Table of Contents

Research Handbook on Money Laundering

Research Handbook on Money Laundering

Elgar original reference

Edited by Brigitte Unger and Daan van der Linde

Although the practice of disguising the illicit origins of money dates back thousands of years, the concept of money laundering as a multidisciplinary topic with social, economic, political and regulatory implications has only gained prominence since the 1980s. This groundbreaking volume offers original, state-of-the-art research on the current money laundering debate and provides insightful predictions and recommendations for future developments in the field.

Chapter 3: The effects of money laundering

Joras Ferwerda

Subjects: economics and finance, economic crime and corruption, law - academic, corruption and economic crime, politics and public policy, terrorism and security


Money laundering is defined as the processing of criminal proceeds to disguise their illegal origin (FATF 1996, p. 1). As disguising is the main goal of this criminal act, a successful money laundering scheme goes completely unnoticed. Not only should the process itself go unnoticed, also afterwards nothing should be visible. Most crimes eventually have a clear effect: A dead body (murder), a missing item (theft) or a counterfeit product, yet money laundering should leave no trace at all. On top of that most crimes have a clear victim, whereas in the case of money laundering it is unclear who the actual victim is. These two aspects combine to make money laundering an invisible crime. One could wonder why we are fighting something which is basically invisible and without a clear victim. John Stuart Mill concluded as for back as 1859 that governments should not forcibly prevent people from engaging in victimless crimes, because it does no harm to others (Mill 1859). In order to justify anti-money laundering policies, we have to identify who is harmed by money laundering and to what extent.

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