Background Illicit financial flows – definition and scale

The term illicit financial flows (IFFs) has no standardised definition. The United Nations categorises IFFs as cross-border financial flows whose origin (e.g. corruption or tax evasion), transfer (e.g. money laundering) or use (e.g. financing terrorism) is illicit.

This broad definition of IFFs also encompasses financial flows that are not necessarily illegal but clearly hinder development. For example, multinational corporations take advantage of differences between national tax systems or loopholes in legal regulations to shift their profits and significantly reduce their tax payments. This deprives governments of important tax income.

Illicit financial flows represent a complex, global challenge. Estimating the total extent of illicit financial flows is difficult. However, there is international consensus that IFFs account for huge sums that greatly exceed those provided by official development funding.

to the overview page on illicit financial flows

As at: 06/08/2025