25th Parliamentary Intelligence-Security Forum – Trade-Based Money Laundering
Honorable Dr. Ben M. Phiri, Member of Parliament in Malawi and former Cabinet Minister of Local Government and Rural Development, addressed the pressing issue of trade-based money laundering (TBML) and illicit financial flows in Africa. As Vice Chairperson of Malawi’s Parliamentary Committee on Public Appointments and Chairperson of the Southern and Eastern Africa Parliamentary Caucus on Sexual and Reproductive Health, he underscored the critical impact of illicit financial outflows on the continent’s development. Dr. Phiri elucidated that annually, billions of dollars are siphoned out of Africa through trade-based and other illicit financial activities, severely constraining resources that could otherwise support national development and the attainment of Sustainable Development Goals.
He provided concrete examples, such as the misappropriation of mineral samples and misinvoicing of first-grade commodities like prawns from Mozambique, which are downgraded abroad, depriving African nations of fair revenue. Highlighting legal and regulatory gaps, Dr. Phiri emphasized that while national laws exist, international cooperation is imperative to repatriate stolen or misappropriated assets. He also pointed out trade imbalances in international agreements, including challenges posed by double taxation, which favor foreign investors while restricting African companies’ access to global markets.
Dr. Phiri called for actionable resolutions and measurable deliverables from parliamentary forums, stressing that Africa cannot afford symbolic discussions without progress. He urged collaboration among African parliaments and their international partners to monitor illicit flows, reclaim lost resources, and fortify the continent’s economic sovereignty. Concluding passionately, he emphasized that Africa must decisively, positively, and consistently confront trade-based money laundering to break the cycle of poverty perpetuated by these illicit practices.
