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Money Laundering as a Crime in the Financial Sector: A New Approach to Quantitative Assessment, with an Application to Italy

Research output: Contribution to journalArticlepeer-review

Abstract

This study provides an answer to the question of how much cash deposited via a financial institution can be traced back to criminal activities, by developing a new approach to measure money laundering and proposing an application to Italy. We define a model of cash in-flows on current accounts considering, besides “dirty money” to be laundered, also the legal motivations to deposit cash and the role of the shadow economy. We find that the average amount of cash laundered in Italy is around 6% of GDP. These findings are coherent with estimates of the nonobserved economy obtained in previous studies.
Original languageEnglish
Pages (from-to)1555-1590
Number of pages36
JournalJournal of Money, Credit and Banking
Volume46
Issue number8
DOIs
Publication statusPublished - 2014

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 16 - Peace, Justice and Strong Institutions
    SDG 16 Peace, Justice and Strong Institutions

Keywords

  • banking regulation
  • cash in-flows
  • enterprise syndicate
  • money laundering
  • power syndicate
  • shadow economy

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