- Category: Web Application
- Operating System: Any
Data Gear AML Trade Base
Trade-based money laundering (TBML) is a problem that is increasing as criminal organisations take advantage of transactions that appear to be legal to launder money and fuel terrorism. We will examine some recent research on TBML, the difficulties in preventing this type of money laundering. And some market trends in this two-part series. However, in order to provide context, we must first provide an explanation of what trade-based money laundering is. The process of hiding the proceeds of crime and shifting value (i.e., money) through trade transactions in order to cover up their illegal origins is known as trade-based money laundering. TBML entails the use of the system of international trade for the transfer of value and
Concealment of the true sources of illegal income. Although TBML methods can range in sophistication, they frequently entail misrepresenting the cost, volume, or quality of imports or exports. Common TBML procedures include the following: False reporting on invoices, such as misclassification of commodities and overvaluation or undervaluation of commodities Carousel trades are repeated imports and exports of the same high-value item. commodities that are traded yet do not fit the business. the overvaluation or undervaluation of the products on the bill and other supporting documents. Services or goods are either over- or under-delivered (also, phantom shipments). Shell firms or offshore front firms. invoice settlement is facilitated by third-party mediators. Integrating illegal cash into financial settlements. Misuse of the current commercial network to transfer money to terrorists (sanction evasion/terrorism financing).