This paper looks at money laundering from a macroeconomic and international perspective. it shows that the potentially large amount of money that is being laundered internationally is likely to have implications for both the international allocation of resources and the stability of the international financial system. The paper concludes with the discussion of a proposed that would compel countries to adopt similar roles aimed at controlling money laundering. The countries that would not abide by these rules would be penalized. This would be an application of a Pigouvian tax aimed at a negative externality. Pigouvian taxes have played an important role within countries.