Category: Trade Based Finance

Trade-based financial crime accounts for 31% of global fraud costs but just 0.1% of media coverage

Fraud, Trade Based Finance
Trade-based financial crime (TBFC) is responsible for an estimated $1.6 trillion in losses each year, nearly a third of the total cost of global fraud, which stands at $5.127 trillion annually. Yet, despite its massive economic impact, TBFC is alarmingly underreported in the media, making up just 0.1% of all fraud-related mentions in articles over the last year. Meanwhile, other smaller-scale types of fraud like Authorised Push Payment (APP) scams, projected to cost $6.8 billion annually by 2027, receive more media attention. Over the past year, APP scams were mentioned 17,121 times in the media – nearly twice as often…

NEW RESEARCH FROM TI-RUSSIA ACTS AS A REMINDER THAT THE UK NEEDS TO DOUBLE-DOWN ON ITS ROLE AS AN ENABLER OF FINANCIAL CRIME

Money Laundering, Trade Based Finance
Have you ever bought something that’s never arrived, or wasn’t quite what you expected? Frustrating, isn’t it, and maybe far too frequent an occurrence. Now imagine you wanted this to happen, and you intended to spend hundreds of thousands, possibly millions of pounds in the process. Your friends would think you’d gone mad. Yet this is exactly how hundreds of millions of pounds has been moved out of Russia and into the UK in recent years. Here’s how it works. Imagine you’re an organised criminal gang or a senior politician. You’ve managed to generate some income from activity that is…

Middle East & North Africa Trade based financial crime guide

Money Laundering, Trade Based Finance
Today the MENA Chapter of the GCFFC and MENA FCCG launched their jointly developed bilingual Reference Guide for practitioners to assist in improving awareness of trade-based financial crime risks. The guide was simultaneously published as an open source on the GCFFC and MENA FCCG websites and introduced to the market at the London Stock Exchange Group (LSEG) 14th MENA Regulatory Summit 2022 in Abu Dhabi, organized by LSEG under the patronage of the UAE Executive Office of Anti-Money Laundering and Counter Terrorism Finance. TBFC is persistently flagged as one of the most poorly understood risk areas within the anti-money laundering…