Behind Closed Doors: Exploring the Price Dynamics in the Illicit Market of Money Laundering as a Service in the United States

• In Event: Insights into Money Laundering: Financial Facilitators, Intelligence Sharing and Pricing Dynamics

Abstract

The fight against money laundering has motivated the establishment of a far-reaching regime worldwide. Despite the debate on its effectiveness, there is a dearth of empirical evidence on the pricing of money laundering services. To address this knowledge gap, this study examines the pricing of professional money laundering services in the United States using 114 criminal cases from 2005 to 2023. The results show a median price of 9%. There are significant price variations across different types of criminal activities, with cybercrime being the most expensive (31%), followed by fraud (10%), and drug trafficking (8%). Notably, median commission fees for money laundering services decreased from 11% to 6% between 2008 and 2021. Implications of the findings for both research and policy are discussed

Author

• Mirko Nazzari, University of Sassari