Lloyd’s List Intelligence recently highlighted a critical but often overlooked threat to the global shipping industry: its vulnerability to trade-based money laundering. This complex financial crime exploits the very arteries of international trade, posing a significant compliance challenge for maritime professionals.
How TBML Infiltrates the Supply Chain
At its core, trade-based money laundering (TBML) involves disguising the proceeds of crime and moving value by manipulating trade transactions. The sheer volume, complexity, and legitimate appearance of global shipping make it an attractive vector for illicit actors. Common techniques include over- or under-invoicing of goods, falsely describing cargo, and phantom shipments where no goods actually move. For shipowners, operators, and logistics providers, the danger lies not in direct involvement but in becoming an unwitting link in a criminal chain. This can lead to severe reputational damage, regulatory penalties, and operational disruptions.
A Call for Enhanced Vigilance and Collaboration
The maritime sector’s unique characteristics—fragmented supply chains, diverse stakeholders, and jurisdictional grey areas—create inherent loopholes that are difficult to police. For seafarers, maritime students, and logistics professionals, understanding this risk is the first step toward mitigation. It moves the issue from a purely financial concern to an operational one, integral to corporate maritime compliance and supply chain security.
Effectively combating this requires a shift towards greater trade transparency. This means enhanced due diligence on counterparties, leveraging maritime technology for better documentation tracking, and fostering collaboration between banks, insurers, and shipping companies.
As global financial crime units increase their focus on illicit trade flows, the industry’s proactive engagement is no longer optional but essential for maintaining the integrity of its operations.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Lloyd’s List
