According to the US Treasury Department, “Trade can be inherently complex and complicated, reflecting the nature of interconnected supply chains stretching around the world,”. The world of trade, especially International trade is indeed vast- which can make it quite hard to keep of sometimes. With shipments passing through multiple countries, with extensive goods on hand, it is very easy for money launderers to take advantage of the situation and carry out their operations in plain sight- using Trade-Based Money Laundering.
Trade-Based Money Laundering is in fact the most common method of Money Laundering in the world. Unfortunately, it is also the least detectable. The presence of legitimate trade from one country to another provides Money Launderers with the perfect cover to transfer illegally obtained money across borders, and convert it to ‘white money’ in the process.
Understanding Trade-Based Money Laundering
Money can be transferred from one country to another. The Trade-Based Money Laundering is a very crucial part to understand. So, how exactly are criminals able to force their way into the intricate system that is International trade, and use it for their own gains? There are a few means by which they can do so-
Manipulation of invoices- Traders may purposely provide wrongly calculated invoices to the buyer. There the Trade-Based Money Laundering comes in existence. For example, an exporter may provide an invoice with a higher payment requested than the actual value of the goods supplied. In this case, the importer transfers excess funds over to legitimize any money obtained in black. Vice versa, the exporter provides a bill that decreases the value of the goods from their actual value, which transfers the excess value to the importer. In some cases, exporters may also ‘mistakenly’ bill the same shipment multiple times. This brings in laundered money from the importer at a fraction of the effort.
Manipulation of the actual goods- Conversely, exporters may also send more or lesser goods than agreed upon instead of changing the invoice. This still transfers over extra value to the importer, who can sell the goods and retain the money. They may also choose to send over fewer goods, which transfers the value of unsent goods to them. The Trade-Based Money Laundering comes in existence in Russia. The quality of the traded goods may also not be up to the expected standard. Overpricing them in this way increases their value.
Analysis
If not inspected properly, these shipments can easily reach their destination without suspicion. The manipulation of official documents to suit the trader’s needs is quite easy, which is why thorough inspection of all documents involved is necessary. An expert usually does this in order to determine if Trade-Based Money Laundering is taking place.
The G7 countries have created The Financial Action Task Force (FATF) to detect and minimize cross-border Money Laundering. This International organization has put together a number of indicators in place that can help banks determine if Trade-Based Money Laundering is taking place under their authority. Banking authorities and other financial institutions who are unwittingly taking part in such activities can put an end to dealing with such firms by keeping these in mind.
How to detect Trade-Based Money Laundering
A few red flags that indicate an exporter may be taking part in Trade-Based Money Laundering are:
If a regular shipment appears to be much smaller or larger in quantity than expected.
If official documents show discrepancies regarding the value and volume of the shipment. This means if they do not match after inspection of the shipment.
When the shipments take long detours or pass through countries that are not related to the nature of the shipment. It may raise suspicion if the goods pass through countries that are at high risk for Trade-Based Money Laundering.
Goods that are transported in large numbers at a time, but cost less individually are considered high-risk. This includes Alcohol, cigarettes, clothes, edible products, etc.
Launderers usually dispose of illegally obtained cash using TBML. It throws up a lot of red flags when traders pay for large shipments with cash.
It may raise some concerns if individuals or companies who do not seem related to the nature of goods in the shipment provide the payment.
A bank can investigate if official documents are being manipulated or fabricated. This includes Letters of Credit and invoices. If they are, the bank cancels the transaction and adds the involved parties to its watch list. The repeated activity of the same nature from these parties is then reported to higher authorities, usually the Financial Action Task Force (FATF).
It is important for private firms and banks who are dealing with high-risk transactions and shipments to analyze the information relayed during the process. Using special information-sharing programs developed by Law enforcement agencies and Government Authorities can help to weed out any suspicious activity. This helps to phase out any chances of TBML occurring.
Trade-Based Money Laundering and Russia
The current political situation promises a high chance of Trade-Based Money Laundering happening to and fro from Russia. The Russian oligarchs have used such methods to help move their wealth across the Russian border in the past. They then use the transferred money to fund the Government’s overseas activities or pour it into real estate and yachts. Lately, this money is being converted into Dollars or Sterling Pounds to protect it from the impending crash of the Ruble.
The implementation of sanctions on Russia, banning them from trade with many countries has put a damper on these activities. However, there is no doubt that Trade-Based Money Laundering with regards to Russia and its allies is set to rise in the future. This is most likely to occur with its strongest allies- North Korea and China. To gain the understanding of AML domain one must opt for and get the understanding of the AML Certification in Russia that is developed.
AML Certification in Russia
Certified Anti-Money Laundering Professional (CAMP) is one of the best international AML certification in Russia. In order to take the course globally, the team of Regtechtimes Academy entered into an agreement to offer the certification program to the global compliance officers. Regtechtimes Academy in association with Riskpro Learning offers the Certified Anti-Money Laundering Professional (CAMP) program to the international community. Regtech Times Academy accreditation is known worldwide. This course was initially started to address the provisions of the Prevention of Money Laundering Act. Certified Anti-Money Laundering Professional is an interesting experience for compliance professionals.
Trade-Based Money laundering in Russia is becoming an ongoing problem. Russia is looking after to put forth a strong AML system. In Russia, the banks and financial institutions should fulfill the due diligence requirement. So it will be very beneficial for doing the CAMP course.
Certification Program in Crypto Currency Laundering
Riskpro Learning offers a short-term online AML Certification course related to cryptocurrency i.e Certification Program in Crypto Currency Laundering. This program is basically designed to understand the term cryptocurrency, what are the challenges faced while laundering money through cryptocurrency. One will also get to know how financial crimes are taking place in cryptocurrency. Cryptocurrencies are making huge inroads in the process, and they are actively traded and mined nowadays. The focus of this course is to make Cryptocurrency concepts accessible to people with little to no knowledge. This course is a video learning course. The aspirants would be able to get them in detail knowledge related to cryptocurrency.
Riskpro Learning also offers multiple short-term online AML Certification courses. One of the courses is Certification in Trade-Based Money Laundering that is related to the Proceeds of crime are laundered through the international trade. This certification explains the different methods of trade and the informal value transfer systems.
Benefits of AML Certification in Russia
Regtech Times Academy has started the Certified Anti-Money Laundering Professional course which is a video-based learning certification in the compliance domain. Certified Anti-Money Laundering Professional is an interesting experience for compliance professionals. The international edition of the Certified Anti-Money Laundering Professional program offers an exhaustive set of resources for the students. During the process of completion of this course, professionals develop an understanding of the wide range of terms associated with financial crimes.
To whom these courses are applicable
The above following courses are applicable to the aspirants who want to get established in the compliance domain, or the person who wants a career option in the AML domain. It will be also helpful for beginners who are keen to understand the Anti-Money laundering measures, terrorist financing, fraud, etc.
Learning Outcome from the course
Certified Anti-Money Laundering Professional will help you to understand the overview of International Laws, Deep knowledge of a Politically exposed person, and understand of Risk-based approach to money laundering, AML/CFT regulations laid down by FATF.
Certification in Crypto Currency will help you to understand the overview of cryptocurrency, how money laundering takes place in cryptocurrency, how to combat the financial crimes that are taking place via cryptocurrencies etc.
The certification in Trade-Based Money Laundering will help you to understand the crimes that are are committed internationally. Different unique methods are explained through thr video learning mode.
Cost of AML Certification in Russia
The professionals are in search of doing something related to the AML certification in Russia. They want to do the different types of global certifications. However, the cost of global certifications plays a major barrier to gaining Certification. There are global courses provided all over the world. One of the most popular courses is Certified Anti-Money Laundering Professional which is offered by Regtech Times Academy and should have global recognition. The cost of this course is $300.00 for an individual to complete this course.
Prep Course for the AML Certification in Russia
In addition to the Certified AML Professional program, Regtechtimes Academy also offers the ACAMS Prep Course for the aspirants looking to take up the CAMS certification from ACAMS, USA. This course is a set of 6 simulated exams which would help the Algerian aspirants to pass their CAMS exams successfully. We offer a very cost-effective model for the CAMS Prep course and accept the payments in local currency.
Conclusion
In conclusion, Trade-Based Money Laundering has been rampant in Russia for years- thanks to the multiple oligarchs who rule hand in hand with the government. The newly imposed sanctions on Russia may have made it seem that TBML may be forced to die down. However, as long as Russia’s long-standing allies continue to do trade with the disgraced country, this may not happen. There is no doubt that shipments between these countries will continue now that Russia’s former partners in trade have imposed bans on it. In fact, chances are that they might increase to be fronts for the laundering of money. Therefore, Trade-Based Money Laundering and Russia has a close connection It will do banks well to keep a closer watch on any trade occurring between these countries in the near future.
