On 9 December, FATF, in collaboration with Egmont Group, has released a new report to help the public and private sector with the challenges of detecting trade-based money laundering. The report takes stock of current TBML risks and uses case studies to explain the ways in which criminals exploit trade transactions to move money, rather than goods. The report says countries should use national risk assessments and other risk-focused material to raise awareness with the public and private sector entities involved in international trade – including FIU, customs agencies, law enforcement, financial institutions, transport companies, importers and exporters, accountants and auditors. Key recommendations include improving information-sharing of financial and trade data, and improving cooperation between authorities and private sector, including through public-private partnerships; and a key finding of the report is that greater awareness about all aspects of the trade process, including how different financing processes are managed, would likely increase opportunities to detect and successfully disrupt TBML.
[As an aside, I have always favoured the use of the more encompassing term “trade-based financial crime” when considering risks and undertaking risk assessment – as there is more to trade-based crime than just money laundering. However, at least TBML is a recognised label.]
www.fatf-gafi.org/media/fatf/content/Trade-Based-Money-Laundering-Trends-and-Developments.pdf
Factsheet for the private sector –
www.fatf-gafi.org/media/fatf/documents/Handout-Trade-Based-Money-Laundering-Private-Sector.pdf
Factsheet for the public sector –
www.fatf-gafi.org/media/fatf/documents/Handout-Trade-Based-Money-Laundering-Public-Sector.pdf
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