Results and Analysis
Descriptive Results
Table 3 provides information on the results of numerical features for
money laundering transactions. The average amount of money transferred
was $159,000—about $76,000, or 50% of total laundered transactions,
made up most of the transfers. The highest amount laundered was $10
million. The average initial balance before the transaction was
$875,000, while the average new balance after the transaction was
$895,000. Note also that the maximum initial balance before the
transfer and the new balance after the transfer was $38 million. The
average initial balance of the recipient before the transaction was
$978,000, while the average new balance after the transaction was
higher at $1.1 million. Once again, it is worth noting that the maximum
initial balance and the new balance of the recipient after the transfer
was over $40 million. These findings suggest that money laundering is a
significant problem, with large sums of money being transferred
illegally 11,40.
The findings of this study have implications for both the government and
the public. First, the findings indicate that much illegal activity is
not being detected or stopped 40. Second, large
amounts of money are not being taxed, which means the government is
losing a lot of revenue 53. Third, the findings prove
that an underground economy operates outside the legal system53,54. A large underground economy can have several
negative consequences, such as making it more difficult for law-abiding
businesses to compete and increase the chances of crime and corruption55. Regulators need to take action to address the
problem of the underground economy or risk people being doubtful of the
government’s ability to regulate the financial system.
Table 3: Summary Statistics