TBML techniques are becoming popular as an alternative remittance system that allows to move the proceeds of illegal activities disguised as legitimate trade. Trade provides ample opportunities to earn money over the illegal capital introduced in the business. Certified TBML Expert course offered by Indiaforensic Center of Studies is one of the few courses that address the global issue of the money laundering where international trade is used in favor of the launderers.
Common TBML Techniques
This article quickly takes the inventory of some of the most popular TBML Techniques used across the world to launder the dirty proceeds of the crime or illegal activities.
Over and under-invoicing of goods and services is one of the common TBML techniques which are used since ages in the trade depending on the objective of the laundering party. In some asian countries the goods are never received but the money is sent out.
Single trade gets invoiced at multiple levels or multiple invoicing on single consignment of goods and services is another popular technique. This may be done when the party wants to send out more money against the single shipment received and billed multiple times.
In certain cases it is observed that instead of manipulating the prices, which are comparatively difficult to tamper, launderer plays around with the quantities and weights of the shipments.
Besides these techniques some other popular techniques include the Over and under shipment of goods and services, mis-description of the goods such as raw diamonds become polished diamonds. In certain cases there is mis-declaration of exported goods, when the scrap is exported in the containers bills are created for export of steel or metal. Since there is no global regulator for the trade, there can not be any control over trade based money laundering techniques as the value of trade is determined by the agreement between two parties. Hence trade based money laundering is becoming one of the major challenges for the financial institutions.