Money Laundering in International Trade Finance

What is it about?

The purpose of this paper is to critically examine the role of banks in detecting and mitigating money laundering risks in trade finance activities, especially in commercial letters of credit, and to answer the central question: do the banks comply with the regulations but the regulations are inadequate (if so, is more stringent regulation compatible with the commercial world of trade finance?), or the banks are in danger of non-compliance?

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Why is it important?

The findings may influence banks to adopt more vigilant approach in their trade finance activities and to undertake more responsibility in ensuring compliance with the current AML law and regulations, while highlighting that their current practice may put them in danger of non-compliance.