Call for Analysis of Regional Illicit Financial Flow Vulnerability

Combatting Illicit Economies Programme (Latin America) Call for: Analysis of Regional Illicit Financial Flow Vulnerability

From

Illicit Economies Programme ("CIEP") is a programme funded through the UK: British Embassy, Colombia (with, and on behalf of, other British Embassies in region).

First published:

August 9, 2021

Overview/Objectives

• The Combatting's Conflict Stability and Security Fund. It partners with countries in Latin America to tackle threats including serious organised crime (from drugs to money laundering to environmental crime), grand corruption and instability/conflict.

• There are various channels used to move money internationally - whether incoming or outgoing - such as, but not limited to, trade, banking positions, foreign direct investment, and portfolio investment. Each of those will have different relative levels of importance to a given country and including as illicit finance moves between countries. Each country may also experience different levels of vulnerability to the misuse of those channels by a range of actors and whether working within a country or transnationally across the region.

• To better understand the vulnerability of the focus countries to illicit financial flows and relevant importance of those flows the CIEP seeks an implementing partner who will be able to analyse such vulnerability and prioritise them according to a matrix with four variables:

  1. Channels used for illicit financial flows (e.g., international trade, foreign direct investment, etc.);
  2. Volume of those flows;
  3. Counterpart countries where those flows originate or are destined (not restricted to the focus countries); and
  4. Sectors generating those flows (e.g., classification based on the Harmonised System used for international trade).

• The final analysis should, at a minimum, include in relation to each focus country:

  1. Vulnerability ranking for each of the four variables mentioned above;
  2. Composite ranking incorporating 4.a (Channel), 4.b (Volume) and 4.c (Counterpart);
  3. Composite ranking as 5.b, plus 4.d (Sector);
  4. The vulnerability ranking evolution over the past 10 years and their average;
  5. List of actionable recommendations for tackling the identified vulnerabilities/shortfalls; and
  6. Methodology used to assess/quantify each variable.

• The CIEP invites Bidders to propose further channels than the four mentioned above and different sectorial classifications.

• The focus countries which the programme seeks analysis of are: Colombia, Peru, Panama, Venezuela, Ecuador and the Dominican Republic.

Project bids

The project bid should not exceed GBP150,000 albeit the programme will consider bids proposing compelling activity in excess of that. Bidders will need to submit a proposal with the following requirements:

1. Propose methodology. Maximum of three pages describing the approach and operational methodology that will support the proposed delivery solution, providing evidence of the capacity, capability, experience and expertise of the organisation to deliver the proposed solution within the location(s) and context (including the thematic context) specified. Bidders should support their response with evidence from similar/relevant projects already delivered;
2. Curriculum vitae(s) of those proposed to work on the project (maximum of two pages per person);
3. FCDO Project Proposal Template that should include a detailed project plan that includes a clear project timeline and supporting detail; and
4. Activity Based Budged template, with a detailed breakdown of cost per activity proposed in the Project

Proposal.

The project must have completed all activity within four months of signing the grant agreement.

Official Development Assistance

All expenditures must qualify as Official Development Assistance ("ODA"). ODA is a term created by the Development Assistance Committee of the Organisation for Economic Co-operation and Development to measure aid.

ODA should be undertaken by the official sector (official agencies, including state and local governments, or their executive agencies) and has promotion of economic development and welfare as the main objective.

Priorities

We are seeking an implementer to carry out a series of country-specific analyses wrapped ultimately into a regional analysis.

It is anticipated the majority of the research will be able to be completed from public, open sources although some close-source interviews may also be necessary. As appropriate, Embassies in region may be able to assist the implementer in making contact with key stakeholders in State agencies/institutions and in order to provide a fuller picture of the movement of IFFs within or out of a country.

Albeit some country-specific, sectoral analysis is called for to demonstrate where and how IFFs are generated within focus countries, the report should nonetheless concentrate on cross-border flows and so as to improve understanding of the international dynamics/mechanisms (trade-based money laundering; free-trade zones etc) that allow for IFFs to proliferate across the region.

Scope and scale

The scope and scale of the personnel, resource and time required to complete this project can be set out within an implementer's bid for activity.

We anticipate a small team (not necessarily located within any particular of the focus countries but with an ability to reach into each) will be necessary and that the analysis can be completed within four months of signing the grant agreement.

Output features

Structure: for the implementer to decide, as long as it responds to the items identified in the specific Overview/Objectives section of this document. Format: PDF Report. Language: Spanish/English.

Confidentiality:

We anticipate the implementer may be an institution engaged in building awareness around the issues raised by this study.

In principle, the UK Government would not object to the products of this project being made public and, indeed, with implementers including an element of awareness raising around those products as part of overall project design.

In so far as information may be gleaned from sensitive sources though, the parameters of such permission will need to be discussed and agreed with the Embassies at the time of signing a contract/grant. Private consultancy firms, consortia of multidisciplinary experts or non-profit organisations can participate in this call for bids.

How to bid: General Guidance on Project Proposals

1. Stage 1: Potential implementers are invited to submit a full proposal to CSSF.CIEP