As trade based money laundering becomes a growing global problem a new solution offering holistic risk management of trade finance is hoping to solve the problem. So how does it work?
Thomson Reuters has launched TRAC, its new anti-money laundering solution to combat trade based money laundering (TBML) and drive transparency and efficiency across trade finance.
TRAC which stands for “Trade Finance, Regulations, Audit and Control” is a first-of-its kind end-to-end solution offering holistic risk management of trade finance while satisfying the Monetary Authority of Singapore and Hong Kong Monetary Authority’s recently developed guidelines on combating TBML.
Disguising The Proceeds of Crime
TBML is the use of international trade as a channel for legitimising money attained from illicit activities. Schemes vary in complexity but typically involve misrepresentation of the price, quantity, or quality of imports or exports. Financial institutions may wittingly or unwittingly be implicated in these schemes when they are used to settle, facilitate, or finance international trade transactions.
TRAC combats risks at different stages of the trade finance life-cycle. From pre-trade, execution to post-trade, it performs screening of vessels and third parties (buyer/ seller/ shipper), tracks shipments, provides regulatory reporting and monitors transactions.
The solution utilises a powerful and highly customisable workflow for users and incorporates Thomson Reuters World-Check for compliance screening, Eikon for price validation and shipment tracking as well as OneSource for dual goods screening to help banks and financial institutions comply with regulations and increase efficiency and transparency across their trade finance operations.
