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Financial inclusion of the poor and money laundering indicators: empirical evidence for Colombia

Author

Listed:
  • Hernando Bayona-Rodríguez
  • Catherine Rodríguez
  • J. Sebastián Melo

Abstract

Taking advantage of the largest financial inclusion program in Colombia, we estimate how increasing the access to such services for the poor impacts money laundering indicators in the country. We find that eventhough, on average, government’s indicators of money laundering activities in Colombia decreased, complex and heterogeneous impacts across the country and in time are observed. While money laundering indicators decreased in areas with high historic values of this crime, indicators in areas with medium historic levels increased. The evidence suggests that after the bancarization process a fragmentation and expansion of money laundering indicators across municipalities in Colombia took place, diminishing the accuracy of the alerts that the financial institutions provide to the government in order to fight this crime.

Suggested Citation

  • Hernando Bayona-Rodríguez & Catherine Rodríguez & J. Sebastián Melo, 2017. "Financial inclusion of the poor and money laundering indicators: empirical evidence for Colombia," Documentos CEDE 15600, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:015600
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    References listed on IDEAS

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    1. Amedeo Argentiero & Michele Bagella & Francesco Busato, 2008. "Money laundering in a two-sector model: using theory for measurement," European Journal of Law and Economics, Springer, vol. 26(3), pages 341-359, December.
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    5. Marco Arnone & Pier Padoan, 2008. "Anti-money laundering by international institutions: a preliminary assessment," European Journal of Law and Economics, Springer, vol. 26(3), pages 361-386, December.
    6. Hernando Bayona, 2015. "¿Lavado de Activos en Zonas Rurales?: Evidencia Empírica para Colombia," Documentos CEDE 13548, Universidad de los Andes, Facultad de Economía, CEDE.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    money laundering; bancarization; Souspicios Transaction Report; STR; IIF.;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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