Macroeconomic Implications of Money Laundering

IMF Working Papers, June 1, 1996

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Macroeconomic Implications of Money Laundering

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Bibliographic details

• Authors: Peter J. Quirk
• Published: June 1, 1996
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451962123.001

Overview and scope

• Reviews analytical, empirical, and policy issues related to the macroeconomic implications of money laundering.
• Focus areas:
  • Measurement approaches for money laundering given its unobservable nature.
  • Cross-section econometric estimates of displacement of monetary behavior in industrial countries attributed to money laundering.
  • Examination of channels by which money laundering influences macroeconomic performance, including an econometric estimate of effects on GDP growth rates.
  • Macropolicy implications in exchange controls, prudential banking supervision, tax evasion, statistical reporting, and legislation.

Measurement and empirical approach

• Addresses how money laundering can be measured despite being unobservable.
• Reports cross-section econometric estimates attributing displacement of monetary behavior in industrial countries to money laundering.
• Provides an econometric estimate of money laundering’s effects on GDP growth rates.

Channels linking money laundering to macroeconomic performance

• Considers multiple potential channels through which money laundering affects macroeconomic outcomes, including:
  • Monetary behavior and currency/transactions turnover.
  • Financial activity and banking transactions.
  • Tax evasion and effects on revenue administration.
  • Market distortions (insider trading, market exchange, derivatives transaction).

Policy implications and recommendations

• Discusses macropolicy implications in key areas:
  • Exchange controls.
  • Prudential banking supervision.
  • Tax evasion and revenue administration.
  • Statistical reporting.
  • Legislation on criminal offenses and anti-money laundering measures.

Empirical findings and technical scope

• Paper length: 42 pages.
• Series and identification:
  • Series: Working Paper No. 1996/066
  • Issue: 066
  • Volume: 1996
  • Stock No: WPIEA0661996
• Standard identifiers:
  • DOI: https://doi.org/10.5089/9781451962123.001
  • ISBN: 9781451962123
  • ISSN: 1018-5941

Metadata and subjects

• Author: Peter J. Quirk
• Publication date: June 1, 1996
• Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, Currencies, Money, Money laundering, Revenue administration, Tax evasion
• Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), banking transaction, crime variable, criminal offense, Currencies, currency transaction, derivatives transaction, Europe, financial activity, GDP deflator, insider trading, market, market exchange, market forces, Money laundering, proceeds, right, Tax evasion, transaction, transactions turnover, WP

IMF Working Paper No. 1996/066 — Peter J. Quirk, "Macroeconomic Implications of Money Laundering", June 1, 1996.