This study aims to conduct a systematic literature review on illicit financial flows (IFFs), with a focus on uncovering the institutional and behavioral factors that shape such flows at global, national and corporate levels.
Following the PRISMA protocol, 25 highly cited peer-reviewed articles (2005–2023) were retrieved from Scopus. Manual thematic coding and deductive synthesis were applied to categorize evidence related to enforcement failures, regulatory arbitrage, institutional loopholes and the dual role of technology. A new conceptual framework links IFF dynamics to governance and cross-border accountability.
Four key themes emerged: definitional ambiguities and inconsistent metrics, regulatory arbitrage through trade misinvoicing and capital shifting, opaque intermediaries and shell structures and digital enablement via fintech and unregulated platforms. These patterns reflect a broader enforcement–enablement dynamic, with limited institutional perspectives and weak cross-jurisdictional regulatory coordination.
This review is limited to English-language journal publications indexed in Scopus, potentially omitting gray literature and policy-based regional insights, particularly from low-income jurisdictions.
This study offers a theory-informed synthesis of IFFs by reframing them as outcomes of systemic governance failures rather than isolated financial crimes. It integrates governance, compliance and deterrence perspectives into the enforcement–enablement framework and aligns findings with Sustainable Development Goals 16.4 and 17.
