Capital flight operates mainly through false invoices and manipulated transfer prices

Evidence

Like other African states, the countries of the franc zone are also victims of ‘capital flight’: these are funds that have been ‘illegally acquired’ and/or ‘sent abroad illegally’. These capital outflows pass through various processes, mainly used by multinationals: false invoices, the manipulation of ‘transfer prices’, that is, the transaction prices between the various entities of the transnational company involved, etc. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 316

Categorization

• DEFINE: Defines ‘capital flight’ and clarifies the mechanism of transfer-price manipulation within transnational companies.