Economic Research On Anti-Money Laundering

Money laundering has become a big environmental damage which the international society faces since the middle of the 20th century. It endangers state security seriously, and does harm to the global economy. Launching anti-money laundering is an inevitable choice which is adapted to international and domestic conditions. Some countries and international organizations paid special attention to anti-money laundering earlier, and acquired theoretical and practical experience. China has begun its study of anti-money laundering since the mid-90s. The study concentrates mostly on the eyes of the law, but few focuses on the side of economy. This paper attempts to employ the economic theories to analyze anti-money laundering issue.This paper applies many modern economic theories to study money laundering and anti-money laundering from the sides of money launderinger, the government and financial institutes. Firstly, use the demand theory to research various crimes which have demands for money laundering. Founded on the crime economic model, it reveals several factors that influence money launderinger. And applies multiplier model to explain that black money would produce multiplier effect in the process of laundering-reinvestment and seriously destroy the order of the market economy. Secondly, analyze the necessity of the government's participation in anti-money laundering from the aspect of externality. And adopts cost-benefit method to measure the cost and benefit that financial institutes face in the process of anti-money laundering. Finally, to summarize experience of international organizations and America, this paper puts forward some suggestions according to China's current situation, namely perfecting anti-money laundering mechanism, improving the anti-money laundering work of financial institutes and strengthening anti-money laundering international cooperation.