Our current political climate continues to highlight the dangers of international money-laundering and its close links to terrorist financing, human trafficking and corruption. Whilst comprehensive strategies have been deployed to tackle the issue, laundering through use of international trade has been notoriously hard to detect and investigate. The convoluted nature of the problem, combined with the universal reliance on trade by legitimate governments and businesses, allows criminals to hide in plain sight and has subsequently earned trade-based money laundering the title of the final frontier of AML (Anti-Money Laundering).
What is trade based money-laundering?
Trade-based money laundering refers to the process whereby criminals move funds overseas and transfer assets (money) internationally to break the financial trail. This turns the criminal funds or profits into ostensibly legitimate assets by abusing and misusing international trade.
There are many ways that criminals launder funds. The first and perhaps most common is the over and