We all know that banks deal  BIS Review 78/2009  1  with other people’s money and therefore rely heavily on reputation for integrity. Without the public confidence from the law abiding citizenry it would be difficult for financial institutions to conduct business in the form they do now.
It is also conceivable that money laundering, if perpetrated on a high scale, would complicate the ability of financial institutions to manage their operations and risks. Another consequence of money laundering on a grand scale is that it may erode the effectiveness and management of monetary policy, because of its potential of changing the demand for cash in the economy.