This review paper examines the multifaceted role of creative accounting in facilitating financial crimes and its impact on sustainable development within developing countries. Drawing upon a comprehensive review of existing literature, this study defines creative accounting and financial crimes, sustainable development, and explores how the former, often operating within legal loopholes, can be leveraged for illicit financial activities and for distraction form sustainable development principles. The paper delves into specific techniques employed, such as the manipulation of revenues, expenses, assets, and liabilities, and provides examples from various developing economies. It further investigates the underlying factors contributing to the prevalence of creative accounting in these regions, including weak regulatory frameworks, inadequate corporate governance, and political connections. The objectives and motivations behind such practices, ranging from improving financial ratios to personal gain, are also discussed. This paper emphasizes the connection between creative accounting and “green washing” that causes distortions in sustainable development reports. By synthesizing current research, this paper highlights the profound impact of creative accounting on financial reporting and sustainable reporting quality and decision-making effectiveness and identifies the challenges in detection and prevention. Finally, it underscores the critical role of forensic accounting and propo- 17 Third International Scientific Conference ses implications for policymakers, regulators, and businesses in developing countries, while also suggesting avenues for future research.