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Money Laundering: Some Facts

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  • Friedrich Schneider
  • Ursula Windischbauer

Abstract

The term "Money Laundering" originates from the US describing the Mafia's attempt to "launder" illegal money via cash-intensive washing salons, which where controlled by company acquisitions or business formations. Estimated two to five per cent of the global gross domestic product stems from illicit sources. A great deal of the money derives from drug-dealing, with a total revenue of 810 Billion USD in 2003. In 2005 the Austrian Police secured drugs worth 49266800 Euro (drug seizures in terms of street prices), in total 25.892 persons were charged for violation of the Austrian Narcotics Act. Most of all illegal transactions are processed by cash since there is the smallest risk to leave one's mark; nevertheless there exists an obvious tendency to misuse the internet in order to undertake illicit transactions in form of Online- Banking, Cyber money and Electronic Purse.

Suggested Citation

  • Friedrich Schneider & Ursula Windischbauer, 2010. "Money Laundering: Some Facts," Economics of Security Working Paper Series 25, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diweos:diweos25
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    References listed on IDEAS

    as
    1. Ms. Esther C Suss & Mr. Oral Williams & Mr. Chandima Mendis, 2002. "Caribbean offshore Financial Centers: Past, Present, and Possibilities for the Future," IMF Working Papers 2002/088, International Monetary Fund.
    2. Peter J. Quirk, 1996. "Macroeconomic Implications of Money Laundering," IMF Working Papers 1996/066, International Monetary Fund.
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    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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