The impact of Switzerland's money laundering law on capital flows through abnormal pricing in international trade

Maria E. de Boyrie, Simon J. Pak, John S. Zdanowicz

Research output: Contribution to journalArticlepeer-review

30 Scopus citations

Abstract

The objective of this research is to determine the impact of Switzerland's money laundering law on the movement of money through false invoicing in international trade. This study evaluates every reported import and export transaction between the USA and Switzerland during the period 1995-2000. The study indicates that there were significant changes in the degree of abnormal international trade pricing subsequent to the enactment of Switzerland's antimoney laundering law. The study supports the view that individuals and companies will find substitute techniques and channels to launder money when central banking authorities enact legislation that only focuses on financial institutions.

Original languageEnglish (US)
Pages (from-to)217-230
Number of pages14
JournalApplied Financial Economics
Volume15
Issue number4
DOIs
StatePublished - Feb 15 2005

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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