Projects

On empirics of illicit capital flows

Ing. Mária Širaňová, MA., PhD., prof. Dr. Jarko Fidrmuc

Members of project
Carolina Rachel, Ing. Zuzana Košťálová, PhD., Florian Horky, M.Sc., PhD. 'visiting', Ing. Boris Fišera, PhD.

• Basic informations
• Characteristics

• Duration of the project: 01/2024 - 12/2025
  ID number: SAS-DAAD-2023-03

   

• Volume of illicit financial flows has been steadily increasing over the last decade bringing about severe socio-economic consequences for countries affected. While it was historically believed that the IFFs target predominantly low-income economies with insufficient quality of institutions, low public trust and underdeveloped financial markets, recent experience has also highlighted the role of wealthy individuals and multinational companies residing in developed countries who are often involved in sophisticated schemes aimed at transferring capital outside official oversight. The United Nations has recently (2015) recognized the threat posed by lack of information surrounding the IFFs problem by underscoring the importance of reduction of IFFs as one of the priorities put forward in its 2030 Agenda. The research team would like to contribute to this important topic in the following way. The proposed project consists of two working packages that are interrelated by the pressing issue of illicit financial flows. Both packages strongly rely on the research expertise of members of the Slovak and German teams. The topic of financial innovations and behavioral factors affecting the crypto markets has been at the forefront of research conducted by members the German team for already a longer period of time. The strong expertise of Slovak team members in the area of illicit financial flows and exchange rate modelling is a perfect fit as many of the illicit financial flows nowadays take upon a form of digital transactions using cryptocurrencies as a conduit. Last, the proposed research topics not only reflect upon the most recent trends in the field of financial innovations and financial stability, but the research outcomes can be of high relevance also for relevant policymakers (e.g., central bankers, regulators).