Publication Details
Abstract
This study examines the complexities of the secret economy, paying special attention to crimes like money laundering and tax fraud that are perpetrated through settlement relations. Although the wider effects of the shadow economy have been extensively studied, little is known about how particular legal flaws in financial systems allow these crimes to occur. Investigating the exploitation of regulatory gaps, particularly in decentralized finance and cryptocurrency platforms, the study employs a qualitative investigation of contemporary financial behaviors. The results show that these shadow transactions greatly reduce financial openness, making it possible for corruption and unchecked illicit fund transfers to occur. With consequences for global economic governance and sustainable development, the findings highlight the necessity of stronger laws and international collaboration to stop illegal cash flows.