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Privatization

The launderer has a large amount of financial assets at his or her’s disposable. Most people that necessitate a launderer’s techniques are willing to take millions in dollars of losses to at least get some of their money back in legitimate forms. The launderer can therefore cripple investors that wish to buy formerly state owned businesses by perpetual outbidding for ownership. The balances that the launderer has often times pale that of a legitimate investor. Meaning, in a collapsed economy there is not going to be many options for local investors of the specific country to advance and buy formerly governmental owned enterprises. This is why after the collapse of the many socialist countries, there was an increase in aggregate laundered investment. The money launderer can use generated foreign funds to buy these enterprises at a discount, and with little legal regulation, due to a country being desperate for investment of any sort.

With the increase of privatization, there is also the issue that the launderer is gaining more private banking opportunities throughout a country also. The environment created for the launderer in these countries is absolute and ideal, investment won’t require exuberant spending and there will be little supervision throughout the financial sector.

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