Assembly/AU/Decl.5.(XXIV) Page 1 ASSEMBLY SPECIAL DECLARATION ON ILLICIT FINANCIAL FLOWS Doc. Assembly/AU/17(XXIV) We, the Heads of State and Government of the African Union, having met at our Twenty Fourth Ordinary Session of the AU Assembly in Addis Ababa, Ethiopia, from 30 to 31 January 2015; Recognizing the Conference of Ministers Resolution 886 (XLIV) which established the high-level panel on Illicit financial flows from Africa, Concerned with the increasing scale and extent of Illicit Financial flows from Africa, particularly from our extractive industries and natural resources which constitute a drain on the resources required for Africa’s development. Whereby, it is estimated that Africa has lost up to US$ 1.8 trillion between 1970 to 2008 and continues to lose extensive finances estimated up to US$150 billion annually through Illicit Financial Flows (IFF) or “Illicit Capital Flight” mainly through tax evasion, mispricing of trade and services by multi-national companies; Aware that the problem of illicit financial flows is exacerbated by corrupt tendencies of government agencies, lack of or weak African institutions both at national and continental levels in all sectors, governance challenges, political instability and conflicts, weak tax administration, and lack of capacity to monitor and curb such criminal activities among others; Realising the growing need for domestic resource mobilisation for the attainment of our continental development visions and goals particularly Agenda 2063 and the Common African Position on the post 2015 Development agenda, which both call for inclusive growth, sustainable development and social and economic structural transformation of Africa through optimal utilization of our natural resource endowments; Conscious that the amount of illicit financial flows from Africa is greater than the inflow of Overseas Development Assistance; Convinced that curtailing illicit financial flows through, inter alia, institutionalizing prudent legal and regulatory regimes, including fiscal policies that disallow financial secrecy, fight corruption, institute and/or strengthen African institutions, build African member states capacity for contract negotiation, tax administration and identify and return the resources lost through illicit financial flows can greatly contribute to the alternative sources of financing Africa’s development agenda; Further Convinced that the time is now for Africa’s Renaissance, for the continent to regain ownership of its natural resources and to implement sound, prudent management and good governance, with a view to optimizing the benefits derivable from its natural resources in particular extractive sectors and mineral resources for present and future generations while limiting negative environmental and macroeconomic impacts;