TBML seen as third most frequent financial crime by financial institutions

Trade-based money laundering (TBML) is the third most frequent financial crime seen by financial institutions according to a new report by LexisNexis Risk Solutions.

Future Financial Crime Risks, 2020 says 31 per cent of financial institutions saw TBML cases of financial crime while 37 per cent of institutions saw cases involving money mules and the criminal use of third parties.

Complex crimes

The report found that the complexity of these crimes makes detection and prevention very difficult and the threat level for each is not expected to abate.

The study reveals many financial institutions to be less than fully confident they can detect many of the most prevalent crimes cited. Some 49 per cent of institutions said they were less than fully confident in detecting TBML, while 55 per cent expressed a lack of confidence detecting crimes involving  the proceeds of trafficking.

Lack of capabilities

Some 52 per cent of financial institutions said they lacked confidence detecting the misuse of corporate structures while 43 per cent said they were not confident in detecting the misuse of digital currencies.

Some institutions highlighted that they simply do not have the data points to be able to detect these types of offences.



Categories: Trade Based Financial crimes News

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