trade-based money laundering

Trade-based money laundering involves disguising illegal funds by manipulating international trade transactions. Criminals might over- or under-invoice goods, alter shipping documents, or misrepresent trade values to move money across borders undetected. This method exploits the complexity of global trade, making it difficult authorities to identify illicit activity. Essentially, illegal profits are 'laundered' into the legitimate economy through the guise of normal trade transactions, allowing criminals to legitimize their funds while avoiding financial detection.