Global effects of financial crimes
We can define financial crimes as criminal activities based on the misuse or abuse of financial systems. With the development of technology, financial crimes have become a major problem in the global world and the revenues obtained from these crimes correspond to a very large proportion of the global GDP.
This article discusses the dimensions of the financial crime economy around the world.
Money Laundering
According to estimates by the United Nations Office on Drugs and Crime, between $2.22 trillion and $5.54 trillion were laundered in 2024 (Rolfe, 2024). Additionally, it is estimated that approximately $22.2 billion worth of money was laundered globally through cryptocurrencies in 2023.
Terrorism Financing
In 2023, it is estimated that 11.5 billion dollars worth of terrorism financing activities were carried out worldwide (Verafin, 2024).
Fraud
According to the 2024 Global Financial Crime Report, approximately $500 billion worth of fraud was committed worldwide in 2023 (Verafin, 2024). Additionally, tax evasion associated with money laundering activities costs governments an estimated $600 billion annually internationally.
Bribery and Corruption
Globally, it is estimated that corruption activities through bribery etc. amount to 3.6 trillion dollars each year (Filipenco, D., 2024).
Tax Evasion
According to the Tax Justice Network’s 2024 report, countries lose $492 billion in taxes annually due to global tax abuse (Tax Justice Network, 2024).
Selected References
Filipenco, D. Corruption and its impact on foreign aid effectiveness (E.T. 05 December 2024).
Rolfe, A. The global impact of money laundering in 2024, (E.T. 05 December 2024).
Tax Justice Network, The State of Tax Justice 2024 (E.T. 9Aralık 2024).
Verafin, N. Nine Red Flags on Terrorist Financing from FinCEN’s New Advisory, (E.T. 9Aralık 2024).