There has been an explosion in global and cross border trade for
some decades now. With this burst also comes the menace of illicit trade,
otherwise known as the underground economy. As markets open and demand grows, people try
to engage in illegitimate trade by producing, importing, exporting, purchasing
or selling items without complying with relevant legislations.
Illicit trade is a massive problem for
manufacturers, governments, regulators and multilateral agencies and indeed any
legitimate operator in the industry value chain. It extremely undermines government’s objectives on taxes and revenues, places
burdens on government’s regulatory and enforcement agencies and undercuts the potential
benefits of international trade.
