Trade Based Money Laundering - Basic Techniques, Part 1

[@FinCrimeAgent]

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[@Sarumanthewhite888]

This video is really useful, especially for the CGSS exam, luckily I passed after watching your TBML videos.

[@FinCrimeAgent]

Hey Paul, that’s a great news 👍🏻 I’m really happy that my video helped you with your exam 🙂 congrats!

[@Shajar-oe7su]

Your videos are really appreciable

[@FinCrimeAgent]

Much appreciated 👍🏻 Thank you!

[@aliadnan4589]

Its a blessing to watch your videos pertaining to AML & related issues coz they have really been helpful for a Novice like me. I strongly believe your videos will definitely bolster me to clear CAMS effectively.

[@FinCrimeAgent]

Thank you for such a positive feedback! I am really happy that my videos are supporting you during your learning and through your career in the industry. The new season with more weekly videos will start on Monday 12th. Thank you for watching 👍🏻

[@aliadnan4589]

@@FinCrimeAgent I look forward to watching more informative videos in near future..... 😊

[@alinanaeem8159]

Highly useful content!

[@FinCrimeAgent]

Glad to hear that! Thank you for your comment Alina

[@jochuMira]

Thanks Agent

[@FinCrimeAgent]

Thank you for watching Jithu, I’m glad it was useful 👍🏻 You can call me Marco 🙂

[@hemanthkumarthokala8340]

Excellent sir

[@FinCrimeAgent]

Thank you for your comment, I’m pleased it was clearly explained 👍🏻

[@salonishah892]

Thank you sir

[@FinCrimeAgent]

Thanks for watching! I’m glad the information provided in this video are useful. Are there any other aspects of TBML you would like me to cover in the future?

[@adawong1537]

In this situation where does the cash go? I understand everything else. Thank you for a great video

[@FinCrimeAgent]

Hi and thanks for commenting on the video 👍🏻 Could you please confirm to which part you are referring?

[@adawong1537]

@@FinCrimeAgent thank you for replying! So for an example if a drug dealer in New York sells drugs and obtains $100,000 in cash. Does the dealer take that cash and bring it to an exporter so the exporter can used TBML to send the value to another country? And if so, what does the exporter do with the cash that he relieved from the drug dealer?

[@FinCrimeAgent]

Hi again! Great question, and I can see where the confusion might come in. When a drug dealer obtains a significant amount of cash, like the $100,000 in your example, they typically need to find ways to make that money appear legitimate. One method is through trade-based money laundering (TBML). The dealer would collaborate with a peso broker or a similar entity, who acts as an intermediary. The dealer gives the cash to the broker, who then uses his network of businesses, like exporters or other commercial entities, to "purchase" goods. These goods are then usually sold in another country, turning the illicit cash into legitimate revenue. The proceeds from these sales are then returned to the dealer, but now they're in a form that's much harder for authorities to trace back to illegal activities (e.g. Physical Assets, Business Revenues, Cryptocurrencies etc). I also have another video expanding more on this TBML. See "Trade Based Money Laundering - Complex Technique, Part 2" kzbin.info/www/bejne/eGXKl2OeZ9SDbKM So, to answer your question, the exporter doesn't usually directly deal with the drug dealer's cash. Instead, they deal with the peso broker or intermediary. The actual cash might be deposited in various banks in smaller amounts (often below reporting thresholds to avoid suspicion) or used to purchase other goods and assets that can easily be sold. I hope this clarifies things! Let me know if you have any more questions, and thanks for engaging with my content! 👍🏻

[@vishnucs1994]

😍informative

[@FinCrimeAgent]

Thank you. I will soon publish a new video update on TBML - stay tuned if you are interested in this topic 👍🏻

[@kinenoona1702]

Thank you

[@FinCrimeAgent]

You are very welcome, I’m glad my contents are useful 🙂

[@mohammedejaz7662]

Hi, Could you please recommend certification which covers TBML?

[@FinCrimeAgent]

Hi Mohammed, thanks for reaching out. I see that ACAMS provides a course specific on TBML, the programme looks quite comprehensive. Take a look at this link: www.acams.org/en/training/certificates/trade-based-money-laundering#overview-4b887384

[@NamaskaraSir-pk]

Hi Marco Can you please clarify what type of TBML method is "Commodities being traded that do not match the business involved". Choices: -Carousel Trans, -Deliberate Obfuscation -Falsifying Receivable invoice -Phantom Shipping

[@FinCrimeAgent]

Hi and thank you for your comment. With my answer here I can only give you my personal opinion on this as I cannot reference an official definition of "Commodities being traded that do not match the business involved" against the TBML methods that you have listed. Out of the 4 options that you have indicated, I would go for 'Deliberate obfuscation of Goods'. My reason for this is mainly based on the Wolfsberg principles as under Deliberate obfuscation of the Type of Goods they say that: “Parties may structure a transaction in a way to avoid alerting any suspicion to FIs or to other third parties which become involved. This may simply involve omitting information from the relevant documentation or deliberately disguising or falsifying it. This activity may or may not involve a degree of collusion between the parties involved and may be for a variety of reasons or purposes.”

[@kipyegonmoses9902]

Good

[@FinCrimeAgent]

Thanks for your feedback 👍🏻

[@henlohenlo689]

i still kind of don't understand how misrepresenting the value of items traded can be used to generate money out of thin air. can simplified answer here?

[@FinCrimeAgent]

Hi and thanks for commenting on my video. Let me try to explain this a bit further. Misrepresenting the value of items traded can be used to generate money out of thin air through techniques like over and under-invoicing. For example, by over-invoicing an imported item, the extra money paid can be funneled back to the exporter through a non-legitimate route. This creates "phantom" funds that appear to have materialized out of nowhere, effectively laundering money through trade transactions. Let me know if this makes it any clearer. Thanks for watching my videos! Marco

[@henlohenlo689]

@@FinCrimeAgent can you read ramaswami's wiki page. vivek ramaswami. he is running for usa president. and he started shell companies in bermuda a tax haven. and randomly made 1 billion appear out of thin air from a a china bank. then now is net worth 1 billion based off of activities that contributed nothing of tangible value to the world. i worked hard as a trucker my whole life i still can barely afford my own rent. so vivek is net worth billion and his businesses failed. even on changed drug names and business names and had his mom falsify documents to unfail previously failed drugs using his mom(yes sounds crazy i know). why is he not arrested yet? and even worse, he's using his massive wealth to influence politics in usa. sam bankman fried was bidens 2nd largest compagn contributor. and now vivek is running for president. i did research on shell companies and they hot spots for shell companies is bermuda which is where vivek used his. is it likely vivek did money laundering, maybe you can investigate?

[@mikevinitsky8506]

If someone has cash in millions you can't pay for imports with cash. You can't simply send cash to another country. Correct me if I'm wrong.

[@FinCrimeAgent]

Hi @mikevinitsky8506, thanks for your comment. You’re correct that paying for imports with large amounts of cash isn’t straightforward due to regulatory controls. My video focuses on how criminals use complex trade transactions, like over- and under-invoicing, to launder money, not on the legality of large cash transactions for imports. These methods allow illicit funds to be disguised within legitimate trade, rather than directly sending cash. I hope this clarifies. Let me know if you need more info. Thanks for watching 👍🏻

[@mikevinitsky8506]

@@FinCrimeAgent it makes the transactions you describe impossible in real life. Please make another video of something that is plausible.

[@FinCrimeAgent]

Hi, thanks for your feedback. The examples I provided in the video are based on real-world cases and well-documented TBML techniques used by criminals. Techniques like over- and under-invoicing, multiple invoicing, and the Black Market Peso Exchange are actual methods used to disguise illicit funds. While these transactions can be complex and sophisticated, they are very much plausible and have been used in various instances globally. I’ll continue to strive for clarity and will consider showcasing additional real-life examples in future videos. I also invite you to watch my other videos on the TBML topic which you can find on this playlist: kzbin.info/aero/PL0Pufzwcosu9dt2Ssy6Wu757kazOqsaU-&si=uoA1ILnSzyhBMxkc Thanks again for engaging with my content!

[@mikevinitsky8506]

@@FinCrimeAgent how would you use these methods when you have bags of cash?

[@FinCrimeAgent]

Great question. Trade-based money laundering (TBML) typically involves more sophisticated financial transactions rather than directly dealing with large amounts of cash. When criminals have a “bag of cash” or even more significant amounts of cash, they often use initial money laundering methods like smurfing to break down the cash into smaller amounts that are less likely to trigger reporting requirements. Once the cash is in the banking system, it can then be used in TBML schemes. The techniques I discussed, such as over- and under-invoicing or multiple invoicing, are methods to move these laundered funds across borders under the guise of legitimate trade. TBML is a way to further disguise the origins and movement of these funds, not the initial method of handling cash. Hope this clarifies how these processes work in real life!