Abstract

This paper is a literature review of empirical findings related to: a) the proceeds from transnational organized crime (TOC) worldwide with special focus on several OECD countries, and b) a breakdown of the different types of crime proceeds, including those from financial and tax fraud, and drug-, human-, and arms-trafficking. The paper demonstrates that illegal cross-border flows of global "dirty money" (including tax fraud figures) make up the largest share (66 percent) of all illegal transactions. Moreover, the paper describes the infiltration of TOC proceeds into the "official" economic system and the role of the Hawala banking in this regard. The paper concludes that a detailed analysis of financial proceeds and their sources is needed in order to reduce the basis for TOC operations.

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