Dirty Money The European Banking Authority does not have the power to stop a wave of money-laundering across the EU, the regulator's head has said. Jose Manuel Campa told the Financial Times: "There have been cases of money laundering in Europe, yes, in some cases pretty sizeable ones. I'm not saying we have a good system. [But]I don't think the mandate that the EBA has received is the mandate that will solve that problem. It is not a mandate to harmonize [anti-money laundering,] either regulation or practices, across the union. Because to start that process you first need legislation." FT
money laundering would not exist if socialist governments and dictators were not overtaxing the public, while lining their their own pockets.
You might be conflating money laundering with tax evasion. Money laundering is tying to make dirty money (money obtained by illegal means) clean by channeling it through clean channels. By the fact it is obtained illegally, it is not even in the books anywhere for it to be taxed in the first place. Tax evasion is trying to escape paying tax on money (normally obtained legally) by hiding it in tax havens etc. So, money laundering will exist whether there are taxes or not.