TBML: The Invisible Laundromat

Trade-based money laundering hides in plain sight. Discover how to detect it before your business becomes a silent accomplice.

Uncover the hidden dangers of trade-based money laundering and learn how to protect your business from becoming an unwitting accomplice.

When we think of Anti-Money Laundering Compliance (AML), we often picture suitcases of cash or anonymous crypto wallets. But one of the most dangerous and sophisticated forms of laundering today is far more mundane: it hides in the paperwork of everyday trade. Welcome to the world of Trade-Based Money Laundering (TBML), where criminal networks exploit cross-border commerce to clean illicit money — and compliance professionals often don’t even see it coming.

This blog focuses on AML risk in cross-border trade, particularly from a UK, EU, and US regulatory perspective. If you’re an AML professional, compliance officer, exporter, or consultant, this one’s for you.

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Key Questions Covered in This Blog

1. What exactly is Trade-Based Money Laundering (TBML)?

2. Why does TBML often go undetected by traditional AML programmes?

3. What are the key red flags and typologies to look out for?

4. How can you strengthen AML risk assessments and transaction monitoring to detect TBML?

5. What role do KYC, CDD, and AML screening tools play in tackling TBML?

6. What are the regulatory expectations in the EU, UK, and US for cross-border AML compliance?

7. How can businesses create a multi-disciplinary approach to AML in trade?

   
   

"To truly fight money laundering in trade, we need to stop treating trade and finance as separate silos. Financial crime doesn't recognise those boundaries. Neither should we."Arne Mielken, Managing Director, Customs Manager Ltd

Abbreviations Used In This Blog

• AML – Anti-Money Laundering

• TBML – Trade-Based Money Laundering

• KYC – Know Your Customer

• CDD – Customer Due Diligence

• SAR – Suspicious Activity Report

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What exactly is Trade-Based Money Laundering (TBML)?

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