What are two red flags that indicate how trade-based money laundering could be occurring in this instance?

An automotive parts company in South America sends multiple $500,000 wire transfers per week to ABC Holdings Ltd. in Asia referencing payment for silk flower shipments. Research reveals Sunrise Holdings, Ltd is registered in the British Virgin Islands with no available ownership information.

What are two red flags that indicate how trade-based money laundering could be occurring in this instance? (Choose two.)
A . The transaction involves the use of front (or shell) companies
B . The packaging is inconsistent with the commodity or shipping method
C . Significant discrepancies appear between the description of the commodity on the bill of lading and the invoice
D . The type of commodity being shipped appears inconsistent with the exporter or importer’s regular business activities

View Answer

Answer: AC