Trade Based Money Laundering

Trade-Based Money Laundering(TBML), in all its diverse forms, is the largest money-laundering methodology across the globe now. It is also the least acknowledged, understood and acted upon laundering methodology.

Inadequate capabilities, skill and resources of banking, customs, tax, and legal authorities to identify and investigate fraudulent transactions are further facilitating TBML.

This course aims to develop a better understanding for the stakeholders on how to identify, mitigate and combat trade base money laundering. The course covers TBML concepts and benefits which can be achieved by implementing customer due diligence such as know your customer procedures and transaction monitoring processes.

In this course, we shall endeavour to describe how illicit financial flows are integrated into the formal financial system in the guise of trade. The course covers in detail the concept of, Its Procedure and Mechanism with case examples. TBML Typologies, Red Flags and Countermeasures are also discussed at length. The role and responsibilities of Financial Action Task Force ( FATF), Policymakers, Law enforcement and bankers, Sanctions imposed by the Office of Foreign asset Control/European Union/United Nations (OFAC/EU/UN) on various entities and effectiveness of all these measures are vividly covered. The course concludes with the. future outlook and preparedness are required on the part of various stakeholders to tackle this growing menace of TBML.

The course is structured in six sections as below:

Section I: Introduction

Subsection 1: About the course

Subsection 2: Brief Objectives

Subsection 3: Relevance

Section II: Illicit Financial Flows

Subsection 1: Stages of Money Laundering

Subsection 2: AML Measures over the years

Subsection 3: Concept of TBML

Subsection 4: Magnitude of the problem

Subsection 5: Emerging Concerns

Section III: Methods of Trade Settlement & Intermediaries

Subsection 1: Open Account Transactions

Subsection 2: Documentary Collections

Subsection 3: Letter of Credit

Subsection 4: Structured Financing Products

Subsection 5: Shell/Front Companies/Intermediaries

Section IV: Typology and Red Flags

Subsection 1: Types of TBML

Subsection 2: Customer Red Flags

Subsection 3: Transaction Red Flags

Subsection 4: Shipment Red Flags

Subsection 5: Payment Red Flags

Section V: Regulatory Framework

Subsection 1: An Overview

Subsection 2: Role of FATF

Subsection 3: OFAC/UN/EU sanctions

Subsection 4: Banker’s Perspective

Section VI: Future Preparedness

Subsection 1: Technology : An enabler or Impediment

Subsection 2: Emerging Trends and Counter Measures

Subsection 3: The way Forward