The Analysis Of Money Laundering And Anti-money Laundering In Our Country

Money laundering is a word of foreign origin. Briefly speaking, money laundering is the process to hide the illicit money and legalize it by transferring it through financial institutions such as banks or by other special manners. With the development of economic globalization, money laundering has also expanded globally on a larger scale. The increasingly growing insanity of money laundering has badly threatened the national security and economic development of ever country. Estimated by International Monetary Fund (IMF), the total amount of global illegal money laundering equals to 2% of world GDP per year. The legalized illicit earnings per year reach 1 to2 billion US dollars in some developing countries, and even up to100 billion US dollars in some developed countries. While in some world financial centers, 300 to 500 billion US dollars illicit money is legalized per year. From international experience, the main activities of money laundering and Anti-money laundering have processed in the financial field .Consequently , almost every country considers financial institutions 'Anti-money laundering as a core activity, and the cooperation of Anti-money laundering among international society is mainly in the financial field as well.In China, crimes in money laundering commenced in 1980s, and have developed to be a serious issue lately. As estimated, 200 billion RMB has flown abroad through money laundering per year, which has caused nearly 100 billion RMB national tax revenue losses per year. Capital flees and money laundering related to corruption is the unique characteristic of money laundering crimes in China . As estimated, in China, the accumulative total amount of capital flees was over 53 billion US dollars from 1997 tol999, 17.7 billion US dollars on average per year .The total amount of capital flees has been up to 2062. 11 billion US dollars till 2004 in China, most of which were due to money laundering. Reducing national tax revenue, effecting foreign exchange reserve, capital flees will threaten China' s financial stabilization, and will even become the source of the financial crises .This paper attempts to analysis in economics, using game theory and micro—economics theory of the cost-benefit analysis of money laundering and anti-money laundering act. At last, giving some advises about China's anti-money laundering procedures on the basis of international experience.