CPEC: a route for outflow of illegal wealth from Pakistan Wahaj Ahmed Khan Karachi University Business School, University of Karachi, Karachi, Pakistan Syed Tehseen Jawaid Applied Economics Research Center, University of Karachi, Karachi, Pakistan, and Danish Ahmed Siddiqui Karachi University Business School, University of Karachi, Karachi, Pakistan Abstract Purpose – This study examines the new venue of moving illegal wealth from Pakistan under the umbrella of China–Pakistan Economic Corridor (CPEC). The study first discussed the features of CPEC in short and how it may bring stability and a new phase of development in the region and also in Pakistan. The review of related literature has suggested that previous studies are more focused on the advantages of CPEC and are almost neglecting the cons of the said project. Later, the research puts light on the problem of money laundering from Pakistan through CPEC and related trade transactions; Walker’s Gravity model has been used to calculate the attractiveness of money laundering. It has highlighted that China’s attractiveness for moving illegal wealth from Pakistan is increased in recent years; the risk of an increase in the amount of money laundered is also analyzed through the Fan Chart technique. Attributes which are making China more attractive for Pakistani wrongdoers are also discussed. The study aims to conclude that if the problem of money laundering will be addressed properly, the CPEC will play a vital role in bringing stability in Pakistan. Design/methodology/approach – This study uses a descriptive and quantitative approach. This study uses the Walker’s Gravity Model updated by Unger et al. (2006) to measure money laundering in Pakistan. A newly developed technique for forecasting that is Fan Chart has been used to predict the trend of China’s attractiveness for money laundering as a preferred destination from Pakistan. Findings – The study finds out that China is already increasing its ranking as a favorite destination for money laundering from Pakistan. Fan Chart analysis suggests that the attractiveness score will be increased. Practical implications – The study helps in highlighting the problem of increase in money laundering from Pakistan through China under the umbrella of CPEC. Originality/value – To the best of the authors’ knowledge, there is no study found on the topic of the problem of money laundering linked with CPEC, and this is the first effort to point out the problem. Keywords Money laundering, China Pakistan economic corridor, Fan chart, Illegal wealth, Walker’s Gravity Paper type Research paper Introduction The extended and strong bilateral ties between Pakistan and China had taken a leap forward in 2013 when both countries had made an agreement to connect Pakistan’s port city, Gawadar, with China’s western part of the country. The western region of China is not developed yet, compared to other parts of China, as this region is quite remote from sea connected parts of the country and therefore is unable to cope up and get benefits of China’s rapid growth and development. When the Chinese President, Xi Jinping, visited Islamabad in April 2015, the project of China–Pakistan Economic Corridor (CPEC) was formally launched. In recent years, economic corridors have emerged as an important tool of regional Outflow of illegal wealth Journal of Money Laundering Control © Emerald Publishing Limited 1368-5201 DOI 10.1108/JMLC-06-2020-0065 The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/1368-5201.htm