Globalization and Money Laundering

• Author: George Dorel Popa
• Position: Senior Lecturer, PhD, Ovidius University of Constanta; Romania
• Pages: 202-205

European Integration - Realities and Perspectives

2012

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Globalization and Money Laundering

George Dorel Popa

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Abstract: Twentieth century has been c haracterized by many str uctural changes on the planetary level. The

changes were caused by social revolutions, the communist bloc collapse, huge technological advances, not

least the significant increase of the international trade volume. The second part of the century brought the

globalization as a major feature of our world. Globalization has manifested first in the Economical field and

then gradually in other areas of the social life. This phenomenon brought undeniable b enefits and a number of

risks and negative eff ects for t he countries of the world. The biggest threat in this respect is the extent of

transnational organized crime. The originality of this paper is consisting in understanding of money

laundering using the factors that define the formation and development of this crime, as well the favor factors.

The added value of the paper comes from interdisciplinary presentation of this crime. This paper highlights

the conditions and factors that cause s erious consequences in this respect. Studying this crime and its features

could be a key for solving many problems in the area of Economical crimes. This paper could contribute to

the work of police officers, prosecutors or judges on daily b ases fight against crime and i ts social

consequences.

Keywords: globalization; money laundering; criminality; organized crime

We all have noted t he proliferation of organized crime activity and accelerated growth of organized

crime. These phenomena occur as a result of the "erasing” of the borders between the states of the

world. Organized crime groups operate both on the nationally and internationally level. Among the

most common offenses, today we meet the weapon traffic, drugs traffic, human trafficking, trafficking

in luxury cars and not least the money laundering offenses. After December 1989, crime in Romania

has grown and increased significantly the proceeds of these illegal activities.

There were massive embezzlement of state property assets and funds by embezzlement, theft and

deception. Privatization of state assets after 1989 was marked by acts of corruption and deliberate

undervaluation of privatized assets. All these funds from illegal activities required recycling

operations, ‘the laundering process’ was necessary to give an apparent legality for the money. Fight

against this scourge was a permanent priority for Romania authorities. In this respect, the Romanian

authorities have adopted a successive series of laws and regulations and have created several

institutions. Romania joined several international agreements in an effort to prevent and combat

organized crime is ready to continue the fight against the money laundering phenomenon.

Globalization from the perspective of economical integration and financial crisis might be the general

terms used to describe the worldwide situation. The actual globalization brought a plenty of benefits,

has increased international trade and cultural exchanges, removing political and economic obstacles.

Increasing interdependence in international relations, besides positive aspects undoubtedly brought

some negative aspects related to economy and security and public order.

Globalization has led to a border removal, which favored the cross-border organized crime. Today,

organized crime, in various forms (trafficking of weapons, human beings, drugs, illegal immigration,

money laundering) and terrorism are global threats and the actual economic and financial crisis tends

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Senior Lecturer, PhD, Ovidius University of Constanta; Romania, 1 Aleea Universitatii, Constanta, Romania, Tel.: +40241-

511000/326 Fax: +40241-543045, Corresponding author: popageorgedrd@yahoo.com.