TRADE-BASED MONEY LAUNDERING: THE OVERLOOKED METHOD

On 10 February, KYC 360 carried an article saying that while FATF lists 3 main methods by which criminal organisations and terrorist financiers move money for the purpose of disguising its origins and integrating it into the formal economy, the third of these receives less attention than the others – and the scope for abuse of the international trade system has received relatively little attention.  It then says that recently there has been heightened focus from both governments and regulatory bodies on trade-based money laundering, resulting in enhanced pressure on financial institutions to do more to combat financial crime through the physical trade of goods.  The article goes on to consider 3 common challenges faced by financial institutions when processing trade finance transactions, in the form of 3 case studies.

https://www.riskscreen.com/kyc360/news/tricks-of-the-trade/

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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