Airlines increasingly focused on trade-based money laundering

Airlines are increasingly focussing on trade-based money laundering (TBML) and turning to specialist software providers whose risk management systems can check the compliance of goods flowing through air cargo’s global supply chain.

Even though the shipper has a legal responsibility to carry out TBML checks, airlines are well aware that regulators such as the Office of Foreign Assets Control (OFAC) in the US and the Monetary Authority of Singapore (MAS) are keeping a close eye on their industry.

Lufthansa’s compliance

One example of an airline using a specialist software provider whose risk management systems can check the compliance of goods they carry is Lufthansa Cargo.

It uses Accuity’s trade compliance system to mitigate its risk, particularly in respect of dual-use goods and sanctions compliance.

Trade finance product manager at London-based Accuity, Byron McKinney, recently told the Air Cargo News news site that its constantly updated software identifies goods sent by or destined for sanctioned or otherwise problematic companies or individuals.

Document checks

It also addresses the issue of checking manual documents by digitising paper-based content so that data screening can take place to check the shipper, where the shipment is going, and whether the consignee or consignor is known to work under a number of different aliases, to obscure their way of work.

“We aim to make it easier for our customers to spot where those instances of trade based money laundering might actually be,” McKinney says.



Categories: Trade Based Financial crimes News