Trade-based money laundering

We need not wait for a financial disaster to combat this upgraded form of money laundering.

A big money laundering scandal concerning the Bank of Baroda in 2015 shocked the entire Indian banking system. It was deduced that trade-based money laundering (TBML) for financial gains made through illegal receipts of duty-based drawbacks had been in operation. It transpired that Indian companies exported overvalued products through fake bills, and the Hong Kong companies submitted counterfeit import bills to claim duty drawbacks—and this was all done through banking channels. Last year, the case of remitting funds to various companies in Singapore, China and Hong Kong in the guise of payments for the import of customised software was reported in India. The accused prepared forged invoices to the tune of IRs3 billion.