The US State Department's International Narcotics Control Strategy Report, refers to TBML (trade-based money laundering
), the process by which criminals use a legitimate trade to disguise their criminal proceeds from their unscrupulous sources.
It also took note of the findings of the Global Financial Integrity that ranked the Philippines eighth in the world with regard to illicit outflows primarily due to abusive trade mis-invoicing, a form of trade-based money laundering
He said the institute has also initiated other key programmes like International Compliance Association (ICA) Specialist Certificate in Trade-Based Money Laundering
and CBB rulebook mandatory programmes such as Series 79.
Also; it makes the country vulnerable to trade-based money laundering
A trade-based money laundering
attempt worth over INR5.5bn was brought to light, which allegedly used the banking channels of nine major national and international banks.
Raymond Baker, president of Global Financial Integrity, a Washington-based transparency and good governance advocacy organization, said a collective international response is needed to combat "this shadow financial system comprised of anonymous shell companies, tax haven secrecy, and trade-based money laundering
techniques," which he says, "siphons roughly a trillion dollars out of developing and emerging economies each year, decimates government revenues, facilitates corruption, and propels transnational crime."
"The hot topic, at least in my world right now, is trade-based money laundering
The network moved illegal drugs from South America to Europe and the Middle East via West Africa and laundered hundreds of millions of dollars monthly through accounts held at LCB, as well as through trade-based money laundering
involving consumer goods throughout the world, including through used car dealerships in the U.S.
"The proceeds are typically moved by cross-border cash smuggling, trade-based money laundering
, bank-wire transfer and the abuse of the Money of Value Transfer Services."
Among the topics discussed by the 17 included papers are: organized crime in countries of transition; representing migrants and organized crime in the Greek press over the past two decades; European lessons from the Bulgarian Serious Organized Crime Threat Assessment; the profile of a sample of criminal organization acting in Spain during the last decade; deceptive practices in banking; financial crimes and the global financial crisis; trade-based money laundering
; civil forfeiture of criminal assets in Ireland; the illicit enrichment policy in Romania; Serbian anti-corruption policy; corruption, Turkey, and EU accession; and governance of illegal transports of e-waste.
Recently, the Financial Action Task Force (FATF) missed an opportunity to address trade-based money laundering
(TBML) in its International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation, known as the Forty Recommendations.
"This network moves illegal drugs from South America to Europe and the Middle East via West Africa and launders hundreds of millions of dollars monthly through accounts held at LCB, as well as through trade-based money laundering
involving consumer goods throughout the world, including through used car dealerships in the United States", satement said.