A/HRC/28/60
United Nations
General Assembly
Distr.: General
10 February 2015
Original: English
Human Rights Council
Twenty-eighth session
Agenda item 3
Promotion and protection of all human rights, civil,
political, economic, social and cultural rights,
including the right to development
Illicit financial flows, human rights and the post-2015
development agenda*
Interim study by the Independent Expert on the effects of foreign debt
and other related international financial obligations of States on
the full enjoyment of all human rights, particularly economic,
social and cultural rights, Juan Pablo Bohoslavsky
Summary
Illicit financial flows generated from crime, corruption, embezzlement and tax
evasion represent a major drain on the resources of developing countries, reducing tax
revenues and the scope for progressive taxation, hindering development and the rule of law,
exacerbating poverty and inequality, and undermining the enjoyment of human rights. Tax
evasion and abuse are considered to be responsible for the majority of all illicit financial
outflows, followed by illicit financial flows relating to criminal activities, such as drug and
human trafficking, the illicit arms trade, terrorism and corruption-based illicit financial
flows. According to some estimations developing countries lost US$ 991 billion in illicit
financial outflows in 2012 and those flows increased in real terms at a rate of 9.4 per cent
per annum over the period 2003–2012. The annual loss is substantially more than the
estimated yearly costs of achieving the Millennium Development Goals.
The present interim study is submitted pursuant to Human Rights Council resolution
25/9, and updates earlier reports by the previous Independent Expert. It outlines how illicit
financial flows undermine the enjoyment of economic, social, cultural, civil and political
rights and emphasizes the need for due diligence and due process in the fight against illicit
financial flows, for better protection of witnesses and whistle-blowers and for incorporating
human rights considerations in the management of returned stolen assets. It concludes with
recommendations on how the goal of curbing illicit financial flows could be
operationalized within the post-2015 development agenda of the United Nations.
* Late submission.
GE.15-02121 (E)