The process by which the money created by illegal means known as the black money is introduced in the economy as the legal money is the called money laundering. Various techniques are used for this purpose. Money launders get a huge benefit out of it in order to increase their wealth and assets. If we seek to stop criminal activities, we need to focus on money laundering as well because the major goal of money launders is to earn money through illegal activities.
Money laundering backs the uneven development found in society. People who are involved in money laundering get richer and poverty increases due to the fluctuations caused to the economy. The social cost is also there. The rate of crime increases when people see the benefit in criminal activities. Additionally, financial institutions also are damaged by money laundering. Banks and other institutions get trapped by money launders and this can be damaging for the future of such institutions. It has become so much important for all the countries in the world to fight the rate at which money laundering is taking place because money laundering can only have damaging impacts on the economic and social aspects of the society.