What was the estimated annual cost to the Australian economy from money laundering in 2011?

• A. $1-2 billion
• B. $10-15 billion per annum
• C. $100 billion
• D. $36 billion

Answer: (B)

Understanding the scale of money laundering helps you see how much illicit activity can affect a legitimate economy. In 2011, the best available estimate for Australia put the annual cost at about ten to fifteen billion dollars. This range reflects the hidden and hard-to-measure nature of illicit financial flows, plus the costs associated with enforcement, compliance, and the broader economic effects like tax gaps and reduced investor confidence. The other figures are not aligned with what researchers and government analyses at the time considered credible for Australia. A much lower estimate would understate the size of criminal proceeds that move through the system, while much higher figures exceed what is commonly cited for Australia in that period.