Published on June 2014 | Economics of crime

Money Laundering: A Threat to Sustainable Democracy in Nigeria

Democracy is based on the participation of citizens in creating a structure of governance which can effectively deliver a vision of national unity and commonwealth. Equitable wealth distribution in a democratic system of government often have over-bearing impacts on the socio-economy of the people as well as the political stability, peace and security of a nation. However, a dangerous trend may exist when certain individuals in the society have access to the commonwealth of the people and use same for personal interest by siphoning it into local and foreign accounts out of the reach of the original owners (i.e. the citizens). This paper focuses on the impacts of money laundering on nascent democracies with emphasis on Nigeria. It Xrays the roles that the beneficiaries of these illicit funds play on the economy, society, institutions, security and political structure. Using the existing literature, this paper found out that money laundering, as well as its predicate crimes, has devastating effects on the socio-economic, security and political structure of Nigeria and for democracy to grow and be sustained, the menace of money laundering must be vigorously fought to a standstill. Keywords: Democracy, Money Laundering, Distribution of Wealth