Comparison of Money Laundering in Pakistan with Asian Countries & Their Effect on Economic Growth

Abstract

Purpose- The purpose of this study was to compare the money laundering practices in Pakistan with China & Malaysia and how it affects the nation and the growth of the economy. The basic purpose behind selecting money laundering for the research is that money laundering is a severe crime and misconduct and these days money laundering is immensely in news on the internet and on television that criminals commence to change their dirty money into white money. Methodology- This study is descriptive research and the comparison concerning money laundering in Pakistan and Malaysia and China. This research is based on secondary sources. Description is used to point out money laundering practices and effects with reference to Pakistan. Consequently, the comparison between these countries, the difference and effects on growth of an economy will be identified. The data used in the research is qualitative and quantitative in nature. Findings- Money Laundering is a worldwide problem and attract international involvement. This research study concludes that after the comparison of these 3 countries (China, Malaysia and Pakistan), China has the highest money laundering, Pakistan ranked second and Malaysia ranked third. Some of the money laundering methods between these countries is same. Money laundering also effects on economy by changing exchange rates, decrese in growth rate, change in exports and imports, change in employment and corruption & bribery also effects the economy. Future Implications- This research is significant to the students, potential researchers, government and policy makers. This research can be utilized as a light for them to pay attention to money laundering, because money laundering is a severe crime and it leads the country towards down/slower growth.