However, methods of moving funds are dynamic and on some occasions these illegal funds are being operated under the umbrella of legal businesses or financial networks.

The real challenge, however, is the flow of illegal funds.

Greater vigilance to prevent such illegal inflows is being exercised.

The problem of illegal money laundering and flow of funds for purposes such as terrorism and illicit drugs has now become a global problem.

IV. Ways and means of advancing resource flows to Africa

Investment and private flows

13. Resource flows are analysed in this section under two main concepts aggregate net resource flows and net resource transfers.6

Promoting investment and private flows

Cash flows from investing and financing activities

Harmonized national laws, intervening especially in the poorly regulated areas that may favor uncontrolled movement of capitals from illicit activities.

The means to move funds are dynamic, constantly shifting and on occasions operating under the umbrella of legal businesses or financial networks.

G. Liquidity available cash versus liabilities

Fostering an enabling environment for development financial flows, including capital flows investment trade

Trade, investment and private flows

Policy makers were reminded that they need to be concerned not only with the overall size of financial transfers but also with the composition of flows since some flows are more likely to be sustained than others.

There is also the questions of freedom for movement of capital and the freedom for movement of persons.

Working capital shall be provided from the cash resources of the Fund account.

Mobilization of additional resources for African development a study on overall resource flows to Africa

However, these flows tend to be more volatile than official flows and pro cyclical.

There was the view that, in capital markets, long term flows should be liberalized before short term ones.

(c) Also subject to freezing or seizure are accounts receivable or payable concerning illegal funds or funds for which illegal funds have been exchanged or in which illegal funds have been mixed, subject to the same conditions as those applicable to the freezing or seizure of illegal funds.

27. There are three main categories of private resource flow loans, foreign direct investment (FDI), and portfolio equity investment.

VI. Measures to be taken against the effects of money derived from, used in or intended for use in illicit drug trafficking, illegal financial flows and illegal use of the banking system

III. Trends in resource flows

B. Private flows

Private capital flows have come to play the dominant role in development finance, eclipsing both official bilateral and multilateral flows.

8. The liberalization of cross border flows had led to the internationalization of investments by institutional funds.

Both private capital flows and workers' remittances constitute important sources of development finance for Africa as a whole.

Mobilizing international private financial flows for development

UNODC supports States in establishing the institutional machinery necessary to fight illegal financial flows.

(a) Exchange of information on illegal activities (sources, routes, caches)

Recognizing the crucial need for a substantial increase in financial resource flows to Africa to support the implementation of development activities of African countries,

4. Underlines the importance of promoting financial stability, and reiterates that measures to mitigate the impact of excessive volatility of short term capital flows and to improve transparency of and information about financial flows are important and must be considered

Projected movement of operational reserve and fund

(e) To support efforts to reduce capital flight and measures to curb the illicit transfer of funds.

Sub theme 2 Trade, investment and private flows

These include the flow of refugees seeking safety in neighbouring countries, human trafficking, the illicit flow of small arms and the illegal exploitation of natural resources.

Sources UNFPA. Financial Resource Flows for Population Activities in 2002 (New York, 2004) and UNFPA UNAIDS NIDI Resource Flows Project database.

20. Net resource flows and net transfers to SSA, though fluctuating, have been generally positive since the 1970s.

India also intends to pursue cooperation with other countries and relevant international organizations on different aspects of money laundering and illegal money flows.

(c) The Legal Assistance Fund (100 million pesos) to finance the activities of the Office of the Legal Assistant for Migrant Workers Affairs and

4. The situation with respect to Africa s share in total net resource flows, especially official development assistance (ODA), is discouraging.

Financial flows for development, including a durable solution for the external debt problems of the developing countries

On top of all this, there is a shadow financial system of non bank financial institutions that, like banks, borrow short and liquid and lend to or invest in longer term and illiquid assets. This shadow system includes structured investment vehicles (SIVs), conduits, money market funds, hedge funds, and investment banks.

Against the backdrop of recent economic and financial developments in Africa, the report analyses the trends in resource flows, as well as the prospects.