Pablo Slutzky nos presentará su trabajo “Drug Money and Firms: The Unintended Consequences of Anti-Money Laundering Policies” CuerpoEn una nueva edición de nuestros Seminarios de investigación, contaremos con la presencia de Pablo Slutzky vía Webex, presentando su trabajo “Drug Money and Firms: The Unintended Consequences of Anti-Money Laundering Policies”, escrito en co-autoría con Mauricio Villamizar-Villegas (Central Bank of Colombia), and Tomas Williams (Department of Economics, George Washington University). Pablo se desempeña como Assistant Professor de Finanzas para la Smith School of Business - University of Maryland. Obtuvo su PhD in Finance por Columbia University (2017). Asimismo, es MBA por el IAE Business School (2209) y Actuario de la Universidad de Buenos Aires (2008). Sus intereses de investigación incluyen la interacción entre las finanzas corporativas y la regulación y, las dinámicas del ámbito de los negocios en mercados emergentes. Drug Money and Firms: The Unintended Consequences of Anti-Money Laundering Policies Pablo Slutzky (Department of Finance, University of Maryland), Mauricio Villamizar-Villegas (Central Bank of Colombia), and Tomas Williams (Department of Economics, George Washington University) We explore the unintended consequences of Anti-money laundering policies. We exploit the implementation of the SARLAFT system in Colombia (Asset Laundering and Terrorist Financing Risk Management System), aimed at controlling the flow of money from illegal activities, such as drug trafficking, into the financial system. We find that deposits located in municipalities with high cocaine activity decline after the implementation of the new system. More importantly, we show that this funding shock has consequences for credit in municipalities with no drug trafficking activities. Banks that source their deposits from areas with high cocaine activity cut lending relative to banks that source their deposits from other areas. We show that this credit shortfall had important negative effects in the real economy. We use a confidential database on bank-firm credit relationships and find that, after the regulation, small firms that rely on credit from affected banks experience a negative shock to investment, sales, size, and profitability. In addition, the credit shortfall caused a reduction of employment growth in small firms. Our results shed light on a novel negative side effect of the fight against money laundering on the real economy.