Money laundering as a crime in the financial sector: A new approach to quantitative assessment, with an application to Italy

Gilberto Turati, Guerino Ardizzi, Carmelo Petraglia, Massimiliano Piacenza, Friedrich Schneider

Research output: Contribution to journalArticlepeer-review

16 Citations (Scopus)

Abstract

This study provides an answer to the question of how much cash deposited via a financial institution can be traced back to criminal activities, by developing a new approach to measure money laundering and proposing an application to Italy. We define a model of cash in-flows on current accounts considering, besides "dirty money" to be laundered, also the legal motivations to deposit cash and the role of the shadow economy. We find that the average amount of cash laundered in Italy is around 6% of GDP. These findings are coherent with estimates of the nonobserved economy obtained in previous studies.
Original languageEnglish
Pages (from-to)1555-1590
Number of pages36
JournalJOURNAL OF MONEY, CREDIT, AND BANKING
Volume46
DOIs
Publication statusPublished - 2014

Keywords

  • Banking regulation
  • Money laundering

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