How does Money Laundering affect Financial Market?

Question

Accepted Answer

Money laundering can have a negative impact on financial markets by increasing risks and reducing investor confidence.

Money laundering can lead to an increase in financial crime, which can destabilize markets and reduce investor confidence.
It can also lead to reputational damage for financial institutions, which can result in loss of business and revenue.
Money laundering can distort market prices and affect the allocation of resources, leading to inefficiencies in the financial system.
Examples of money laundering affecting financial markets include the 2012 HSBC money laundering scandal and the 2015 FIFA corruption scandal.
Regulators and governments have implemented measures to combat money laundering, such as anti-money laundering laws and regulations, to protect financial markets.

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