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Understanding the Nexus between Corruption and Money laundering

Author

Listed:
  • Khan, Wahaj Ahmed
  • Siddiqui, Danish Ahmed

Abstract

Corruption and money laundering are two interlinked phenomena and possess a global threat to multiple global problems range from economic and social issues to crime and terrorism threats. This study aim determines the beneficiaries and sufferers of the notorious nexus, this will provide an opportunity to researcher and stake holders at international level to reexamined the issue and formulate a better strategy to fight against corruption and money laundering. Data for corruption is taken from Corruption perspective Index (CPI) and for money laundering data is estimated through Walker's Gravity Model, Data has been collected for the from 2018 to 2022 and comparative analysis has been conducted to examine the illegal outflow of funds for the purpose of money laundering from some of the most corrupt countries and the receivers of such wealth are also determined and discussed. The results show that developed countries are the beneficiaries of such flow of funds. Furthermore, the study helps in formulation and implementation of policies which are more focused towards the world centers used for money laundering as well as jurisdictions which are the source of illegal wealth generated from corruption.

Suggested Citation

  • Khan, Wahaj Ahmed & Siddiqui, Danish Ahmed, 2026. "Understanding the Nexus between Corruption and Money laundering," EconStor Preprints 341075, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:341075
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    File URL: https://www.econstor.eu/bitstream/10419/341075/1/Paper2-Corruption-Money-laundering.pdf
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    References listed on IDEAS

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