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Watchdogs or partners in crime? The power play of governance and illicit financial flows: a systematic literature review

Muhammad Khalil et al.

Journal of Money Laundering Control2025https://doi.org/10.1108/jmlc-08-2025-0147article
ABDC C
Weight
0.37

What the paper says

Purpose 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. Design/methodology/approach 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. Findings 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. Research limitations/implications 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. Originality/value 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.

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https://doi.org/https://doi.org/10.1108/jmlc-08-2025-0147

Or copy a formatted citation

@article{muhammad2025,
  title        = {{Watchdogs or partners in crime? The power play of governance and illicit financial flows: a systematic literature review}},
  author       = {Muhammad Khalil et al.},
  journal      = {Journal of Money Laundering Control},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1108/jmlc-08-2025-0147},
}

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Watchdogs or partners in crime? The power play of governance and illicit financial flows: a systematic literature review

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.