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I think the essence of *illicit* is that the flows are hidden or fraudulently disguised to avoid law enforcement /tax authorities detecting the nature of the flow (or its ownership etc...) & mounting administrative or legal challenge.
No one suggests "US/EU law prevails, period". The "normative" definition is so vague its no definition at all i.e. financial flows that are 'immoral'.... raises the Q of whose morality? who judges & how? (and why we would bundle these Qs of morality in with illegal $ laundering?)
We have to accept what is deemed illegal/illicit under a country's own rules, eg where there are capital controls most or even all external flows might be banned. But that country cannot insist that their rule is the "norm", or vice versa for a country that allows all flows.
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