More News

Incentive Imbalances in Thai Customs Enforcement Encourage Illicit Flows
April 7th, 2011
In Thailand, corruption in customs enforcement is a fact of life.  The Bangkok Post notes that customs officials almost universally demand “tea money,” or bribes, and bonuses to customs officials based on a percentage of a confiscated shipment’s value cause the length of inspections to stretch out interminably.  These specific customs procedures and rules, along with the flawed incentive structures they create, have led to an increase in illicit financial flows (IFFs) from Thailand due to trade mispricing. Illicit financial outflows due to trade mispricing occur when individuals or companies use export under-invoicing and import over-invoicing to transfer funds...
Continue Reading
Follow @FinTrCo