Money Laundering Poses a Risk to Financial Sector Stability
While people enjoy the convenience of a globally connected financial system, criminals exploit this intricate network to move illicit funds across borders, and evade capture. As these criminals protect their ill-gotten wealth derived from tax evasion, corruption, and drug trafficking, financial crimes thrive. Pierre Bardin, Antoine Bouveret, Grace Jackson, Maksym Markevych warn in their IMF article that combatting money laundering is beyond the capacity of any single nation - and that countries must innovate together to find a solution. Bank regulators often do not make the best use of limited resources, and divergent approaches hamper effective global collaboration. Ultimately, society pays the cost through an erosion of trust in the integrity of the financial system, often leading taxpayers to subsidize failing banks and limiting customer access to credit.