Corruption and Money Laundering: The Role of the Private Sector

The fight against corruption and money laundering is a universal phenomenon. Corruption has a negative impact on the economy and, in the long run, on economic prosperity. Corruption, as part of economic crime, can flourish in circumstances where it is given incentives and where countervailing powers are weak. ‘Corruption is, at most, a second‐best response to a government failure. At worst, it is a highly distortionary method of public choice.’ Corruption can be defined as the abuse of public office for private gain and is a distortion of the government system.