The economics of money laundering


  • Patrycja Chodnicka University of Warsaw



money laundering, two-sector equilibrium model, illegal economy


In the paper was taken problem of money laundering in respect of receiving income and incurring expenses. It was looked at economy as whole and individual entities that are households, companies, government and foreign countries which exercising significant influence on particular government decisions. In this purpose was characterized and researched problem of legalizing funds generated by illegal activities by using two - sector equilibrium model which is object of Masciandaro, Bagella, Buscato and Argentiero researches. Model is based on activities first two of four mentioned participants. In this model it was used two sectors of economy: legal and illegal. For better understanding problem, model was adapted to polish economy and verified. As a result were received factors which had deciding influence on quantity of money laundering. Offering services and legalization funds generated by illegal activities has got negative correlation with increasing sanctions which are applying in case of detection and transactional costs. Optimal quantity of money laundering depends on workforce costs and prices both goods becoming form legal and illegal economy. Moreover it was drawn attention to bigger effectiveness of foreign cooperation than implementation of national anti-money laundering policy.


Download data is not yet available.


Argentiero A., Bagella M., Busato F. (2009), Money Laundering in a Microfounded Dynamic Model: Simulations for the U.S. and the EU-15 Economies, ?Review of Law & Economics?, Vol. 5, Iss. 2, Article 4.
Argentiero A., Bagella M., Busato F. (2008), Money laundering in a two sector model: using theory for measurement, ?CEIS Research Paper? 128, Tor Vergata University, CEIS.
Cavalcante Veiga L.H., de Andrade J. P., Rossi de Oliveira A. L. (2006), Money laundering, corruption and growth: an empirical rationale for a global convergence on anti ? money laundering regulation, ?Latin American and Caribbean Law and Economics Association (ALACDE) Annual Papers, Berkley Paper, Berkley Program in Law and Economics?, UC Berkley.
Ferwerda J. (2009) The Economics of Crime and Money Laundering: Does Anti ? Money Laundering Policy Reduce Crime?, Ultrecht School of Economics Tjalling C. Koopmants Research Institute, Duscussion Paper Series 08-35.
Grzywacz J. (2010), Pranie pieniędzy, metody, raje podatkowe, zwalczanie, Szkoła Główna Handlowa w Warszawie ? oficyna wydawnicza, Warszawa.
Holmstrom B., Milgrom P. (1991), Multitask Principal ? Agent Analyses: Incentive Contacts, Asset Ownership, and Job Design, ?Journal of Law, Economics and Organization?, Issue 7.
Lilley P. (2006), Brudne interesy, Helion, Warszawa.
Lippert O., Walker M. (1997), The Underground Economy: Global Evidence of it Size and Impact, Fraser Institute, Vancouver, B.C.
Masciandaro D. (2008), Worldwide anti-money laundering regulation: estimating the costs and benefits, ?Global Business and Economics Review?, 10 (3).
Masciandaro D. (2007), Who pays for banking supervision? Principles and trends ?Journal of Financial Regulation and Compliance?, 3 (3).
Masciandaro D. (2007), Economics of Money Laundering: A primer, Paolo Baffi Centre Bocconi University Working Paper No. 171.
Masciandaro D. (2004), Combating black money: money laundering and terrorism finance, international cooperation and the G8 role, Universita di Lecce Economics Working Paper No. 56/26.
Masciandaro D. (2005), False and Reluctant Friends? National Money Laundering Regulation, International Compliance and Non-Cooperative Countries ?European Journal of Law and Economics?, 20 (1).
Masciandaro D., Takats E., Unger B. (2007)., Black Finance: The Economics of Money Laundering, Edward Elgar Publishing.
Masciandaro D. (1995), Money laundering, Banks and Regulators: An Economic Analysis, Innocenzo Gasparini Institute for Economic Research, Working Paper No. 73.
Masciandaro D. (1998), Money Laundering Regulation: The Micro Economics, ?Journal of Money Laundering Control, Institute of Advanced Legal Studies?,2(2).
Masciandaro D., Filotto U. (2001), Money Laundering Regulation and Bank Compliance Costs. What Do Your Customers Know? Economics and Italian Experience, Journal of Money Laundering Control, Vol. 5, No. 2.
Masciandaro D. (2004), The global financial crime: Terrorism, money laundering and offshore centres, Aldershot, Ashgate.
Ministerstwo Finansów (2009), SPRAWOZDANIE Generalnego Inspektora Informacji Finansowej o realizacji ustawy z dnia 16 listopada 2000 r. o przeciwdziałaniu praniu pieniędzy oraz finansowaniu terroryzmu w roku 2009.
Mitchell D.J. (2002), U.S. Government Agencies Confirm That Low ? Tax Jurisdictions are not Money Laundering Havens, ?Prosperitas?, vol. II, Issue I.
Moneyval (2009), First written progress report submitted to MONEYVAL by CROATIA, Strasbourg.
Moneyval (2010), Montenegro Progress report, Strasbourg.
Moneyval (2010), Georgia Progress report, Strasbourg.
Moneyval (2010), Lithuania Progress report, Strasbourg.
Moneyval (2009), Latvia Progress report, Strasbourg.
Moneyval (2009), The former Yugoslav Republic of Macedonia, Progress report
Moneyval (2009), Written Progress report submitted to MONEYVAL by Moldavia, Strasbourg.
Moneyval (2009), Mutual Evaluation Report Anti ? Money Laundering and Combating the Financing of Terrorism Armenia, Strasbourg.
Moneyval (2009), Romania Progress report, Strasbourg.
Moneyval (2010), Serbia Progress report and written analysis by the Secretariat of Core Recommendations, Strasbourg.
Moneyval (2009), Slovakia Progress report, Strasbourg.
Moneyval (2010), Report on Fourth Assessment Visit Anti ? Money Laundering and Combating the Financing of Terrorism Slovenia, Strasbourg.
Moreira S. T. (2007), A Two-Period Model of Money Laundering and Organized Crime, ?Economics Bulletin?, Vol. 11, No. 3,1-5.
Quirk P. (1997), Money laundering: Muddying in the Macroeconomy, ?Finace&Development?.
Quirk P. (1996), Macroecnomic Implications of Money Laundering, International Monetary Fund, Working Paper 96/66.
Reuter P., Truman E.M. (2004), Chasing Dirty Money: The Fight Against Money Laundering, Institute for International Economics.
Schneider F (2008), Money Laundering and Financial Means of Organized Crime: Some Preliminary Empirical Findings, ?Global Business & Economics Review? No 10(3).
Schneider F. (2010), Turnover of Organized Crime and Money Laundering: Some Preliminary Empirical Findings, ?Public Choice?, Vol. 144, No 3-4.
Takats E. (2007) A Theory of ?Crying Wolf?: The Economics of Money Laundering Enforcement, International Monetary Fund.
Takats E. (2008), Tax Rate Cuts and Tax Compliance ? The Laffer Curve Revisited, IMF Working Papers, International Monetary Fund.
Unger B. (2009), Money Laundering ? A Newly Emerging Topic on the International Agenda, ?Review of Law & Economics?, Vol. 5 : Iss. 2, Article 1.
Unger B. (2007), The Scale and Impact of Money Laundering, Cheltenham, UK ; Northampton, MA : Edward Elgar.
Unger B (2009), Money Laundering ? A Newly Emerging Topic on the International Agenda, ?Review of Law & Economics?, Vol. 5 : Iss. 2, Article 1.
Unger B, Walker J. (2009), Measuring Global Money Laundering ?The Walker Gravity Model?, ?Review of Law & Economics?, Vol. 5 : Iss. 2, Article 2.
Unger B., van Waarden F. (2009), How to Dodge Drowning in Data? Rule- and Risk-Based Anti Money Laundering Policies Compared, ?Review of Law & Economics?, Vol. 5, Iss. 2, Article 7.
Unger B., Rawlings G. (2008), Competing for Criminal Money, ?Global Business and Economis Review?, Volume 10, Issue 3, Special Issue on the Economics of Illegal Financial Markets.
Unger B. (2006), The amounts and effects of money laundering, The Dutch Ministry of Finance Report, Den Haag, Netherlands.
Walker J. (1995), Estimates of the Extent of Money Laundering in and through Australia, Paper Prepared for the Australian Transaction Reports and Analysis Centre, Queanbeyan: John Walker Consulting Services.
Walker J. (1999), How Big is Global Money Laundering?, Journal of Money Laundering Control, Vol. 3, No. 1.
Walker J. (2007), Measuring Global Money Laundering, Paper presented at the conference ?Tackling Money Laundering?, University of Utrecht, Utrecht, Netherlands.
Walker J. (2004), A very temptative exploration of the relationship between shadow economy and the production and transit of illicit drugs, New York: UNODC document.
Walker J. (1998), Modelling Global Money Laundering Flows ? some findings.




How to Cite

Chodnicka, P. (2011). The economics of money laundering. Oeconomia Copernicana, 2(4), 73–95.




Similar Articles

1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.