Consequences Of Money Laundering Training Ppt

Slide 1

This slide discusses the impact of money laundering across the globe on economic, business, and social sectors. 

Slide 2

This slide talks about the economic consequences of money laundering. Money launderers like to operate in emerging economies since these nations' governments are preoccupied in managing growing industries, businesses.

Instructor’s Notes: Ultimately, foreign investments and enterprises become extremely cautious and eventually decide against opening up operations in these economies. Building a business-friendly atmosphere is difficult once money launderers have taken over an economy.

Slide 3

This slide highlights the negative effects of money laundering on an economy. Money laundering can adversely hit growth rates, money demand, tax revenues, income distribution, and financial institutions of an economy.

Instructor’s Notes: 

• Growth Rates: The price instability due to black money in the financial system affects a country's credibility internationally; businessmen find it challenging to invest in such countries because they consider it risky. Investment rates won't rise if legal funds fear from entering a country, thereby adversely impacting long-term sustainable growth
• Tax Revenues: Tax revenues account for the most significant share in public revenue. If this income is low, there is a greater chance that public revenues may fall short of public expenditure, which could result in budget deficits. Governments can’t tax black money income; this lowers tax revenue 
• Income Distribution: The circulation of black money in the legitimate financial system creates income disparity. This difference in income distribution and enrichment of certain people and groups can also cause social degeneration. Ultimately, crime rates are likely to rise 
• Financial Institutions: Abrupt and unexpected changes can occur in the assets & liabilities of financial institutions that get tangled in money laundering, creating a risk for the institutions. The news of money laundering in such financial institutions damages public perception of the institution

Slide 4

This slide discusses the impact of money laundering on businesses. The growth of the legitimate private sector is hindered by money laundering. Money launderers can sell their goods at lower prices since they operate in many business environments.

Instructor’s Notes: Criminals may also buy previously profitable companies and turn these into partners in crime to launder their money. Due to this, the productivity of these companies declines, which, on a larger scale, lowers the productivity of the economy.

Slide 5

This slide talks about the social impact of money laundering. Money laundering encourages crime and corruption, weakens democracy, and compromises the integrity of the society.