Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/201913
Authors: 
Barone, Raffaella
Masciandaro, Donato
Schneider, Friedrich
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper 7687
Abstract: 
This paper is the first to analyse the three-way relationship among money laundering, anti-money-laundering efforts and corruption. On the one hand, if we assume that the goal of criminals involved in corruption is to minimize the probability of being detected, then corruption represents a demand for money laundering (trigger effect), while money laundering can serve as an effective way to clean the revenue from corruption for re-investment (multiplier effect). On the other hand, criminals can try to maximize the likelihood that anti-money-laundering activities will be ineffective. Corruption can be an effective device for maximizing this likelihood, as organized crime may corrupt financial institutions – both regulators and regulated firms – in order to prevent crime detection (accelerator effect). The paper proposes a novel theoretical framework for these interconnections, which is then used to simulate the three effects in 101 countries for the period 1990 to 2040.
Subjects: 
money laundering
corruption
calibration
JEL: 
D73
K14
K20
K42
Document Type: 
Working Paper

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