Money Laundering

This chapter outlines the money laundering and terrorism finance (ML-TF) challenge and present feasible solutions, based on the available estimates of their costs and benefits. The chapter describes the potential relevance of the economics of money laundering (section 1), but at the some time it acknowledges the absence of robust data estimates in the existing literature (section 2). It is claimed that exists an impressive inverse relationship between the international care on money laundering and terrorism finance – particularly after 9/11 - and the robustness of the existing empirical analysis on the phenomena. Therefore the paper outlines the possible solutions – focused on the regulation design - only in qualitative terms (section 3).