Banks’ role in combatting trade-based financial crime

Banks should be leading the way combatting trade-based financial crime where trade financing is involved, according to an Australian banker.

But associate director of trade products at ANZ, Abhishek Vyas, says a definitive solution requires synchronised efforts across the banking industry, regulators and other partners across the trade value chain.

Information sharing

Vyas maintains that one essential factor to achieve greater success in combatting trade-based money laundering is to improve transparency across the trade value chain.

This he suggests could include mutual information sharing not only amongst banks but also dynamic information exchanges between financial institutions, regulators, customs agencies, law enforcement offices and tax authorities.

The banker calls for clear and consistent compliance standards by regulators across jurisdictions, which he thinks would provide much needed support and confidence while addressing concerns on data privacy.

Effective prevention

Other measures he suggests could also help include the establishment of a network of trade transparency units that reflect a focus on financial transparency, international cooperation and increased use of data analytics.

As these initiatives grow in size and scope, along with increasing transparency and partnership across physical trade value chain, Vyas reckons that the detection and prevention of trade-based financial crimes should become more effective.

Abhishek Vyas’ full discussion of banks’ role in combatting trade-based financial crime can be found here.

Categories: Trade Based Financial crimes News

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