Leveraging Anti-money Laundering Measures to Improve Tax Compliance and Help Mobilize Domestic Revenues

Emmanuel Mathias and Adrian Wardzynski

No 2023/083, IMF Working Papers from International Monetary Fund

Abstract: The paper advocates leveraging anti-money laundering (AML) measures to enhance tax compliance, tackle tax crimes, and, in turn, help mobilize domestic revenues. While AML measures have already been deployed to improve tax compliance, including during the European debt crisis, the benefits that such measures could bring to the integrity of the tax system are yet to be fully realized. In recent years, the relevance of AML measures for tax purposes resurfaced in public discourse in light of numerous data leaks that provided ample evidence of the closely intertwined nature of tax crimes and money laundering. There might now be the right political momentum for greater utilization of AML measures given post-pandemic calls for a more progressive tax system, elevated sovereign debt burdens, a challenging global economic outlook, and widespread cost-of-living crisis. In this context, the IMF has stressed the importance of rebuilding fiscal buffers, as countries with more fiscal room are better placed to weather the economic slowdown and protect households and businesses.

Keywords: Tax crimes; Anti-money laundering; Predicate offenses; AML measure; tax purpose; AML enforcement; tax cooperation; tax criminal; Anti-money laundering and combating the financing of terrorism (AML/CFT); Money laundering; Tax return filing compliance; Tax evasion; Global (search for similar items in EconPapers)
Pages: 51
Date: 2023-04-21
New Economics Papers: this item is included in nep-iue
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