Understanding Trade-Based Money Laundering and Invoice Manipulation
Explore the intricacies of trade-based money laundering and invoice manipulation as explained by John A. Cassara, with examples of abnormal U.S. trade prices, exports/imports of refrigerators, and the suspicious importation of gold scrap. Learn about the methods used to disguise illicit proceeds through trade transactions.
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Presentation Transcript
Trade-Based Money Laundering Defined by the Financial Action Task Force (FATF) as, the process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimize their illicit origins. Presentation by John A. Cassara
Invoice Manipulation Made Simple Money moved out: - By importing goods at overvalued prices or exporting goods at undervalued prices Money moved in: - By importing goods at undervalued prices or exporting the goods at overvalued prices Presentation by John A. Cassara
True Examples of Abnormal U.S. Trade Prices Low U.S. Export Prices Live cattle to Mexico, $20.65/unit Radial truck tires to U.K., $11.74/unit Toilet bowls to Hong Kong, $1.75/unit Bulldozers to Colombia, $1,741/unit Color video monitors to Pakistan, $21.90/unit Missile launchers to Israel, $52.03/unit Prefabricated buildings to Trinidad, $1.20/unit High U.S. Import Prices Plastic buckets from Czech, $972/unit Briefs and panties from Hungary, $739/doz Cotton dishtowels from Pakistan, $153/unit Ceramic tiles from Italy, $4,480/sq meter Metal tweezers from Japan, $4,896/unit Razors from the U.K., $113/unit Camshafts from Saudi Arabia, $15,200/unit Iron bolts from France, $3,067/kg Toilet tissue from China, $4,121/kg Presentation by John A. Cassara
Exports/Imports of Refrigerators 8,418 REFRIGERATORS $10,000,000.00 $9,000,000.00 $8,000,000.00 $7,000,000.00 $6,000,000.00 $5,000,000.00 $4,000,000.00 $3,000,000.00 $2,000,000.00 $1,000,000.00 $0.00 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 7 1 9 9 8 1 9 9 8 1 9 9 8 1 9 9 8 1 9 9 8 1 9 9 8 1 9 9 8 1 9 9 8 1 9 9 8 1 9 9 8 1 9 9 8 1 9 9 8 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9 1 9 9 9 2 0 0 0 2 0 0 0 2 0 0 0 2 0 0 0 $1 $2 $2 $2 $2 $2 $1 $2 $2 $2 $1 $2 $1 $2 $4 $2 $2 $6 $1 $1 $1 $3 $2 $8 $1 $3 $2 $7 $1 $9 $5 $8 $6 $8 $6 $1 $3 SED IMPORTS $1 $1 $2 $2 $3 $3 $2 $2 $2 $3 $2 $4 $1 $2 $2 $3 $4 $1 $1 $1 $1 $3 $2 $1 $5 $7 $4 $1 $6 $6 $4 $9 $7 $1 $7 $1 $5 $1 $1 $1 Presentation by John A. Cassara
HS gold scrap (in blue). Gold scrap for valuation purposes is actually undefined. There is no legitimate business reason why there would be importations of gold scrap in blue over the red baseline price of 4-9 gold bullion. Even importations of scrap closely under the baseline are suspect. Presentation by John A. Cassara
