Trade Based Money Laundering

International trade and trade instruments have important features that make them potentially attractive vehicles to launder criminal money. The sheer volume and international nature of trade, frequent use of offshore entities such as Free Trade Zones and complex trade finance instruments create a cloak of complexity and lack of transparency that the financial criminals seek.

In an intensive one-day session, participants will be immersed in the world of international trade. Four TBML typologies, namely jurisdictions, goods & services, (corporate) vehicles and financial instruments will be analysed for AML Red Flags. Using the highly regarded i-KYC TBML Risk Ladder exercise participants will demonstrate their correct understanding of the relative AML risk issues. The second part of the workshop will address methods to investigate possible TBML situations and participants will be able to apply their learning in a highly intriguing and interactive case study.

Target Audience

This workshop is especially relevant for client facing (Commercial) Bankers, Trade & Commodity Finance specialists, Risk Management analysts, AML Compliance officers and specialised Law Enforcement agencies, such as Financial Intelligence Units.

Objectives

After attending the workshop, a participant can:

• Identify key TBML Red Flags;
• Assess the AML risk profile of proposed trade transactions;
• Identify and mitigate abuse of Free Trade Zones and other offshore structures in trade transactions;
• Spot AML Red Flags in a SWIFT MT 700;
• Advise senior (risk) management regarding TBML matters

Topics:

The following TBML topics are addressed in the workshop:

• Basic principles and techniques;
• Typologies and AML red flags;
• Investigation tools, such as trade data analysis;
• Practical examples, such as the Black-Market Peso Exchange scheme;
• SWIFT MT700 messaging and red flags

Training Methodology

The workshop is structured as a full day event for a group of between 15 and 20 participants. The facilitators apply proven adult learning techniques to engage the participants in an interactive manner.  In addition to topic specific PowerPoint supported presentations, the sessions will include group assignments and case studies to involve the participants to:

• Act as a team and know when to escalate issues;
• Be creative in addressing realistic TBML situations.