This working paper examines illicit financial flows (IFFs) in the Western Balkans and Black Sea regions, shedding light on their scale, drivers, and consequences. Covering ten countries – Albania, Montenegro, Serbia, North Mace-donia, Bosnia and Herzegovina, Kosovo, Georgia, Moldova, Ukraine, and Armenia – the analysis combines trade data with econometric methods to estimate the magnitude, correlations, and impacts of IFFs. The paper explores in particular the dynamics of IFFs in trade with a focus on sanction evasion, strategic corruption, conflict financing, economic stability and implications for development assistance to the Global South.