

Knowledgebase
As anti-money laundering controls evolve, criminals find new ways to transform the financial proceeds of crime into legitimate funds. One of the most prevalent global money laundering strategies is to exploit the vulnerabilities of cross-border trade via Trade-Based Money Laundering (TBML).
Trade-Based Money Laundering takes advantage of the complexity of trade systems, most prominently in international contexts where the involvement of multiple parties and jurisdictions make AML checks and customer due diligence processes more difficult. TBML primarily involves the import and export of goods and the exploitation of a variety of cross-border trade finance instruments.
The most common TBML methods include:
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:
Examples of trade-based money laundering activities that should raise red flags include:
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