A Study on the Effective Risk Management of Trade-based Money Laundering (TBML) Issues

Abstract

Research Purpose: The objective of this study is to explore the trade-based money laundering (TBML) risks and to offer effective risk management measures to counter them. Detecting and preventing TBML has been challenging for authorities, as it involves analyzing vast amount of trade data and recognizing patterns that may indicate suspicious activities. Research Methods: This study examined the traded-based money laundering risks and various challenges to mitigate them and attempted to offer several effective management measures to mitigate the TBML risks with TBML case studies. Results in Research: This study offers an integrated top-down risk-based approach as an effective risk management on the TBML problems, compared with traditional independent rule-based approach which are segmented and ineffective to the ever evolving TBML risks. Research Conclusion: As the TBML risks are evolving due to the expanded supply chain across the border, the complexity of TBML risks requires the coordinated and harmonized efforts with a top-to-bottom risk-based approach.