Trade-based money laundering (TBML) describes a set of techniques through which drug traffickers, terrorists and other criminals use the veneer of trade to move illicit funds across borders while disguising the origin and ownership of the funds. One of the most common and sophisticated forms of money laundering, TBML poses significant challenges for law enforcement, financial institutions and other legitimate parties involved in international trade. Although reliably measuring the size of an intentionally secretive business is inherently challenging, estimates of the money involved in TBML run into the billions of dollars annually.

Originally published by GIR - October 2023.