Illicit Financial Flows (IFFs) are a serious draw back on domestic resource mobilization efforts of developing countries. International trade has been abused for purposes of IFFs by criminals.
In particular, use of international trade to launder proceeds of crime and move value from one country to another has been identified as a prevalent form of IFFs. This form of IFFs is referred to as Trade Based Money Laundering (TBML).
The Financial Action Task Force defined TBML as “the process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimize their illegal origins or finance their activities”. TBML is an alternative remittance system that allows Transnational Criminal Organizations (TCOs) the opportunity to earn, move and store proceeds disguised as legitimate trade.
The purpose of the study was to identify the TBML risk indicators and provide a basis for authorities to formulate strategies to combat TBML in Zambia. The study further sought to provide recommendations to enhance Zambia’s capacity to combat TBML.
The full report can be accessed through the link below.
 FIC TBML REPORT 2022.pdf | [ ] |
