Which method to finance terrorism involves falsifying transaction-related documents?

The correct answer is C. Trade-based money laundering. Trade-based money laundering (TBML) is a method to finance terrorism that involves falsifying transaction-related documents, such as invoices, contracts, bills of lading, or customs declarations, to conceal the origin, destination, value, or purpose of illicit funds. TBML can…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

ABribery
BBlack market peso exchange
CTrade-based money laundering
DInformal value transfer system

How the community answered

(36 responses)

A
3% (1)
B
6% (2)
C
81% (29)
D
11% (4)

Explanation

Trade-based money laundering (TBML) is a method to finance terrorism that involves falsifying transaction-related documents, such as invoices, contracts, bills of lading, or customs declarations, to conceal the origin, destination, value, or purpose of illicit funds. TBML can be used to move money, goods, or services to or from sanctioned or high-risk jurisdictions, to evade taxes, duties, or currency controls, to launder proceeds of crime, or to support terrorist activities. TBML can involve over- or under-invoicing, over- or under-shipping, multiple-invoicing, or falsely describing goods or services. TBML can also be linked to other methods of money laundering or terrorist financing, such as bribery, black market peso exchange, or informal value transfer

Topics

#trade-based money laundering#terrorist financing methods#document falsification#placement techniques

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