ABSTRACT
One consequence of diluted monetary control is tarnished financial credibility. For countries in transition, for developing and industrialized countries alike, monetary credibility is at stake when crime can have its way in the financial sector. At a time when private sector investment decisions, international lending policies, and official assistance levels can be influenced by the credit-worthiness and perceived credibility of recipients, criminal capital can once again have a poisoning influence on public welfare. Attracting the proceeds of crime may appear harmless, even beneficial in the short run, but eventually decreased financial control will inevitably undercut financial credibility and those benefits will be more than offset by reduced access to legitimate sources of finance. One increasingly prominent criterion for international development assistance is sound macroeconomic management; in this regard, developing countries-as well as the economies in transition-must not fail to take a long-term view of their development priorities and strive to deflect the infusion of criminal proceeds away from their economies.
