Thomson Reuters Launches TRAC to Tackle Trade Based Money Laundering

Thomson Reuters, a source of news and information for professional markets, has today announced the launch of TRAC, a new anti-money laundering solution to combat trade based money laundering (TBML) and drive transparency and efficiency across trade finance.

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Trade Based Money Laundering

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

BC Tan, Head of Client & Third Party Risk, Asia Pacific, Thomson Reuters said, “Trade finance is fundamental to global trade, yet indicators highlight TBML as a growing global problem with a recent report from Global Financial Integrity suggesting 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”.

End-to-End Solution

TRAC which stands for “Trade Finance, Regulations, Audit and Control” is a first-of-its kind end-to-end solution offering holistic Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term 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 Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term to post-trade, it performs screening of vessels and third parties, tracks shipments, provides regulatory reporting and monitors transactions.

The solution utilises a powerful and highly customisable 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 and increase efficiency and transparency across their trade finance operations.