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:: Volume 5, Issue 16 (9-2021) ::
3 2021, 5(16): 5-45 Back to browse issues page
What and why money laundering and its economic effects on the monetary and financial system
Abstract:   (1227 Views)
Money laundering is the laundering and legalization of proceeds of crime. Today, money laundering has grown so much due to the dramatic growth of crime and wrongdoing worldwide that it has become one of the acute problems of the global economy and has threatened the growth and development of the global economy.
Money laundering has many negative effects and consequences in various economic and social fields. Effects and consequences such as the spread of corruption and bribery in the community, weakening the private sector, ‌ Decreased confidence in financial markets, reduced government revenue, strengthening the resources and financial network of criminals. The negative consequences of this ominous phenomenon have caused the sovereignty of countries - along with international authorities - to try to combat it and by passing the necessary laws and regulations and implementing them, prevent the occurrence of this crime in financial institutions or if Occurrence, identify violators and report to judicial authorities.
In a dynamic economic system, about 90 to 97 percent of the government's annual budget resources consist of various taxes; Therefore, the higher the share of the informal sector and underground activities in a country's economy, the more the government is deprived of achieving its real share of revenues. Money laundering causes criminal activity to continue, and as a result, the revenue that the government owed from the equivalent of healthy economic activity is reduced through tax evasion. As the country's tax revenues decline, the government's financial capacity to invest in the development of welfare and infrastructure facilities will decline, eventually leading to an increase in the poverty line and a reduction in the employment rate.
Money laundering also affects developing countries through their trade and foreign capital flows. One of the most important problems known to developing countries is the flight of capital through domestic financial institutions or cross-border and cross-border financial institutions that extend to major monetary centers such as New York, London and Tokyo; In contrast, there is little evidence of capital flight as a result of anti-money laundering policies.
Keywords: Money Laundering, Money Laundering, Corruption, Financial System, Monetary System, Court of Audit
Full-Text [PDF 445 kb]   (461 Downloads)    
Type of Study: Research | Subject: Special
Received: 2021/01/31 | Accepted: 2021/10/8 | Published: 2021/10/8
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What and why money laundering and its economic effects on the monetary and financial system. 3. 2021; 5 (16) :5-45
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Volume 5, Issue 16 (9-2021) Back to browse issues page
دانش حقوق و مالیه Knowledge of Law and Finance
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