Which accurately describes the social and economic impacts of money laundering?
A.
Money laundering impacts the financial sector, which is critical for economic growth.
B.
Foreign investors are often attracted to jurisdictions with significant money laundering activity as the same conditions favour legitimate economic activity.
C.
Money launderers generally remit any tax revenue that would be due in the jurisdictions in which they operate via front businesses.
D.
Increased money laundering generally results in greater economic stability as profits are reinvested in the jurisdiction.
Money laundering has a significant negative impact on the financial sector by undermining the integrity of financial markets. It distorts asset and commodity prices and leads to the misallocation of resources, which can dampen economic growth. The process also erodes public trust in the financial system and can deter foreign investment.
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