Poaching, murder, terrorism, and sex trafficking all cause more than just financial harm, although I don’t know what portion of the crime prevented by AML laws is these things. Authoritarian states like the PRC, which has been systematically oppressing Muslims and Tibetans, participate in money laundering, too. Decriminalization of drugs and sex work would reduce the amount of illicit drug and sex trafficking, since legal producers would outcompete the criminal organizations, while growing the economy.
Poaching, murder, terrorism, and sex trafficking all cause more than just financial harm, although I don’t know what portion of the crime prevented by AML laws is these things. Authoritarian states like the PRC, which has been systematically oppressing Muslims and Tibetans, participate in money laundering, too. Decriminalization of drugs and sex work would reduce the amount of illicit drug and sex trafficking, since legal producers would outcompete the criminal organizations, while growing the economy.