Blockchain and AI Highlighted as Tools to Combat Illicit Financial Flows in Africa

As Africa continues to grapple with illicit financial flows (IFFs), experts are increasingly pointing to blockchain and artificial intelligence (AI) as critical tools in the fight against these illegal activities.

Olanipekun Olukoyede, the chairman of Nigeria’s Economic and Financial Crimes Commission (EFCC), underscored the potential of blockchain technology and artificial intelligence (AI) in tackling illicit financial flows (IFFs) in Africa. Speaking at the Pan-African Conference on Illicit Financial Flows and Taxation, he emphasized the annual loss of $88.6 billion due to IFFs across African nations.

Combating Illicit Financial Flows

The conference, a key annual event organized by the African Union, gathers stakeholders from across the continent to address the issues of IFFs and taxation. It serves as a platform for exchanging insights, strategies, and best practices to combat these financial challenges.

Olukoyede stressed the importance of establishing robust legal frameworks and enhancing capacity at national, regional, and international levels. He advocated for the adoption of advanced technologies such as data analytics, blockchain, and AI to improve asset tracking and recovery efforts. He highlighted the significant impact that recovered funds could have on infrastructure, healthcare, and education across Africa. As an example of successful international cooperation, he cited the recovery of $311 million from the United States in 2020, funds linked to former Nigerian dictator Sani Abacha.