The Impact of Criminal Revenue Legalization on Economic Security

Abstract

The article is devoted to the study of the impact of money laundering on the level of economic security of the state. The influence of legalization processes on the level of the shadow economy, foreign exchange, and monetary policy is analyzed. It has been established that corruption is one of the main sources of criminal income. The banking system also suffers losses from money laundering. The impact of illegal cash flows has a twofold effect: on the one hand, confidence in banking institutions is undermined, and on the other hand, regulatory mechanisms in the banking sector are violated. It is worth pointing out that it is incorrect to limit ourselves to disclosing only the consequences of money laundering on the level of economic security. It is necessary to highlight the factors that cause the spread of legalization processes. Corruption is one such factor. Consequently, effective counteraction to the process of shadowing the country's economy and transforming it into a legal one will guarantee the economic security of Ukraine, its independence, true sovereignty, progressive socio-economic development, and contribute to the development of domestic entrepreneurship. The legalization of proceeds from crime is a significant threat to the development of the financial sector of the economy, and, consequently, a threat to the economic security of the state. In addition to the negative moral impact, legalization contributes to the spread of shadow economic processes, reduces the revenue side of the budget, affects the value of the national currency, and reduces the efficiency of legal business.