On 8 November, Global Financial Integrity reported that a recent study of 186 countries found that China was the largest export destination for 33 countries and the largest source of imports for 65 countries. A new report highlights the implications of China’s BRI on trade-based money laundering (TBML) and illicit supply chains.  The report recommendations include that –

  • countries to incorporate free trade zones (FTZ) into their AML regime and that adequate illicit financial flows (IFF) risk assessments are conducted of FTZ, including separate reporting of goods/commodities moving in and out of them;
  • implementing beneficial ownership registries across the financial, transport, and trade system;
  • that aggregated and disaggregated trade records are made available as open-source information or at a nominal cost – improved pathways for the cross-border sharing of trade information on a real-time basis is critical for flagging IFF risks; and
  • that businesses undertake better and more specific, actor-oriented due diligence to understand the issues related to corruption, ethics, and transparency among partners in the supply chain

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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