Globalisation and Money Laundering

Globalisation refers to economic, social and cultural integration across the world. This process enables countries to be more interconnected with each other. However, globalisation may also lead to an increase in financial crimes such as money laundering.

Money laundering is a process that enables money obtained from illegal activities to appear legally by concealing its source. This process affects many financial institutions and countries around the world. Therefore, it can be said that there is a link between globalisation and money laundering.

Globalisation has many factors that may lead to an increase in financial crimes. In particular, the removal of borders between countries, easier money transfers and less supervision of financial institutions create a favourable environment for money laundering. Therefore, the link between globalisation and money laundering is an issue that those who fight against financial crimes should work on.

Many regulations and laws are implemented at the international level to combat money laundering. However, the implementation of these regulations can be difficult due to the challenges caused by globalisation. Therefore, financial institutions should try to prevent money laundering by using smarter and more effective supervisory systems together with international cooperation and technological developments.

In conclusion, it is clear that there is a link between globalisation and money laundering. However, this problem should be tackled through international co-operation and effective supervisory systems. In this way, it will be possible to prevent financial crimes and benefit from the positive effects of globalisation.

In a globalising world, the inter-country dimension of economic relations and financial services facilitates the laundering of these gains by persons who obtain their gains illegally. These persons can easily transfer their revenues obtained from criminal acts such as drug trafficking, terrorism, smuggling of historical artefacts, arms smuggling, etc. between countries through banks and other financial institutions and can present their revenues as legally earned. Concealment of money laundering resources at international level is easier than concealment within national borders. For these reasons, country risk is of great importance and strict monitoring of transactions between countries is even more important.