Please provide information regarding the potential of the Extractive Industries Transparency Initiative (EITI) to fight illicit financial flows (IFFs), especially on: a) whether EITI reports can be used to detect such flows; b) specific cases where EITI data helped identify corruption; and c) the potential legal barriers for the new EITI standards which include the publication of beneficial ownership.
Extractive industries and IFFs
EITI’s potential impact on governance
EITI data as a tool to track irregularities in the extracting sector
Potential national (legal) barriers for EITI implementation
This expert answer focuses on the potential of the data contained in the EITI reports to help improve governance and fight corruption. The first section explains why extractive industries are especially prone to IFFs. The second section explains the main mechanisms through which EITI aims to contribute to fighting corruption and improving governance. This section also explains the most important changes made to the EITI standard in 2016. The third section looks at ways in which the EITI report data has been used, but also points out its current shortcomings. The final section gives a short overview of the legal barriers for EITI implementation.
Roberto Martinez B. Kukutschka, Transparency International, firstname.lastname@example.org