Money Laundering and its Effects on National Economy

The paper has the main objective to evaluate effects of money laundering on national economy. Money laundering or money laundry is a criminal activity, in a large size and group; in a long term and continuously that it goes beyond political limits of the country. The paper overviews money laundering ways and discusses its effects on financial, monetary, real, and public sectors. Results show that corruption as a widespread phenomenon causes to create enormous incomes so that corruption networks can transfer even billion dollars of its proceeds.The importance of money laundering has been emphasized for its major role in organizational crimes too. According to studies, Iran is one of countries that it has no remarkable money laundering, but the US by 18.5% of money laundering has ranked the first in the world. It canbe seen serious consequents of money laundering in monetary, public,and real sectors obviously so that it could lead to the reduction of production and employment, profiting from money laundering, artificial price rise in unreal sector of economy, the reduction of economic growth and welfare, and the economic insecurity and instability.