[slv77]

Money is a call option on the labor of its citizens. When money accumulates to people who operate against the best interests of its citizens more and more of a countries labor and future is traded for less societal value. There exists some tipping point where no societal value is created and money exists just to drain the vitality of its citizens. In other words, no matter how hard you work things only get worse.

A great article on this dynamics that is worth a read (https://www.propublica.org/article/china-cartels-xizhi-li-mo...)

[AnthonyMouse]

This doesn't really have anything to do with "money laundering". For example, you get the same set of problems if the money is accumulating to monopolies or industries with artificial scarcity as a result of regulatory capture even though the law doesn't require them to "launder" the money they're accumulating.

Meanwhile in the case of classical criminal enterprises, the laws against money laundering don't actually work because in practice there are ten thousand ways to exchange value other than with official currency. And then the systems to prevent "money laundering" cause more problems for honest people who get trapped up in them out of ignorance, or become victims of corrupt government officials who use financial surveillance systems for oppression, whereas professional criminal organizations just restructure their activities to bypass the rules.

[slv77]

All of the other items you mentioned are things that society attempts to regulate against as well. And while there are an infinite number of ways to exchange value it stays between those involved. If the drug dealer is happy to trade heroin for house painting the damage is self limiting.

Once it’s converted to money it’s everyone’s problem. I can’t avoid my mortgage interest helping supporting the dealer who is supplying the addicts who are stealing my stuff. The harder I work, the worse it gets.

The controls may not be effective but I think they are necessary. I wouldn’t want to live in most countries where money laundering dominates financial activity.