Cassandro Mendes and Jailson Oliveira
The purpose of this paper is to develop a theoretical model to study the impact of corruption on money laundering.
Abstract
Purpose
The purpose of this paper is to develop a theoretical model to study the impact of corruption on money laundering.
Design/methodology/approach
The relationship between corruption and money laundering has been modelled by using differential games.
Findings
The authors' model suggests that corruption increases the quantity of dirty money laundered in the formal economy. It was also found that, jointly with the anti‐laundry regulations, the government should create a better salary policy, as a way to control corruption of federal officials.
Originality/value
To best of the authors' knowledge, this is the first theoretical paper that studies the link between money laundering and corruption.