Illicit Financial Flows

Illicit Financial Flows (IFFs) have received increased attention in light of international corruption scandals, high-profile leaks about extensive tax abuse schemes, and the continued fight against terrorism financing and organized crime. Indeed, reducing IFFs is now a key target of the UN Sustainable Development Goals and other notable institutions. Consequently, there are renewed debates about both how to operationally define IFF and the methodologies that are used to estimate the extent of IFFs. This is because, despite its contemporary prominence, the concept itself remains ambiguous, whilst the current estimation strategies are undermined by several limitations. This book addresses these key issues, by investigating and schematizing the concept of IFF and critically evaluating the current models used to estimate IFFs. From this, the book proposes an original flow-network approach through which to produce longitudinal and country-specific estimates of IFFs and the gross value added related to the transnational trafficking. Finally, the book advocates for a reformulation of the current definition of IFFs to one that is more specific and operationalizable; doing so will allow scholars and policy-makers to better clarify the relationship between IFFs, the sources of capital and the channels that are used to move capital abroad.