The relative effectiveness of law enforcement policies aimed at reducing illegal trade: Evidence from laboratory markets.

ABSTRACT: Despite recent emphasis and implementation of national and international anti-money laundering policies, illegal product markets, and their associated illicit profit remain a global problem. In addition to law enforcement aimed at reducing money-laundering, enforcement also takes place during (1) the production (e.g. crop eradication) and (2) sale (e.g. seizure of products during transportation that interrupts buyer and seller transactions) of the illegal product. Since funds for enforcement come from limited budgets, understanding where in this production-trade-laundering cycle law enforcement is most impactful becomes a global question. Using laboratory experimental markets and a seizure rate of 20%, we find that law enforcement focused on seizing laundered profits does little to reduce

SUBMITTER: Jones Ritten C 

PROVIDER: S-EPMC8562810 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature