Do Digital Technologies Facilitate Illicit Financial Flows?

Abstract

The emerging concept of illicit financial flows has become a crosscutting issue on the international agenda in recent years. This umbrella term refers to money illegally earned, transferred, or used. With the development of digital technologies, the use of information and communications networks as a tool for facilitating illicit financial flows is rising as one of the key challenges in tackling the problem of the movement of illegal funds. Digital technologies facilitate illicit financial flows at each stage, be it earning money illegally, transferring illegal funds, or using them. There are several areas where clear links between technology and illicit financial flows can be established. Part one defines illicit financial flows to establish the scope of the problem and provide the context for further analysis. Part two focuses on the issue of digital technologies in the process of earning money illegally and transferring illicit funds, and analyzes how technology can help in the process of acquisition, transfers, and integration of illicit finds. Part three discusses the role of technology in fighting illicit financial flows. Part four concludes with suggestions for further areas of research in this field and ways to tackle the problem more effectively.