The US military has readied itself to play an active part in cracking down on trade-based money laundering (TBML), which it perceives to be a real threat in terms of criminal and terrorist financing.

Transnational threat networks – whether criminal, terrorist or both – using TBML and other increasingly sophisticated ways to move money pose increasingly complex challenges to US interests, according to a new report from the Joint Chiefs of Staff.

Adaptable adversaries

“Networked threats are highly adaptable adversaries with the ability to select a variety of tactics, techniques, and technologies and blend them in unconventional ways to meet their strategic aims,” the document said.

The report focuses on networks engaged, often clandestinely, in violent or criminal activity, and that may challenge US forces or undermine national or regional stability.

US military forces may, with the support of mission partners, conduct operations to intercept and prevent the movement of value transfers to the threat network as necessary according to the report.

TBML focus

This includes operations to intercept and prevent the smuggling of goods used in trade-based money laundering (TBML).

Military forces may also use this authority to seize cash from an adversary’s safe house, foreign exchange house, hawala or other type of informal remittance systems.

They can also seize electronic media including mobile banking systems commonly known as “red sims” and computer systems that contain evidence of cryptocurrency or other exchanges in the virtual environment.

The full report entitled Countering Threat Networks can be found here.

Categories: Trade Based Financial crimes News