Illicit financial flows not limited to crime, corruption, and tax evasion are an increasing concern all over the world. Among the targets in Sustainable Development Goals (SDGs) is stemming the flow of illicit funds. However, there exists no consensus on the accurate definition of illicit financial flows or how to measure them. Some argue for the definition to cover illegal behavior such as tax fraud and evasion as well as legal behavior that reduces tax revenue. To curb illicit financial flows, the use of digital technologies has emerged as one of the preferred methods among other ways such as closing loopholes in tax treaties. This will help countries mobilize funds for efforts including poverty reduction. This project aims to establish how digital taxation has helped countries curb the flow of illicit finance. The existence of vulnerable financial systems contributes to reduced tax revenue leading to constrained social and economic development. Collaboration among the various arms of government is among the research's policy recommendations. The policies should aim at strengthening institutions to enhance rule of law, meeting contractual obligations, and property rights protections in the jurisdictions. The countries should actively seek to strengthen international financial and technical cooperation to combat illicit financial flows (IFFs).