Why we must combat Money-Laundering?
Posted by Ripon Abu Hasnat on Monday, May 26, 2014 | 0 comments
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.
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