Featured Pathways

More pathways

Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

More pathways

Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

Book a demo

Pricing

Ready to get started?

Featured Pathways

More pathways

Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

More pathways

Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

Book a demo

Pricing

Ready to get started?

Book a demo

Pricing

Ready to get started?

Mitigating Trade-Based Money Laundering

Mitigating Trade-Based Money Laundering

Iain Hoggarth

15 years: Risk & compliance

Money laundering and financial crime risk in trade finance is a problem that the industry has struggled to solve. Iain explains the complexity of this issue by explaining what we know, emerging threats and what bank policies exist to address this risk in trade finance.

Money laundering and financial crime risk in trade finance is a problem that the industry has struggled to solve. Iain explains the complexity of this issue by explaining what we know, emerging threats and what bank policies exist to address this risk in trade finance.

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Mitigating Trade-Based Money Laundering

16 mins 58 secs

Overview

This is the procedure whereby corporate identities and sources of funds are masked by criminal organisations to legitimise earnings. It is the responsibility of banks to be able to monitor, flag and handle rule changes, and the obvious signs of risks to tackle this.

Key learning objectives:

  • Define Trade-Based Money Laundering

  • Outline the different bank policies, and other combating factors to mitigate the risk of TBML

  • Understand how TBML is identified, and the coherent flags to help with this.

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Summary

What are some examples of Trade-based Money Laundering?

  • Manipulation of prices to facilitate excesses of cash, or value being transmitted between jurisdictions
  • Manipulation of quantities, or grading of goods

What are the Bank policies to tackle TBML?

  1. Questioning the purpose of facilities - Where this is unclear, this could raise some questions. Also, if there is the involvement of trade facilities lacking commercial justification – this could be a clear sign of some ill intent
  2. Excessively detailed and complex requirements for an otherwise simple trade would trigger a review
  3. Mispricing or significant pricing discrepancies - These discrepancies are recognised through a comparison with actual market prices
  4. Common themes - Some organisations have taken the view that certain goods have been commonly used in known money laundering schemes, and therefore, should go through an enhanced check

Dual use goods also cross over to the military and other dangerous materials. Goods are subject to screening procedures, and banks will maintain a list of items that are known to have potentially hazardous uses, such as certain chemicals like sulphur and fertilisers. Thus enhanced checks are crucial.

What are some red flags that may be picked up on?

  • Sequential numbers on containers
  • Changes to any named parties on transactions
  • Missing/absent documentation
  • Odd and confusing contacts from clients
  • Change of circumstances that appear to have limited commercial gain or make little sense

How can we identify Trade-based money laundering?

  1. Identify checking is key – we must understand parties to a transaction which may include suppliers, shipping agents and any other parties to the chain of sale
  2. Robust procedures to check key documentation – These may include: Invoices, packing lists and bills of lading
  3. A commercial sense-check on trade routes and shipping methods
  4. Review for any sanctioned or blacklisted names
  5. Enhanced checking for red flag issues
  6. Escalation and approval processes must be put in place

How can these risks be combated?

(1). Policy and Controls – This includes:

  • Proper identification and monitoring of risks
  • Effective staff training to equip them with the relevant skills
  • Tailored approaches must be made to specific product and country risks

(2). Data sources and internal risk measurement – This includes:

  • Name screening information
  • Case specific criteria

(3). Connection to the outside world – This includes:

  • Governance needs to be further enhanced
  • Professionals should be trained on the procedures and be aware of what circumstances warrant escalation

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Iain Hoggarth

Iain Hoggarth

Iain has been in the banking industry for about two decades. He has spent a large part of his career in commercial and corporate finance in both the frontline and risk functions. Iain has worked for large banks, small funds and has spent time in consultancy.

There are no available videos from "Iain Hoggarth"