Trade-Based Money Laundering (TBML) involves falsifying trade details like price, quantity, or goods to disguise illicit funds. It's hard to detect, especially in open account settlements. Traditional monitoring systems fall short due to the complexity of trade finance and the reliance on unstructured data like invoices and shipping docs. Many institutions delegate TBML oversight to trade business units, but regulators are raising concerns about this approach. Effective TBML detection requires advanced, automated tools capable of analyzing diverse, non-standardized data and ensuring proper corporate governance.

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