Author(s):
1. Blanaru Constantin-Adrian,

Abstract:
The relations between financial institutions on the international level allow the law breakers to transfer, almost on the spot, huge amounts of money from a corner of the Earth to another. Unfortunately, present capital markets allow the reinvestment of the money obtained from illicit business (weapons, drugs, prostitution, evasion, etc.) in investments that look legal precisely due to the multitude of financial investments that occurred and are poorly regulated and difficult to control. These huge amounts that entered the market often influenced the exchange rate or the interests in an economy Even if it is not a positive and merritory element, we have to highlight another major flaw of Central and Eastern European economies – corruption. Each state “benefits” from corrupted officials who, in exchange for material or pecuniary advantages, would offer support to the actors of underground economy. Unfortunately, in the former communist countries, the virus of corruption reached alarming thresholds from the bottom of hierarchy, in the small time crooks at customs of banks to the top, in high officials. Not after 21 years of “freedom”, countries such as Romania, Bulgaria or even more developed ones such as Hungary, Czech Republic, etc. did not completely eradicate corruption which can be seen at the highest levels. Many of the ones that deal with money laundering were sympathized by political circles especially due to their financial capacities to sponsor election campaigns and contribute financially to the accounts of politicians. If in other parts of the civilized world, they would be frowned upon and would be less visible, here, those involved in money laundering due to various activities which are more ore less legal or controlled, are a part of the category of the privileged and remain untouched by the observance of state regulations.

Key words:
money laudering, corruption, transfers, banks, illegal activities

Thematic field:
Economic development and the Environment

Date of abstract submission:
26.06.2012.

Number of visits:
459

Conference:
REDETE 2012

Applied paper from author