QUESTION 3 [20 MARKS]

5 practices to prevent and disrupt illicit financial flows

"Six months into the Covid-19 pandemic, Transparency International found reliably documented instances of Covid-19-related corruption and misconduct across 17 countries and involving $1.1-billion in public funds. This money would have covered the cost of 50,000 ventilators. The illicit financial flow of money and goods, covering everything from money used to fund terrorist activity to the proceeds of tax or sanctions evasion to the laundering of corrupt or criminally obtained profits, is widely recognized as 'one of the greatest threats to a sustainable future.

Source: Ulbrich, C. (2021). 5 practices to prevent and disrupt illicit financial flows. https://www.weforum.org/agenda/2021/06/5-practices-to-prevent-and-disrupt-illicit-financialflows/ (accessed 24 August 2021).

QUESTION:

Research and discuss how illicit financial flows affect inequality and recommend measures that South Africa can implement to lessen and or prevent this.