Unreported international movements of funds

Concealed and unreported money flows influence the economy in a number of ways. Balance of payment accounting gets distorted, and the availability of such funds encourages corruption, perhaps even leading to politically destabilizing bribes. Undocumented money creates an illegal economic system with an advantage in competing with legal systems in such areas as real estate and banking. Such 'dark monies', once repatriated, contribute to inflation and, when successfully laundered, constitute the reward for crime and tax evasion.