GFI recommends customs strengthening to detect misinvoicing

Global Financial Integrity (GFI) has said that countries need to focus on strengthening customs operations to effectively detect misinvoicing.

The non-profit advocacy organisation focused on stemming illicit fund flows (IFFs) says boosting technical capability and capacity building in customs departments to detect when trade misinvoicing occurs is key to capturing lost revenues.

GFI view

Most discussions about domestic resource mobilisation focus on improving the effectiveness of developing countries’ tax authorities, according to GFI.

But it says that these efforts, while useful, will not fix trade misinvoicing, because no tax authority is present at the ports of entry and exit where the illicit transactions take place.

Broader thinking

“The best-trained and well-run tax authority will still never be able to see misinvoiced goods leaving the port,” according to a GFI statement.

Therefore, the non-profit organisation argues that a broadening in the thinking of development experts must take root in order to address all aspects of the problem.

Categories: Trade Based Financial crimes News

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