Brazil Capital Flight Illicit Flows and Macroeconomic Crises

Brazil: Capital Flight, Illicit Flows, and Macroeconomic Crises, 1960 -2012 An Overview of GFI’s September 2014 Report with a Comparison to the BRICS Raymond Baker President, Global Financial Integrity September 9, 2014

Cumulative Illicit Outflows US$401. 6 billion flowed illicitly out of Brazil from 1960 through 2012. – US$372. 3 billion (or 92. 7%) from trade misinvoicing. – US$29. 4 billion (or 7. 3%) due to illicit hot money outflows.

Components of Brazil’s Illicit Financial Flows (1960 -2012) (in millions of U. S. dollars)

Illicit Financial Flows from Brazil: 1960 -2012 (in millions of U. S. dollars)

How Trade Misinvoicing Works

BRICS: Cumulative IFFs, 2002 -2011 250, 000 Millions of U. S. Dollars 200, 000 150, 000 100, 000 50, 000 0 2002 2003 2004 Brazil 2005 Russia 2006 India 2007 China 2008 South Africa (in millions of U. S. dollars) 2009 2010 2011

BRICS: IFFs to GDP, 2002 -2011 12. 00% 10. 00% 8. 00% 6. 00% 4. 00% 2. 00% 0. 00% 2002 2003 2004 Brazil 2005 Russia 2006 India 2007 China (in percent of GDP) 2008 2009 South Africa 2010 2011

Contact Information Today’s Speakers: Press Inquires Raymond Baker President Global Financial Integrity rbaker@gfintegrity. org +1 202 293 0740 Direct all press inquiries to: Clark Gascoigne Communications Director Global Financial Integrity cgascoigne@gfintegrity. org +1 202 815 4029 www. gfintegrity. org