TRADE-BASED MONEY LAUNDERING : IDENTIFYING RED FLAGS AND APPLYING EFFECTIVE PRACTICES

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Who should attend this course?

This course is an intermediate level course for which the target audience is operational staff and senior/middle managers at financial institutions dealing with international trade finance, Money Laundering Reporting Officers (MLROs), compliance officers, the staff of law enforcement agencies, risk management professionals, policymakers, regulators, consultants and senior practitioners.

Introduction 

For many years, international trade has been reported to be used by criminals to avoid tax obligations and capital export rules, and to hide and transfer illicit funds across borders. Given the growth in international trade in recent years, its vulnerability to different types of crimes (e.g. customs fraud, money laundering, corruption and tax evasion) has also increased, primarily because of its inherent lack of transparency. According to a 2009 report published by the US Department of State – ‘International Narcotics Control Strategy Report Volume II: Money Laundering and Financial Crimes’ – hundreds of billions of US dollars are laundered through international trade every year.

In 2006, Trade Based Money Laundering (AML) was identified by the Financial Action Task Force as one of the three major methods used by criminals to launder money and, since then, there has been a constructive shift in the international approach toward combating TBML. Financial institutions are now required to adopt and implement comprehensive policies and procedures to manage trade finance risks and to identify potential economic sanctions violations. In the 2013 thematic review published by the UK’s Financial Conduct Authority (FCA), it was reported that the majority of banks in the UK have no clear policy or procedures to deal with TBML and they fail to implement adequate controls and systems to identify potentially suspicious transactions, necessitating regulatory action by the FCA.

With an ever-growing array of regulatory and compliance obligations, financial institutions need to clearly understand the key challenges in preventing TBML and to enhance the knowledge and skills of their relevant staff to identify ‘red-flag’ indicators of TBML, enabling them to tailor and apply effective policies and procedures in this regard.

Course objectives

At the end of this course, participants will be able to:

  • Understand the key challenges in detecting TBML and how these challenges can be effectively addressed;
  • Understand the best practices to identify TBML;
  • Identify the ‘red-flag’ indicators in various documents used in trade finance transactions;
  • Use reasonable judgement to detect the existence of money laundering in international trade transactions;
  • Propose sound Anti-Money Laundering (AML) measures that may be integrated into existing ones relating to trade finance; and
  • Implement effective economic sanction programmes to address various challenges.

What will be covered in this course?

How TBML operates and the key documents affected;

  • Domestic and international TBML examples/case studies;
  • Red-flag indicators relating to TBML;
  • Best practices to identify and prevent TBML; and
  • Effective countermeasures.
Duration : ONE Day Course (9:00am-5:00pm)

Speaker       Dr. Ramandeep                           Chhiina

Cost              GBP 1475 +VAT                           Per 20 Delegates 

Level            Intermediate

Venue          Onsite Training

Date             As Agreed

Duration       ONE Day Course 

Timings        9:00am-5:00pm

Course Code FLE 001  

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