CORRUPTION AND MONEY LAUNDERING - BASIC COMPONENTS OF ECONOMIC AND FINANCIAL CRIME

Ioan Feher () and Sorin Nicolae Borlea ()
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Ioan Feher: Doctoral School of Economic Sciences, Faculty of Economic Sciences, University of Oradea, Oradea, Romania
Sorin Nicolae Borlea: Faculty of Economic Sciences, University of Oradea, Oradea, Romania; Faculty of Economics, Computer Science and Engineering, Western University Vasile Goldis, Arad, Romania; European Research Institute, Babes-Bolyai University Cluj-Napoca, Romania

Annals of Faculty of Economics, 2021, vol. 30, issue 2, 219-228

Abstract: Economic and financial crime is based on three main pillars, namely the underground economy, corruption and money laundering. Corruption seen as a central element of the phenomenon called economic and financial crime is likely to seriously distort the health of the economic environment in a state, altering democratic governance and the rule of law, in fact a real threat to economic development on the principles of market economy. In the following we will refer to theoretical approaches of the literature on the phenomenon of corruption, revealing a possible form of quantification, respectively how it affects the economic environment and the social implications associated with the manifestations of this phenomenon. We aim to perform a theoretical analysis of the corruption term, and then develop the study with the analysis of real implications in society. The research in question is intended to be a basis for understanding the phenomenon in correlation with the complexity of social implications, in order to subsequently propose concrete solutions to combat it, aiming to limit it and its adverse effects on the economy and society. The phenomenon of money laundering can be considered a reaction of the private environment to the fiscal strategy of the state. In this paper we have analyzed this phenomenon to reveal the methods and means used by different people to mask certain amounts of money of dubious origin, in order to reintegrate financial flows into legal economic circuits. The use of the methodology for investigating the specialized literature, followed by the analysis and synthesis of data, allowed us to identify the main implications of corruption in the economic and social ecosystem of the state, respectively the structuring of money laundering techniques and methods.

Keywords: economic-financial crime; underground economy; corruption; tax evasion; money laundering (search for similar items in EconPapers)
JEL-codes: H26 (search for similar items in EconPapers)
Date: 2021
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