credibility of a state’s domestic financial system and institutions, and undermine international efforts to eliminate poverty2. Measures addressing illicit capital flight have focused primarily on anti-money laundering, in particular on the identification of politically exposed persons (PEPs) and the reporting of suspicious transactions involving them. However, these measures have been criticized for not achieving a large reduction in the volume of illicit flows.
Fuente: Anti-corruption Resource Centre – U4