Money laundering and the harm from organised crime

We examined the effect of money laundering on the harm associated with organised crime

by using linked data on organised crime groups known to law enforcement from the Australian

Criminal Intelligence Commission and suspicious transactions reported to the Australian

Transaction Reports and Analysis Centre. Involvement in money laundering by an organised

crime group, and an increase in the amount of money laundered, increased the probability

of organised crime and the amount of crime-related harm to the community. The increase in

money laundering preceded the increase in crime-related harm, suggesting the harm was due

to the reinvestment of illicit funds in future criminal enterprises. These findings suggest that

reducing the amount of money laundered by organised crime groups would limit their ability

to reinvest illicit funds in future criminal enterprises.