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International Informal Capital Flows and Sustainable Finance: China’s Regulatory Approach

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Sustainable Finance and Financial Crime

Part of the book series: Sustainable Finance ((SUFI))

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Abstract

International informal capital flows (IICFs) have a significant impact on the United Nations sustainability goals by undermining economic/monetary, political and social stability, reducing public resources available for development and increasing levels of poverty and inequality. There is an initial conceptual problem in defining and measuring IICFs which has been influenced by competing perspectives of national regulators and academic commentators. A case study on China is valuable in showing how various methods of money laundering are utilised to facilitate the illegal export of trillions of dollars of capital. However, China may be different from other develo** countries because of the significant capital inflows into China, through a process of ‘round-trip**’. China has dealt with the global challenge of financial crime through its Anti-Money Laundering Regulation which implements the FATF International Standards and by its foreign exchange control regulatory regime which is designed to maintain financial stability and facilitate long-term positive economic development. It is argued that China’s search for sustainable finance can only be effective if there are increased levels of transparency and an expansion of international co-operation.

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Authors and Affiliations

  1. University of Sydney, Sydney, NSW, Australia

    David Chaikin

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  1. David Chaikin
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Correspondence to David Chaikin .

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  1. École de gestion, Université de Sherbrooke, Sherbrooke, QC, Canada

    Michel Dion

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Chaikin, D. (2023). International Informal Capital Flows and Sustainable Finance: China’s Regulatory Approach. In: Dion, M. (eds) Sustainable Finance and Financial Crime. Sustainable Finance. Springer, Cham. https://doi.org/10.1007/978-3-031-28752-7_4

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