A/HRC/31/61 High-level panel on illicit financial flows from Africa 60. The African Union and the Economic Commission for Africa established the Highlevel Panel on Illicit Financial Flows in February 2012 to address the debilitating problem of illicit financial outflows from Africa. The Panel carried out consultations, country visits and studies in six African countries to inform its report, which was launched in Addis Ababa on 1 February 2015. In the report, the Panel argues that illicit financial flows are a potential source of domestic resource mobilization for the continent that, if tapped, could have positive impacts in terms of development, reducing aid dependence and governance. The report ends with a series of policy recommendations, both for African countries and other actors. Addis Ababa Action Agenda 61. The third International Conference on Financing for Development, held in Addis Ababa from 13-16 July 2015, adopted on its last day the Addis Ababa Action Agenda. The Agenda states that measures to curb illicit financial flows will be integral for achieving sustainable development (para. 18) and devotes a significant portion of its discussion of domestic public resources to combatting tax abuse. In paragraph 23 of the Addis Ababa Action Agenda, States made the following important commitments: We will redouble efforts to substantially reduce illicit financial flows by 2030, with a view to eventually eliminating them, including by combating tax evasion and corruption through strengthened national regulation and increased international cooperation. We will also reduce opportunities for tax avoidance, and consider inserting anti-abuse clauses in all tax treaties. We will enhance disclosure practices and transparency in both source and destination countries, including by seeking to ensure transparency in all financial transactions between Governments and companies to relevant tax authorities. We will make sure that all companies, including multinationals, pay taxes to the Governments of countries where economic activity occurs and value is created, in accordance with national and international laws and policies. 62. Furthermore, in paragraph 25 of the Addis Ababa Action Agenda, States committed themselves to strive to eliminate safe havens that create incentives for transfer abroad of stolen assets and illicit financial flows and to strengthen regulatory frameworks at all levels, to further increase transparency and accountability of financial institutions, the corporate sector and public administrations. 63. The Independent Expert welcomes many elements of the Addis Ababa Action Agenda, including its explicit call to respect human rights and the specific attention it gives to tax abuse, including both tax evasion and avoidance. However, several concerns raised by the Independent Expert during the preparatory process of the Conference were ultimately not addressed in the final outcome document. He worried, for example, about the vagueness of the commitments to “substantially reduce” and “eventually eliminate” illicit financial flows, and recommended that a more measurable target with a specific deadline be included.50 He also argued that, to fully do justice to the human rights concerns raised by tax abuse, more explicit references to tackling secrecy jurisdictions, strengthening bank oversight and ensuring that financial service providers exercise due diligence would be needed. Yet the final language adopted remains weak, as it is unclear what counts as a “safe haven” and what exactly States and financial institutions must do in order to reduce the 50 16 See comments by the Independent Expert of 26 May 2015, available from www.ohchr.org/Documents/Issues/IEDebt/Paper3FFD22May2015.pdf.