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The question of who decides then on what satisfies the definition and how should it be interpreted (or the conflict rule) is separate (at least for analytical purposes). Will there be a central authority and/or a court or not?
No. this is a descriptive, analytic, policy concept -- not trying to make a new legally binding definition but to point to a problem that can be commonly understood - dirty 
crossing borders. Role of financial centres in 
&
in enabling crime and corruption elsewhere.
Don't think we are in the area of adding rules/definitions of IFF into treaties. IFF potentially useful concept for assessing/estimating damage to countries (eg lost revenues, poor/misaligned investments, corrosion of LE/public bodies), and so helping design and enforcement.
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