CTPAT and Trade-Based Money Laundering

Blog originally posted on 25/01/2023 07:45 AM

CTPAT and Trade-Based Money Laundering Blog Header

The Executive Assistant Commissioner of U.S. Customs and Border Protection (‘CBP’) recently wrote that Fiscal Year 2023 would see CBP placing greater focus on the issue of trade-based money laundering (‘TBML’). CTPAT members should make note of this, as there are CTPAT Minimum Security Criteria that address TBML.

One underlying tenet of the CTPAT program is that members take a close look at their supply chain to identify risks and gaps. Once risks and gaps are identified, CTPAT members must take steps to mitigate those risks. This principle applies to the risk of TBML activity in your supply chain just as much as it applies to any of the other CTPAT Minimum Security Criteria. So, how does a CTPAT member determine if the risk of TBML activity is present in their supply chain? A good place to start is to look to see if you have business partners that are registered or have offices in jurisdictions with weak measures to combat money laundering and terrorist funding. Another factor to consider is if you have products that are vulnerable to TBML activity.

CTPAT Minimum Security Criteria have three recommendations regarding TMBL activity:

  1. Check for activities related to TBML activities when screening supply chain partners.
  2. Take TBML warning indicators into account when reviewing import or export documentation information.
  3. Provide annual training to trade compliance, security, procurement, finance, shipping, and receiving personnel who may be able to identify signs of TBML.

While the review of TBML criteria are currently only recommendations, there is always the possibility they will become requirements in the future.

Tradewin can provide Trade-Based Money Laundering training or assist with developing TBML procedures for CTPAT participants – please feel free to contact us.

New call-to-action

Topics: CTPAT, North America

Blog originally posted on 25/01/2023 07:45 AM

Andrew Bodien, Senior Consultant

Written by Andrew Bodien, Senior Consultant

Andrew joined Tradewin in 2010 after more than a decade of experience as a Customs Broker for Expeditors International. As a consultant, he offers expertise in compliance data analysis, system development, reporting, project management, and education of compliance subjects. Combining all these aspects, he has been playing a lead role in CTPAT as well as key valuation and reconciliation projects. Andrew is a graduate of the University of Washington and holds a Bachelor of Arts in Political Science. He is a US Licensed Customs Broker. Andrew can be reached at 503-863-2625.