Page 50 - Banking Finance July 2024

ARTICLE

TBML schemes can also involve misrepresenting the price, trafficking, criminal organizations have used TBML schemes
quantity, or type of goods or services in trade transactions. to launder proceeds from a range of other crimes, including
In misrepresentation schemes, the parties involved in the illegal mining, human trafficking, and the sale of counterfeit
trade transaction may under or over invoice goods or goods.
services; issue multiple invoices for the same goods or
services; provide goods or services than the declared International Bodies Involved in Efforts
amount, including in some cases providing no goods or
services; or falsely describe the types of goods or services to Combat TBML:
provided. Through these types of misrepresentation, value The Egmont Group: The Egmont Group, formed in 1995, is
can be transferred from one party to another, and the illicit composed of FIUs from 164 jurisdictions. The organization
origins of criminal proceeds obscured. seeks to foster information exchange among its members
to support efforts to combat money laundering and terrorist
A Variety of Criminal and Terrorist Organizations financing. In addition, the Egmont Group provides training
and technical assistance to its member FIUs. The Egmont
Use TBML to Disguise the Origins of their Illicit
Group's Secretariat is in Canada.
Proceeds and to Fund their Operations:
Drug trafficking organizations: Drug trafficking
organizations throughout Latin America, including in
Colombia and Mexico, have used TBML schemes for decades
to launder the proceeds from illegal drug sales.

Terrorist organizations: Terrorist organizations, including
Hezbollah and the Revolutionary Armed Forces of Colombia
(known by its Spanish acronym FARC), have also used TBML
schemes to launder funds.

Corrupt government officials: In certain countries, senior
government officials and government entities have used
TBML schemes to disguise profits derived from corrupt
practices.

Other criminal organizations: In addition to drug

BANKING FINANCE | JULY | 2024 | 45