ABSTRACT
This chapter considers the corruptive influence of criminal money with particular reference to the organised crime picture in Scotland. Relevant academic literature is reviewed with attention focusing on the Fiorentini and Peltzman notion that the corruptive effects of organised crime in an economy are to undermine economic performance and constrain the effects of macro-economic policy making. The practical challenges faced in tackling this threat are identified, in particular the limitations placed on the effectiveness of anti-money laundering legislation by the continued adherence to the concept of predicate offence. The extent to which the low incidence of money laundering prosecutions in this area has encouraged some commentators to consider that claims about the degree of financial sophistication of organised crime are overblown, is noted. With this sceptical backdrop the Scottish experience is considered in some detail, in particular the extent to which the supply processes and money management processes utilised by organised crime groups represent an efficient and resilient mechanism to enable the accumulation and deployment of significant amounts of criminal capital within the legitimate Scottish economy. Some of the practical methods used to achieve this are considered, and case studies are provided which illustrate how the corruptive effects of this money are made manifest.
