Trade-Based Money Laundering : The Next Frontier in International Money Laundering Enforcement.
- 1st ed.
- 1 online resource (257 pages)
- Wiley and SAS Business Series .
- Wiley and SAS Business Series .
Cover -- Title Page -- Copyright -- Contents -- Foreword -- Preface -- Acknowledgments -- About the Author -- Chapter 1 The Next Frontier -- The Magnitude of the Problem -- How Are We Doing? -- Notes -- Chapter 2 Trade-Based Money Laundering Techniques: Invoice Fraud -- How Does TBML Work? -- Invoice Fraud -- Case Examples: Invoice Fraud and Manipulation -- Case Study 1: False Invoicing Polypropylene Pellets -- Case Study 2: Inflated Invoices and Terror Finance -- Case Study 3: TBML and Export Incentives -- Case Study 4: Vehicles, TBML, and Terror Finance -- Case Study 5: TBML and Iranian Sanctions -- Case Study 6: Teddy Bears Used to Launder Drug Money -- Case Study 7: Brazilian Paralelo -- Case Study 8: South Korean Uses Invoice Fraud to Circumvent Iranian Sanctions -- Cheat Sheet -- Questions to Ask if a Shipment of Goods Looks Suspicious -- Notes -- Chapter 3 Black Market Peso Exchange -- Background of the BMPE -- A Typical BMPE Value Transfer Scheme -- Expansion of the BMPE to Mexico and Venezuela -- The China Connection -- Cheat Sheet -- Notes -- Chapter 4 Hawala: An Alternative Remittance System -- Definition of Hawala -- The Hawala Transaction -- How Do Hawaladars Make a Profit? -- Countervaluation and Trade -- An Abused Financial System -- How to Recognize Hawala -- Countermeasures -- Case Examples: Hawala -- Case 1: Manhattan Foreign Exchange -- Case 2: Shidaal Express -- Case 3: Health-Care Fraudsters Send Funds to Iran -- Case 4: Somali Remittances -- Case 5: Financial Intelligence Instrumental in Hawala Investigation -- Cases 6 and 7: Examples of Hawala and Terror -- Cheat Sheet -- Notes -- Chapter 5 Chinese Flying Money -- An Ancient System -- The Modern Era -- How Does It Work? -- Chinese Presence in Africa -- Case Examples -- Case 1: Fei-Chien and Hawala -- Case 2: Underground Money Shops' Role in Drug Money Laundering. Case 3: Underground Banking and Immigrant Smuggling -- Case 4: Triads Use Underground Finance in Russia's Far East -- Case 5: Used-Tire Trade Masks TBML and Trafficking in Endangered Wildlife -- Case 6: Underground Banking Links Korea and China -- Case 7: Chinese TBML in Poland -- Cheat Sheet -- Notes -- Chapter 6 Misuse of the International Gold Trade -- Why Gold Is so Popular with Money Launderers -- Gold Has Been a Haven of Wealth Since Antiquity -- Gold Is a Readily Acceptable Medium of Exchange Anywhere in the World -- In Times of Uncertainty and Civil Strife, Gold Is Often More Reliable Than National Currencies -- Gold Prices Are Fixed Daily in Markets Worldwide, and Gold's Value Is Relatively Constant Over Time -- The Weight and Quality of Gold Can Be Assured -- Gold Offers Easy Anonymity -- Gold Is Generally Immune to Asset Freezes -- There Is a Tremendous Demand for Gold in Various Cultures around the World -- How Is Gold Manipulated to Launder Money and Transfer Value? -- Depending on the Need, Gold Can Be Altered in Form -- Gold Brokers Can "Layer" Transactions That Further Confuse the Paper Trail -- Gold Is Susceptible to Double Invoicing, False Shipments, and Other Fraudulent Schemes -- Gold Is Easily Smuggled -- Gold Is Often the Commodity of Choice in Underground Financial Systems -- Possible Questions for Gold Dealers -- Case Examples -- Case Study 1: The Magharian Brothers -- Case Study 2: Illegal Gold Mining and Tax Fraud in South Africa -- Case Study 3: Gold Smuggling into Colombia -- Case Study 4: Operation Meltdown -- Case Study 5: Fake Gold Sales -- Case Study 6: Cash-for-Gold-for-Drugs -- Examples of Gold and Terrorism Financing -- Cheat Sheet -- Notes -- Chapter 7 Commercial TBML -- Trade Diversion -- Example 1: Illegally Diverted Cancer Drug -- Example 2: HIV Drugs Destined for Africa Diverted to Europe -- Trade Misinvoicing. Transfer Pricing -- Cheat Sheet -- Notes -- Chapter 8 More Schemes and Facilitators -- Barter Trade -- Service-Based Laundering -- Free Trade Zones -- The Afghan Transit Trade -- Latin America's Tri-Border Area -- Carousel Fraud -- Case Studies -- Case 1: Customs Fraud in an FTZ -- Case 2: Smuggling via an FTZ -- Case 3: Afghan Transit Trade Scheme -- Case 4: TBML in the TBA -- Case 5: Carousel Fraud -- Notes -- Chapter 9 Monitoring Trade -- Steps in the International Trade Process -- Information Sources -- What about Weight Analysis? -- Pioneering Analysis in TBML -- Trade Transparency Units (TTUs) -- The Application of Big Data and Analytics -- Case Example: Operation Deluge -- Notes -- Chapter 10 Red-Flag Indicators -- Possible Red-Flag Indicators of TBML -- Prudent Steps -- Guidance -- Notes -- Chapter 11 Conclusions and Recommendations -- Get Serious about TBML -- Define the Magnitude of the Problem -- Focus from the Top -- A FATF Recommendation -- Curtail the Commercial Misuse of Trade -- Enhance Wire Transfer Reporting -- TBML Analytics -- Expand the International TTU Network -- Reempower Treasury Enforcement -- The Misuse of Trade Is a Law Enforcement Issue-Not Just a Customs Issue -- National Task Forces on Underground Finance -- Notes -- Appendix A Money-Laundering Primer -- Financial Intelligence -- Currency Transaction Reports -- Report of Foreign Bank and Financial Accounts (FBAR) -- Form 8300 (Cash over 10,000 Received in Trade or Business) -- Suspicious Activity Reports -- How Is Financial Intelligence Used? -- Availability of Financial Intelligence -- Legislation -- Investigating Money Laundering -- Money-Laundering Methodologies -- Notes -- Appendix B Original Trade Transparency Unit (TTU) Proposal -- May 2003 Proposal: Trade Transparency Units -- Summary Proposal -- Defining the Problem -- Investigating Trade-Based Money Laundering. Conclusion -- Glossary -- Index -- EULA.