Trade-based money laundering is ranked as the second most worrisome type of crime, behind bribery and corruption, in the State of Financial Crime of 2022 report. The international trading system is thus subject to a number of vulnerabilities.

Trade-based money laundering cost developing countries nearly $9 trillion between 2008 and 2017. Criminal organizations are increasingly taking advantage of seemingly legal activities to launder money and fuel terrorism.

The State of Financial Crime of 2022 report, examines money laundering and risk indicators in the context of global commerce. It then examines the challenges of combating trade-based money laundering and looks at ways to legally address it. Finally, the paper also briefly covers compliance processes in international trade.

Indeed, trade-based money laundering involves the exploitation of the international trading system to shift value and hide the true origins of illicit wealth. The techniques used are: ghost shipments and billing scams.