The Integrated National Financing Framework (INFF) is a UN joint programme in partnership with the Government of Egypt that aims to develop capacities and put in place simple systems to continuously measure, map and compare financing flows, which subsequently help in achieving the Sustainable Development Goals (SDGs). An important element of this project is identifying financing opportunities, through better availability and quality of data, in particular data on Illicit Financial Flows (IFFs). The indicator framework to monitor progress towards achieving the SDGs proposes an SDG indicator 16.4.1 to measure the “total value of inward and outward illicit financial flows (in current United States dollars)”. Custodian agencies of SDG indicator 16.4.1, United Nations Conference on Trade and Development (UNCTAD) and United Nations Office for Drugs and Crime (UNODC), released the Conceptual Framework for the Statistical Measurement of Illicit Financial Flows in October 2020. In July 2021, UNCTAD released a draft of Methodological Guidelines to measure Tax and Commercial IFFs for pilot testing, aimed at statistical and other national authorities with a mandate to collect and access relevant information. In parallel, UNODC developed guidelines to measure IFFs from illegal markets and other crime-related activities. National circumstances dictate a comprehensive and tailored approach to produce reliable and granular IFF statistics. Measurement of the many types of IFFs in one indicator can only be done in close collaboration within the national statistical system (NSS) and with administrative data providers, in coordination by the national statistical office. The compilation of SDG indicator 16.4.1 is a technical, statistical activity that must be carried out independently in line with the Fundamental Principles of Official Statistics.
UNODC is providing external support to UNCTAD and the Ministry of Planning and Economic Development of Egypt (MPED) to build statistical capacity to measure IFFs from selected criminal activities. Drug trafficking and smuggling of migrants have been selected as relevant activities most at risk of IFFs in the country. After launching a data availability assessment process, mapping public information and data available to UNODC, as well as conducting training to understand crime related IFFs and apply measurement methods, UNODC is planning an on-sight visit to various Egyptian national authorities with the below stated scope and objectives.
UNODC on-sight visit is expected to involve MPED and the relevant official providers of data on drug trafficking and related IFFs in Egypt. The meetings will be conducted in English with simultaneous interpretation in Arabic. The meetings will be conducted as in-person events, with limited hybrid option to cater for external experts (optional).
The objectives of the workshop with drug institutions on drug-related IFFs data collection and measurement methods will be:
- In-depth review of methodological guidelines to measure IFFs associated with drug trafficking;
- Conduct practical exercises to understand the main measurement aggregates and indicators, as well as methods and approaches to measure drug trafficking-related IFFs, consistently with the language and framework of System of National Accounts;
- General review of data requirements and data challenges
- Guiding institutions to the finalize the compilation of the data availability assessment form, which is the main tool needed to map and identify different data sources, particularly on indicators with major data gaps;
- Introduction to the data collection form on drug-related IFFs;
- Discuss data collection next steps and possible ways forward to estimates production.
