On 23rd February 2023, the International Chamber of Commerce – Kenya Chapter (ICC Kenya) Banking Commission led by the chair Mr Kenneth Miriti and Mr John Oganda, a member of the Commission, joined other stakeholders during the Countering Trade Based Laundering Workshop organised by the Kenya Bankers Association (KBA) at a Nairobi Hotel. This was the start of a two-day workshop focusing on;
- Trade Finance Products and Services
- Laws, Regulations and Standards on TBML
- Risk Profiling of Trade Products and Transactions
- Trade-Based Money Laundering (TBML) Red Flags and Developing TBML Control
- Transaction Monitoring and Case Management
Speaking at the event, Mr Miriti said that the involvement of the International ICC) Kenya in creating platforms and avenues to address trade-based money laundering (TBML). As a member of the ICC, bankers are encouraged to take part in these reforms and training programs to be well-informed and prepared for upcoming international rules and regulations. Mr. Miriti emphasized the importance of being alert to prevent TBML activities and suggested that participating in training programs can enhance awareness and risk coverage.
On his part, Mr John Oganda, recommended public and private partnerships as a comprehensive approach to countering TBML activities. He also emphasized the need for post-transactional anti-money laundering (AML) monitoring.
TBML is a method used by criminals to launder the proceeds of their illicit activities through international trade transactions. It involves manipulating trade transactions to make them appear legitimate and disguise the true source of funds. Some common TBML methods include multi-invoicing, under-invoicing, and over-shipment.
Despite growing awareness of TBML, three main challenges hamper its prevention and detection: a lack of TBML standards, limitations in detection and monitoring, and the profitability vs. risk dilemma.
