Money laundering through public contracts and fiscal stability

Money laundering through public contracts constitutes one of the most complex forms of financial crime, significantly affecting fiscal stability and institutional integrity. This study examines the intersection between criminal law and public finance within the context of public procurement, identifying the mechanisms through which illicit funds are integrated into the formal economy. Although existing literature primarily addresses money laundering from a banking and financial perspective, this article focuses on public contracts as an alternative and comparatively underexplored channel. The methodology includes an analysis of the international and European legal frameworks, as well as a comparative examination of institutional practices. The findings indicate that the lack of transparency in public procurement procedures, the use of offshore companies, and weaknesses in the verification of beneficial ownership are among the principal factors facilitating money laundering activities. This phenomenon has direct consequences for fiscal stability, as it distorts market competition and reduces public budget revenues.