Understand TBML mechanisms and global impact. Identify red flags and frameworks and develop skills to detect, investigate, and report suspicious transactions while mitigating risks.

Learning Objectives:

• Understand the concept and mechanisms of Trade-Based Money Laundering (TBML) and its impact on global trade.
• Identify red flags and typologies related to TBML, including over- and under-invoicing, multiple invoicing, and falsely described goods.
• Learn about the regulatory frameworks and international standards for combating TBML.
• Develop skills to detect, investigate, and report suspicious trade transactions linked to money laundering.
• Explore the role of financial institutions and customs authorities in mitigating TBML risks.
• Understand the use of trade finance instruments and their vulnerability to TBML schemes.
• Gain knowledge of recent TBML case studies and enforcement actions to understand evolving risks.

Introduction to TBML:

• Definition of Trade-Based Money Laundering and its role in global financial crime.
• How TBML differs from traditional money laundering methods.

TBML Typologies and Red Flags:

• Common TBML schemes, such as over-invoicing, under-invoicing, and misrepresentation of goods/services.
• Red flags for detecting suspicious trade transactions.

Regulatory Frameworks and International Standards:

• Overview of FATF recommendations and regulatory expectations regarding TBML.
• Understanding key local and international laws to combat TBML.

Role of Financial Institutions:

• How banks and financial institutions can identify and mitigate TBML risks.
• Trade finance instruments (Letters of Credit, Documentary Collections, Guarantees) and their vulnerability to TBML.

Risk-Based Approach to TBML Detection:

• Conducting enhanced due diligence (EDD) for high-risk transactions.
• Practical steps for screening and monitoring trade transactions.

Investigating TBML:

• Investigative techniques and tools for detecting TBML activities.
• Reporting TBML-related suspicious activities to regulators and financial intelligence units (FIUs).

Case Studies and Enforcement Actions:

• Real-world examples of TBML cases and how they were uncovered.
• Lessons learned from enforcement actions against entities involved in TBML.

Best Practices for Combating TBML:

• Developing robust internal controls for trade transactions.
• Implementing comprehensive TBML compliance programs within financial institutions and trading companies.

Duration:

2-3 Days (depending on the depth of the case studies and practical exercises).

Level: Intermediate to Advanced

• Aimed at compliance officers, risk managers, and professionals involved in trade finance and customs.

Prerequisite:

Basic knowledge of AML/CFT principles and trade finance operations.

Category:

• Financial Crime/AML
• Trade Finance/Compliance