MONEY LAUNDERING, PARALLEL MONEY AND CORRUPTIVE TRANSITION

Abstract

"Money laundering" is not a new phenomenon, as it exists in parallel with the existence of so-called black market, or underground economy. In the national economy, the gray market relies on smuggled goods and illegal trade payments as a result of disturbances of supply and demand of goods, services, money and foreign exchange. There are very significant illegal payments, which were acquired on irregular way, that do not operate under official monetary flows and that are not recorded in the accounts at banks. However, in a country which cannot meet the demand of the retail sector to foreign currencies, citizens are automatically directed to an alternative market, which is relatively well supplied with foreign currencies. This market, however, does not have permission to work from the official institutions. However, the banks engaged in financial transactions fall into the trap of deficit in funds for payment and, therefore, resort to speculative methods in order to obtain foreign currency, which, as a rule, are highly demanded (so-called "foreign famine"). Companies often resort thereto and purchase foreign currency through a dealer on the black market or through banks through the agio.