Trade-Based Money Laundering (TBML)

The disguising of illicit proceeds through the international trade system by misrepresenting the price, quantity, or quality of goods on shipping and trade-finance documents. FATF’s 2006 typologies report identified the core techniques: over- and under-invoicing, multiple invoicing for one shipment, over- and under-shipment, and falsely described goods. Bills of lading, letters of credit, and freight invoices are the instruments. It moves value across borders under the cover of legitimate commerce, which makes it hard to detect against normal trade flows.