Related papers: Complex Systems of Secrecy: The Offshore Networks …
After the leak of 11.5 million documents from the Panamanian corporation Mossack Fonseca, an intricate network of offshore business entities has been revealed. The emerging picture is that of legal entities, either individuals or companies,…
Multinational corporations use highly complex structures of parents and subsidiaries to organize their operations and ownership. Offshore Financial Centers (OFCs) facilitate these structures through low taxation and lenient regulation, but…
In response to failures of central planning, the Chinese government has experimented not only with free-market trade zones, but with allowing non-profit foundations to operate in a decentralized fashion. A network study shows how these…
Power law degree distribution was shown in many complex networks. However, in most real systems, deviation from power-law behavior is observed in social and economical networks and emergence of giant hubs is obvious in real network…
In the global economy, the intermediate companies owned by multinational corporations are becoming an important policy issue as they are likely to cause international profit shifting and diversion of foreign direct investments. The purpose…
Systemic risk arises as a multi-layer network phenomenon. Layers represent direct financial exposures of various types, including interbank liabilities, derivative- or foreign exchange exposures. Another network layer of systemic risk…
The rise of Web3 and Decentralized Finance (DeFi) has enabled borderless access to financial services empowered by smart contracts and blockchain technology. However, the ecosystem's trustless, permissionless, and borderless nature presents…
Studies built on dependency and world-system theory using network approaches have shown that international trade is structured into clusters of 'core' and 'peripheral' countries performing distinct functions. However, few have used these…
Smart sanctions are an increasingly popular tool in foreign policy. Countries and international institutions worldwide issue such lists to sanction targeted entities through financial asset freezing, embargoes, and travel restrictions. The…
Money laundering is a major global problem, enabling criminal organisations to hide their ill-gotten gains and to finance further operations. Prevention of money laundering is seen as a high priority by many governments, however detection…
We address a fundamental problem that is systematically encountered when modeling complex systems: the limitedness of the information available. In the case of economic and financial networks, privacy issues severely limit the information…
Money launderers exploit the weaknesses in detection systems by purposefully placing their ill-gotten money into multiple accounts, at different banks. That money is then layered and moved around among mule accounts to obscure the origin…
We refer to an individual holding a non-negligible fraction of the country's total wealth as an oligarch. We explain how a model due to Boghosian et al. can be used to explore the effects of taxation on the emergence of oligarchs. The model…
A novel network-based approach is introduced to analyze banking systems, focusing on two main themes: identifying influential nodes within global banking networks using Bank for International Settlements data and developing an algorithm to…
We present a methodology to extract the backbone of complex networks based on the weight and direction of links, as well as on nontopological properties of nodes. We show how the methodology can be applied in general to networks in which…
The global financial system can be represented as a large complex network in which banks, hedge funds and other financial institutions are interconnected to each other through visible and invisible financial linkages. Recently, a lot of…
Often, corruption is described as taking place within or supported by a network: A collection of individuals structured in such a way as to enable the transaction of bribes for favors. Surprisingly, despite the network nomenclature,…
The Equation Group, an advanced persistent threat identified by Kaspersky's Research Lab in 2015, was detected during the investigation of the Regin malware. Attributed to the United States National Security Agency, the Equation Group's…
In unstructured peer-to-peer (P2P) networks, the overlay topology (or connectivity graph) among peers is a crucial component in addition to the peer/data organization and search. Topological characteristics have profound impact on the…
Modern financial networks exhibit a high degree of interconnectedness and determining the causes of instability and contagion in financial networks is necessary to inform policy and avoid future financial collapse. In the American Economic…