MONEY LAUNDERING AS A THREAT TO NATIONAL ECONOMIC SECURITY: MECHANISMS, RISKS, AND COUNTERMEASURES

Abstract. Money laundering poses a serious threat to the economic security of states by undermining the stability of the financial system, distorting market competition, and facilitating the infiltration of criminal capital into the legal economy. This article examines the mechanisms of money laundering, analyses its impact on macroeconomic indicators and investment climate, and evaluates modern methods of counteraction. Particular attention is paid to the integration of legal, financial, and technological instruments aimed at increasing the transparency of financial flows and strengthening national economic security.

Keywords: money laundering, economic security, financial system, anti-money laundering, FATF, financial monitoring, economic crime, risk assessment.

Money laundering is one of the most dangerous economic crimes of the modern era. It allows criminal organisations to legalise proceeds obtained through illegal activities and integrate them into the legitimate financial system. In the context of globalisation and the rapid development of digital financial technologies, money laundering schemes are becoming increasingly complex and transnational. This creates new challenges for national economic security, as the penetration of criminal capital can destabilise banking systems, distort competition, and reduce the effectiveness of state economic policy. The purpose of this article is to analyse money laundering as a threat to economic security and to consider contemporary approaches to its prevention.

Traditionally, the money laundering process is divided into three main stages: placement, layering, and integration. At the placement stage, illicit funds are introduced into the financial system, often through cash deposits, shell companies, or alternative remittance systems. The layering stage involves a series of complex financial transactions designed to obscure the origin of the funds. Finally, at the integration stage, the “cleaned” money is returned to the legal economy in the form of investments, real estate purchases, or luxury goods.

Modern technologies have significantly expanded the range of money laundering tools. Cryptocurrencies, online banking, prepaid cards, and trade-based money laundering schemes allow criminals to move funds across borders with minimal risk of detection. These new mechanisms require constant updating of monitoring systems and regulatory frameworks.

Money laundering negatively affects several key components of economic security. First, it undermines the stability of the financial system by increasing the risk of bank failures and reducing public confidence in financial institutions. Second, it distorts market competition, as companies financed by illicit funds gain unfair advantages over honest market participants. Third, large-scale money laundering leads to capital flight, reduced tax revenues, and weakened state capacity to finance social and economic programmes.

Empirical studies show that countries with high levels of money laundering demonstrate lower GDP growth rates, higher inflation volatility, and greater vulnerability to financial crises. Furthermore, the infiltration of criminal capital into strategic sectors (energy, real estate, defence) can pose threats to national security beyond purely economic dimensions.

The main international body setting standards in the field of anti-money laundering is the Financial Action Task Force (FATF). Its recommendations form the basis of national legislation in most countries. Key elements of the anti-money laundering system include customer due diligence (CDD), beneficial ownership transparency, suspicious transaction reporting, and asset recovery mechanisms.

At the national level, effective countermeasures require a combination of legal, institutional, and technological measures. These include strengthening the powers of financial intelligence units, introducing risk-based supervision, developing artificial intelligence tools for transaction monitoring, and enhancing international cooperation in information exchange. Special attention is given to the regulation of virtual assets and the prevention of trade-based money laundering.

Money laundering represents a systemic threat to national economic security, affecting financial stability, fair competition, and state fiscal capacity. Effective counteraction requires continuous improvement of legal frameworks, adoption of advanced technologies, and active participation in international cooperation. Only a comprehensive approach combining prevention, detection, and asset recovery can minimise the negative impact of money laundering on the economy and strengthen national economic security.