Twelfth Global Studies Conference

Abstract

The traditional shadow economy commonly associated with the subsistence and rural, has in recent years expanded into the sphere of a trans urban-rural digital economy. This is made easier through the rise of development and usage in the Internet of Things (IOT) as well as digital platforms. While governments and compliance experts worldwide are still tackling in a bid to shrink a massive traditional shadow economy through anti-money laundering efforts, the rise of digital economy and commercial activities it encompasses, however complicates the efficiency and usage of traditional compliance mechanisms. As a result, the digital shadow economy’s expansion can cause both national economic problems to become more severe, especially in the case of South Asia countries, that still possess a significantly large and unregulated informal economy.