Regional Coordinated Audit on Illicit Financial Flows – Pooling of National Experiences and Lessons Learned

This report presents the findings of the second coordinated audit led by the African Organization of Supreme Audit Institutions (AFROSAI), conducted with the participation of twelve African countries. Launched in April 2023, this performance audit—incorporating compliance elements—evaluates the legislative, regulatory, and institutional frameworks governing tax revenue mobilization and the fight against Illicit Financial Flows (IFFs) across the continent.

Aligned with the African Union’s Agenda 2063 and United Nations Sustainable Development Goal (SDG) 16.4, the report highlights structural gaps within national systems: insufficient transparency in legal frameworks, weak inter-institutional cooperation mechanisms, limited capacities of tax administrations, abusive transfer pricing practices, and the adverse impact of stability clauses and excessive tax incentives on public revenue.

Through a comparative analysis of national experiences, the document formulates concrete recommendations for African governments, AFROSAI, and the African Union. These recommendations aim to strengthen financial governance, enhance domestic resource mobilization, and curb the scourge of illicit financial flows, which deprive the continent of tens of billions of dollars annually.