Fighting illicit financial flows

According to Global Financial Integrity’s update, “Illicit Financial Flows to and from 148 Developing Countries 2006−2015’ developing economies saw more in illicit trade related payments leaving their counties than the value of the aid budgets flowing into them.

Robert Parson, a partner in the law firm Clyde & Co specialising in trade finance – who is also editor of the monthly legal journal Finance & Credit Law, stepped into the Trade Finance TV studio on location in Amsterdam to tell us more about the problem.

Enshrined in his April 2019 article on the same topic published Finance & Credit Law, is the list of how the financial criminals operate, with trade misinvoicing being the principle scam.

Industry collaboration is vital, and “banks have their part to play,” says Parson, despite the “grating” effect of data protection regulation. The Wolfsberg Group has outlined the standards for the control of this financial crime risks in the Trade Finance Principles 2019 and he believes that artificial intelligence (AI) will play an important role in stamping out this insidious form of financial crime.

Come and join us on Trade Finance TV to hear more about how crime must not pay.

Published on September 24, 2019

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