When money laundering leaves a stain on the economy

SINGAPORE’S operation to round up accused members of the “Fujian Family” organised crime ring has seen more than S$2.8 billion of assets seized so far – an eye-popping sum.

But that is small change compared with the dirty money sloshing through the global economy. Widely cited International Monetary Fund (IMF) estimates put laundered capital at between 2 per cent and 5 per cent of global gross domestic product (GDP) – or as much as US$2 trillion a year – today.

But these inflows are no bonanza for the countries where the funds wash up.