The potential social and political costs of money laundering, if left unchecked or addressed ineffectively, are significant. Organized crime can infiltrate financial institutions, gain control of large sectors of the economy through investments, or bribe public officials and governments. The economic and political influence of criminal organizations can erode the social fabric, weaken collective ethical standards, and ultimately undermine democratic institutions.

In countries transitioning to democratic systems, such criminal influence can destabilize the transition process. Fundamentally, money laundering is inextricably linked to the criminal activity that generates it, enabling those activities to persist and flourish.