Squillions: How Money Laundering Won

2 days ago

Cash use has sharply declined globally, especially in the UK where transactions dropped from 58% in 2009 to 9%.
Despite reduced cash usage, the value of banknotes in circulation is rising, with large amounts unaccounted for, suggesting criminal use.
Money laundering is estimated at 2–5% of global GDP, making it comparable to major economies like Germany, yet it remains poorly understood.
Anti-money laundering (AML) efforts focus excessively on regulated financial systems, missing illicit cash flows in trade, luxury goods, and services.
Techniques like trade-based laundering, carousel fraud, and shell companies exploit legal loopholes, with enforcement lagging behind criminal innovation.
AML regulations have created perverse incentives, leading to excessive reporting and debanking, while failing to curb illicit activities effectively.
Recommended solutions include eliminating high-denomination banknotes and redirecting compliance spending to research on illicit financial flows.
Money laundering is widespread in the UK, with many cash-intensive businesses linked to organized crime, yet political will to address it is lacking.

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