The importance of the fight against money laundering in the modern world
Current trends in politics, economics, finance and other spheres of human activity, often associated with the term "globalization," make notable corrections to the definition of security, primarily extending its meaning. As the CFO of FinCor Argentina rightly notes, "for modern society, security is becoming an integral concept, since it covers the most acute processes that affect all people: from the threat of becoming a victim of a terrorist attack to cuts of energy in homes and facilities that can alter the normal rhythm of life. " From this point of view, international crime has been considered by the international community for several decades as one of the global problems, whose solution requires the collective efforts of all states.
It is extremely difficult, if possible, to imagine the real scale of the global financial flows created and operated by organized crime in different countries of the world.
According to the estimates of the International Monetary Fund, the quantities washed average between 2 and 5% of the global gross domestic product (GDP). And the FATF emphasizes that even according to the most optimistic forecasts, such amounts can be approximately equal to the GDP of a country like Spain.
From the point of view of the state and its economy, money laundering can cause damage (if money is invested in the "shadow" economy, exported from the country, affects the distribution of monetary resources) and has temporary positive consequences . As a general rule, many "extraterritorial states" are not interested in the origin of the money invested in the development of their economies and that constitutes a significant part of GDP.
The negative effects of money laundering
However, there are circumstances that suggest that money laundering has potentially devastating consequences for the economy, the political and social spheres.
Among the negative consequences of money laundering are the connection of this process with other negative phenomena: terrorism, illegal distribution of narcotics and weapons, slave trade, illegal emigration. The legalization of money can be both the root cause of these phenomena, increasing their scale and the consequence. In any case, the laundering of criminal profits gives terrorist and criminal groups additional incentives to expand their activities.
No less important are the real economic consequences of laundering. As a result, the integrity of financial markets, including global ones, is undermined. This process was intensified especially due to an increase in the speed of capital movement from one country to another. Sudden and rapid movements of dirty capital can cause bankruptcy of banks and other financial institutions. That is why the problem of money laundering in the modern world is extremely important.