What is Trade Based Money Laundering?
Trade based money laundering is called next frontier in the international money laundering. It is an alternative remittance that allows illegal organisations the opportunity to earn, move and store proceeds disguised as legitimate trade. Value can be moved through this process by false-invoicing, over-invoicing and under-invoicing commodities that are imported or exported around the world. This method is extensively used by underground banking, unlicensed money service businesses, hawalas, etc., have all utilized trade to move value as settlement of a debt arising from remittances overseas.
Category: General Knowledge