Why we must combat Money-Laundering?

There are many reasons for what we must combat money laundering. These are:

a. Money-laundering has potentially devastating economic, security and social consequences. Money laundering is a process vital to making crime worthwhile.

b. Money-laundering diminishes government tax revenue and therefore indirectly harms honest taxpayers.

c. Money-laundering distorts asset and commodity prices and leads to misallocation of resources.

d. The social and political costs of laundered money are also serious as laundered money may be used to corrupt national institutions. Bribing of officials and governments undermines the moral fabric in society, and by weakening collective ethical standards, corrupt our democratic institutions.

e. It is generally recognized that effective efforts to combat money laundering cannot be carried out without the co-operation of financial institutions, their supervisory authorities and the law enforcement agencies.

f. Among its other negative socioeconomic effects, money laundering transfers economic power from the market, government, and citizens to criminals. Furthermore, the sheer magnitude of the economic power that accrues to criminals from money laundering has a corrupting effect on all elements of society.