Africa Tax Administration Forum recently Introduced the Anti-Illicit Financial Flows policy tracker to tackle illicit financial flow. The tool was developed and validated by Tax Justice Network Africa, ATAF and the African Union to assess national policies, administrative processes, data systems, and inter-agency coordination in the fight against illicit financial flows.
According to experts, these flows drain billions of dollars from Africa every year, undermining development efforts across the continent.
Mandated by the AU’s Specialised Technical Committee on Finance and Monetary Affairs, the tracker has already been piloted in Namibia, Ghana, Côte d’Ivoire and Uganda.
The Liberia mission marks another important step, offering insights into both areas of progress and gaps that require urgent reforms.
Speaking on behalf of ATAF’s Executive Secretary, the ATAF Senior Policy Advisor to the AU, Emmanuel Eze, thanked the Liberian Government for its continued support as a committed ATAF member.
He emphasized that the tool provides critical evidence to guide reforms and reiterated ATAF’s readiness to support Liberia in strengthening its fight against illicit financial flow.
Liberian agencies participating in the mission welcomed the initiative, stressing the importance of the tracker in protecting domestic resources.
They also commended ATAF and its partners for equipping governments with practical tools to ensure that resources are mobilized, retained, and invested in the development of Liberia’s people.
Precise figures on Liberia’s total losses to illicit financial flows (IFFs) are difficult to determine, but various reports have estimated hundreds of millions of dollars in annual losses. The extractive sector is identified as a major source, with significant revenue lost to tax evasion, smuggling, and corruption.
- In October 2025, the head of Integrity Watch Liberia reported that IFFs threaten Liberia’s goal of a $1 billion national revenue target. The group’s analysis showed that 90% of artisanal gold leaves the country illegally, depriving it of millions in revenue.
- A 2025 report cited analysis from Dr. Bonokai Gould showing that IFFs combined with the informal sector could account for $150 to $175 million in annual revenue losses, representing 30% to 35% of potential tax revenue.
- In September 2025, Liberia piloted an Anti-IFFs Policy Tracker, and an official stated the country loses an estimated $966 million annually. This is driven primarily by losses in the extractive sector, trade mis invoicing, corruption, and tax evasion.
- A 2015 report from Global Financial Integrity similarly estimated annual losses of $966 million, amounting to 25% of Liberia’s Gross Domestic Product at the time.
- The OECD published a 2020 report estimating that illicit gold smuggling from Liberia ranged from $159 million (using 2013 prices) to $455 million (using 2011 prices).
- In 2017, Global Witness reported that logging companies owed the Liberian government $25 million.
- In a 2014 report, the Financial Intelligence Agency of Liberia referenced an estimate that the country had lost $20 million to “illicit money”.
Key sources of illicit financial flows
Multiple reports have identified the primary mechanisms for illicit financial flows out of Liberia:
- Tax Evasion: Corporate tax evasion and aggressive tax avoidance schemes are major factors, particularly in the extractive sector.
- Smuggling: Illegal exports, such as the smuggling of artisanal gold, account for a significant portion of the losses.
- Trade Misinvoicing: Deliberately falsifying trade invoices to move money across borders is a primary technique.
- Corruption: Bribery and political interference in the licensing and concession process facilitate illicit flows.
- Informal Economy: The large informal sector operates outside the tax system and contributes to substantial revenue leakage.
