WASHINGTON, D.C. – BAFT (Bankers Association for Finance and Trade), the leading global industry association for international transaction banking, has released a white paper titled Combatting Trade Based Money Laundering” (TBML), updating the document originally published in 2017.
The original 2017 work aimed to help address common misconceptions around fighting TBML and to recommend effective alternatives approaches. Criminals hide illicit funds by integrating them into normal commercial flows, but the sheer volume of transactions makes it nearly impossible for banks alone to detect, let alone prevent, TBML.
The objective of the current working group was to re-examine the effectiveness of efforts to combat financial crime, taking into account efforts over the past several years, while ensuring legitimate commerce, through trade continues to flow efficiently. During the reassessment, it was examined how a broader group of stakeholders in international trade have, and could continue, to better align resources in helping reduce TBML and the use of trade channels to finance terrorist activity.
“The tools at the disposal of banks have improved, which allows for materially improved TBML detection and prevention, but criminals are also using advanced tools and AI which greatly enhances the risks to the banks and society as a whole” said Tod Burwell, BAFT President and CEO. “This updated white paper recommends strategies and tactics to address this ever-evolving threat.”
To access the full white paper, visit www.baft.org
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About BAFT (Bankers Association for Finance and Trade)
BAFT is the leading global industry association for international transaction banking. Bringing together financial institutions, service providers, and the regulatory community, BAFT provides thought leadership, advocacy, education, and a platform for collaboration to promote sound financial practices that foster innovation, efficiency, and commercial growth. The association engages in a broad range of issues affecting transaction banking, including trade finance, payments, and compliance, helping members navigate a rapidly evolving global landscape. For more information about BAFT, visit baft.org, or follow BAFT on X (Formally Twitter), LinkedIn, and YouTube.