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Thomson Reuters TRAC combats trade based money laundering

First Published 11th October 2016

Thomson Reuters launches Trade Finance, Regulations, Audit and Control, its new anti-money laundering solution to combat trade based money laundering (TBML).

Thomson Reuters launches TRAC, its new anti-money laundering solution to combat trade based money laundering (TBML) and drive transparency and efficiency across trade finance.

TBML is the use of international trade as a channel for legitimizing money attained from illicit activities. Schemes vary in complexity but typically involve misrepresentation of the price, quantity, or quality of imports or exports. Financial institutions may wittingly or unwittingly be implicated in these schemes when they are used to settle, facilitate, or finance international trade transactions.

"A recent report from Global Financial Integrity suggests that 80% of illicit financial flows from developing countries are made through TBML schemes. As a result, global regulators are launching initiatives to mitigate the risks surrounding trade finance, with Singapore and Hong Kong the first countries in Asia to issue specific regulations related to trade finance," said BC Tan, Head of Client & Third Party Risk, Asia Pacific, Thomson Reuters.

TRAC which stands for "Trade Finance, Regulations, Audit and Control" offers holistic risk management of trade finance while satisfying the Monetary Authority of Singapore and Hong Kong Monetary Authority's recently developed guidelines on combating TBML.

TRAC combats risks at different stages of the trade finance life-cycle. From pre-trade, execution to post-trade, it performs screening of vessels and third parties (buyer/ seller/ shipper), tracks shipments, provides regulatory reporting and monitors transactions. The solution utilizes a customizable workflow for users and incorporates Thomson Reuters World-Check for compliance screening, Eikon for price validation and shipment tracking as well as OneSource for dual goods screening to help banks and financial institutions comply with regulations.