Company export import invoice laundering money pdf trading

Request Demo Login. Register now. What is Trade-Based Money Laundering? The most common TBML methods include: Over-invoicing: The exporter submits an inflated invoice to the importer, generating a payment that exceeds the value of the shipped goods. Information Sharing: To overcome the difficulties that TBML poses, firms should look beyond their own AML provisions and seek coordination with other organizations, law enforcement agencies, and government authorities.

More specifically, banks and financial institutions should, where possible, share their TBML discoveries and analyses because: Information sharing between institutions makes it easier to identify the global criminal infrastructure and address specific instances of TBML.

Law enforcement agencies are incentivized to join an information-sharing network if it is more likely they will be able to catch and stop criminal activity. Government authorities can use information-sharing networks to analyze TBML and better align regulatory focus.

International Guidance: The broader the regulatory perspective on TBML, the more effectively individual firms can work to prevent it. The FATF also provides banks and financial institutions with a list of trade finance AML red flags to consider when managing cross-border transactions, these include: Significant discrepancies between invoices and the description of goods on official documents.

Shipments much larger or smaller than the usual traffic of goods handled by a particular importer or exporter. Shipments routed through a number of countries or multiple unconnected subsidiaries without good reason. Payments methods inconsistent with the level of risk presented by the transaction. Shipments of goods typically considered at high risk of involvement in money laundering.

Shipments of goods into or out of countries deemed to present a high risk of money laundering. Shipments that are paid for in cash. Shipments that are paid for by third parties with no obvious connection to the transaction. Trade-Based Money Laundering Examples Examples of trade-based money laundering activities that should raise red flags include: A letter of credit for a high-value cross-border import is revealed to contain anomalies when examined by the routing bank.

Further investigation by the bank reveals missing and unrecognized documentation with the import agents. The bank rejects the transaction and returns the drawing documents.

The bank cancels the transaction adds the parties to their internal watch list. Several shell companies purchase electronic goods with funds derived from criminal activities — and then sell the goods to buyers in high-risk countries with minimum due diligence.

The proceeds are then directed back to the shell companies. The bank handling the transactions notices a number of red flags, and in particular that the shell companies are registered in countries unrelated to the transactions. Frequently Asked Questions. Introduction to Money Laundering. Money Laundering Investigations. Integration Techniques. Layering Techniques.

Placement Techniques. Offences of Money Laundering. Prevention of Money Laundering. Larry Launder sets up an import company in a foreign country as well as an export company in his country of residence. The export company exports goods to the foreign import company.