October 9 2019
The problem of detecting and tackling money laundering has taxed financial institutions and law enforcement for decades. Trade-based money laundering adds a new dimension of complexity.
Trade-based money laundering (TBML) involves criminals using the trade in goods and services to move illicit money around the world while concealing their activities. Much of the action – and therefore intelligence, evidence and opportunity to intervene – exists within the global trade system rather than the banking system.
The Wolfsberg Group, an association of 13 global banks, found that over 80% of global trade is not financed by banks and is therefore beyond the reach of the existing anti-money laundering (AML) regulatory regime, which relies on financial institutions and other regulated businesses such as solicitors and chartered accountants to identify and report suspicious activity.
