Why Can’t We Stop Money Laundering? With Oliver Bullough - intelligence-squared-u-s-debates Recap

Podcast: intelligence-squared-u-s-debates

Published: 2026-02-01

Duration: 42 minutes

Guests: Oliver Bullough

Summary

Despite extensive legislation and international cooperation, 2-5% of global GDP is still laundered annually. Oliver Bullough reveals the systemic failures and hidden pathways that allow criminals to bypass financial regulations with ease.

What Happened

Investigative journalist Oliver Bullough delves into the persistent issue of money laundering, questioning why it remains rampant despite decades of global efforts to curb it. He points out that while cash transactions have decreased significantly in countries like the UK, the demand for high-denomination bills like the $100 note remains high due to their utility in the criminal economy. The episode explores the history of anti-money laundering legislation, starting with the Bank Secrecy Act of 1970, which introduced measures to limit cash transactions and mandate reporting of suspicious activities by banks.

Bullough highlights the role of international financial hubs, such as the Cayman Islands and Panama, in facilitating money laundering. These jurisdictions offer lax regulations that attract illicit funds, making international efforts to combat money laundering more challenging. The creation of the Financial Action Task Force (FATF) in the late 1980s was a significant step towards global cooperation, yet Bullough argues that the system remains ineffective.

The episode critically examines the effectiveness of the current anti-money laundering system, which costs over $200 billion annually but often fails to prevent illicit activities. Bullough argues that this system not only generates excessive paperwork but also unfairly targets specific groups, such as Muslim charities, while excluding vulnerable populations from the financial system.

Bullough discusses the increasing use of cryptocurrencies, particularly stablecoins, by criminals and rogue regimes to evade sanctions and launder money. He notes that the Trump administration's favorable stance on cryptocurrencies has facilitated this trend, undermining traditional anti-money laundering efforts.

The conversation touches on the unintended consequences of anti-money laundering policies, including their inability to reduce the percentage of global GDP derived from criminal activities, which has remained stable since the 1990s. This stagnation highlights the need for a more effective approach to tackling financial crime.

Finally, Bullough suggests that successful strategies, like the UK's approach to combating carousel fraud, could offer valuable lessons. This comprehensive strategy involved diplomatic, law enforcement, and legislative tools, demonstrating the potential for targeted, multi-faceted approaches to financial crime.

Key Insights

• Despite a significant reduction in cash transactions in countries like the UK, the demand for high-denomination bills such as the $100 note remains high, primarily due to their use in the criminal economy.
• The global anti-money laundering system costs over $200 billion annually, yet it often fails to effectively prevent illicit activities, generating excessive paperwork and targeting specific groups unfairly.
• Cryptocurrencies, particularly stablecoins, are increasingly used by criminals and rogue regimes to evade sanctions and launder money, a trend facilitated by favorable regulatory stances during the Trump administration.
• The percentage of global GDP derived from criminal activities has remained stable since the 1990s, indicating that current anti-money laundering policies have not effectively reduced financial crime.