Money has always been one of the commodities that is most mobile and easiest to hide from government authorities. The financial sector is also where globalization has been most dramatic in recent years. Technological developments and financial liberalization have increased the opportunities for illicit financial activities. However, government policymakers have been more concerned with curtailing some illicit financial activities than others. Most attention has focused on preventing money laundering, while the tax evasion and capital flight have received much less attention. The government responses call into question the opinion that globalization is linked to the decline of the regulatory authority of the government. However, the central influences on government responses are liberal ideology, economic concerns of private interests and public authorities, and United States goals. In addition, governments have focused on monitoring and regulating transactions within their borders instead of focusing on regulation at the border. Finally, government responses to the growth of money laundering point indicate that predictions of the demise of the government's regulatory power in this age of financial globalization are exaggerated. Reference notes