Innovation a modern model for estimating volume of money laundering

Abstract

Money laundering or dirty money laundering refers to a process which attempts to demonstrate as legal the source of money obtained through illegal or illegitimate activities. Inflation and recession are among unavoidable consequences of money laundering and will eventually lead to spread of poverty in society. Therefore, recent years have witnessed a great tendency towards the assessment of this phenomenon and the application of different methods to estimate its quantity and volume alongside other similar variables in the socio-economic context. The aim of this article is to explain the ways of modeling of economic relations in addition to introducing a new method for assessment of the quantity of dirty money based on mathematical methods, without any particular presumption. This is while other methods, due to their nature, have a variety of different premises and this has indeed created many problems, including the likelihood of having remarkable errors. The present study applies a combination of Bhatta charya method and arithmetic methods which are based on Tikhonov's regularization strategy and inverse problem in order to introduce a new equation for assessment of the quantity of dirty money.

Keywords: Corruption, Poverty, Money Laundering, Tikhonov Regularization Strategy, Inverse Problem