Economic impacts of money laundering and terrorist financing
Many of the existing formal economic analyses of money laundering have sought to quantify the extent of money laundering, rather than qualify its effects on individual economies or groups of economies.
Money laundering:
•
damages the financial-sector institutions that are critical to economic growth;•
reduces productivity in the economy's real sector by diverting resources and encouraging crime and corruption, which slow economic growth;•
distorts the economy's external sector—international trade and capital flows to the detriment of longterm economic development.Effective anti-money-laundering policies reinforce a variety of other good governance policies that help sustain economic development, particularly through the strengthening of the financial sector.
(From summary of ADB Paper, B Bartlett, 2002)
Documents
ADB paper on Economic Impacts of ML - B Bartlett 2002 (24.59 KB)
IMF Impacts of TF on Financial Markets 2005 (358.63 KB) ICCLR Paper 1999 (80.04 KB) Summary of ADB paper on Economic Impacts of ML - B Bartlett 2002 (20.30 KB) World Bank - impacts on development from ML and TF (112.45 KB)