What are typologies in money laundering?
What are Typologies? In the AML/CFT context, the term “typologies” refers to the various techniques used to launder money or finance terrorism. Those involved in the fight against money laundering or the financing of terrorism rely on the most current information on typologies.
What do trade based money laundering techniques include?
Typical TBML common techniques include: False reporting on invoices, such as commodity misclassification, commodity over- or under-valuation. Repeated importation and exportation of the same high-value commodity, known as carousel transactions. Commodities being traded that do not match the business involved.
How do you identify trade based money laundering?
TBML generally involves giving false information on imports and exports. Most common Trade-Based Money Laundering methods: Over-billing, Under-billing, Multiple billing, Over/under shipping, Quality misrepresentation.
What are the commonly used techniques in TBML?
Commonly used TBML Techniques
- What is TBML? Trade Based Money Laundering (TBML) is a technique of disguising the origin of the money with the help of complex trade transactions.
- Mispricing. Over and under invoicing of goods and services is one of the common TBML techniques.
- Split invoicing.
- Quantity manipulation.
How many types of STRs are there?
On the basis of different repeat units, STRs can be classified into different types. On the one hand, according to the length of the major repeat unit, STRs are classified into mono-, di-, tri-, tetra-, penta-, and hexanucleotide repeats. The total number of each type decreases as the size of the repeat unit increases.
What are the 3 phases of money laundering?
Money laundering is the process of making illegally-gained proceeds (i.e. “dirty money”) appear legal (i.e. “clean”). Typically, it involves three steps: placement, layering and integration.
What is STR and CTR?
In paragraph 6 of our circular dated February 15, 2006, referred to above, banks were advised to initiate urgent steps to ensure electronic filing of cash transaction report (CTR) and Suspicious Transaction Reports (STR) to FIU-IND.
How does trade based money laundering ( tbml ) work?
Trade-based money laundering (TBML) is a complex phenomenon since its constituent elements cut across not only sectoral boundaries but also national borders. The dynamic environment of international trade allows TBML to take multiple forms.
Is there an APG report on money laundering?
The Asia/Pacific Group (APG) Typologies Report on Trade-Based Money Laundering aims to update and extend the FATF study to identify current methods and techniques as well as to consider why so few TBML case investigations or prosecutions have been undertaken since the 2006 report.
How is money laundering used in organised crime?
A key step in money laundering involves combining proceeds of crime with legitimate business monies to obscure the source of funds. Organised crime often purchase high cash flow businesses to facilitate this process. A technique to obscure the identity of the persons controlling funds and exploit relatively low reporting requirements.
How are capital markets used in money laundering?
Capital markets are used to obscure the source of proceeds of crime to purchase negotiable instruments, often exploiting relatively low reporting requirements. A key step in money laundering involves combining proceeds of crime with legitimate business monies to obscure the source of funds.