Illegal capital flight is a major concern in the financial world. Please provide a markdown-formatted answer that includes: a definition of illegal capital flight, three consequences, and two preventive measures against it, each point separated by a newline and bullet points.
user
- **Definition of Illegal Capital Flight**: Illegal capital flight refers to the unauthorized transfer of funds from one country to another, often to evade taxes, exchange controls, or other regulatory measures.
- **Consequences of Illegal Capital Flight**:
  - **Economic Instability**: Large outflows of capital can lead to economic instability, decreasing the country's ability to invest in public services and infrastructure.
  - **Decline in Public Revenue**: The loss of capital can result in reduced tax revenues, thereby limiting the government's capacity to fund essential services and social programs.
  - **Increased Poverty and Inequality**: Capital flight can exacerbate poverty and inequality, as the wealth that could have been used for development is instead held in foreign accounts.
- **Preventive Measures Against Illegal Capital Flight**:
  - **Strengthen Regulatory Frameworks**: Implementing and enforcing stricter regulations and transparency requirements can help prevent illegal capital flight.
  - **International Cooperation**: Enhanced cooperation between countries, including sharing of financial information and joint enforcement actions, can significantly reduce the opportunities for illegal capital flight.
assistant