Expert says TBML caused by tariffs and sanctions

An analyst who focuses on the economic foundations of authoritarian rule has warned that tariffs and sanctions drive some states, individuals and multinational firms to pursue international commercial trade using trade-based money laundering (TBML) methods that evade US customs and financial centres.

In a piece for the Stratfor website, Clay Fuller argues that for these actors, illicit money transfers are increasingly disguised as commercial transactions.

Trade wars, tariffs and sanctions

Fuller, a Jeane Kirkpatrick fellow at the American Enterprise Institute, reckons that as anti-money laundering rules for financial institutions expand and enforcement improves, illicit money transfers are increasingly facilitated by TBML operations.

Trade wars, tariffs and sanctions meanwhile drive many states, individuals and multinational firms to pursue international commercial trade using TBML methods that evade US customs and financial centres.

If trade tensions and sanctions worsen, so will the problems of TBML, but when things improve, TBML will remain he argues. 

Limited technology impact

While new technologies can counter TBML activities, efforts will have limited efficacy without public-private international information sharing Fuller concludes.

The American Enterprise Institute is a conservative leaning Washington based think tank.

The full article by Clay Fuller can be found here.



Categories: Trade Based Financial crimes News

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