Illicit finance is the financial activities involving illegally obtained or used money. It’s a broad term encompassing various schemes that aim to illegally generate money, launder money, and finance illegal activities.

This includes activities like drug trafficking, human trafficking, corruption, bribery, and fraud. Once obtained illegally, criminals need to disguise the source of their funds and integrate them into the legitimate financial system. This is done through money laundering schemes. Illicit finance also involves the movement and use of funds to support illegal activities like terrorism or proliferation of weapons.

Whistleblowing and Illicit Finance:

Whistleblowers working in banks or financial institutions can identify suspicious activity that might indicate money laundering. By reporting these red flags, they can help authorities track down dirty money and hold those involved accountable.

Whistleblowers within government agencies, businesses, or NGOs can expose corrupt practices that generate or facilitate illicit financial activities. This can include bribery schemes, embezzlement of public funds, or fraudulent contracts that enrich corrupt officials at the expense of legitimate businesses and taxpayers.

Whistleblowers can expose the financial networks that support illegal activities like drug trafficking or terrorism. By following the money trail, authorities can dismantle these networks and disrupt the flow of funds that fuel these crimes.

Whistleblower information can lead to the recovery of stolen assets or funds obtained through illegal means. Whistleblowers help improve transparency within businesses and government agencies, making it less likely for corruption and other financial crimes to go unnoticed.