Trade Finance Risk: Documentary Fraud and Money Laundering

  • ID: 5458
  • January 2001
  • Euromoney Trading Ltd
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Trade Finance Risk is a detailed yet practical guide to the detection and mitigation of the risks at the core of the international banking business.

The book opens with an examination of the characteristics of fraud and a definition of the problems. Twelve detailed chapters investigate topics such as types of fraud, bank risk analysis of fraud, due diligence and money laundering. The book then presents a practical seven-step guide to the techniques of fraud avoidance.

Of special interest to trade finance officers, bank risk analysts, internal audit and compliance officers and anyone involved in cross-border lending, this comprehensive book draws on the extensive experience of the author as an expert trade finance practitioner. It is an essential and up-to-date guide to dealing with the scams that can be hidden by organised criminal groups. It also explains how to avoid becoming a victim of fraud and money laundering, something that every banker needs to understand.

About the author
Saurabh Murkherjea joined Investor Access in the summer of 1997 as a books editor. In 1998 he graduated with a Masters degree in Economics from the London School of Economics. He then joined London Economics as a consultant-where he provides advice to clients wanting to solve real world problems using economic thinking.

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List of exhibits

The author

Chapter 1
Characteristics of contemporary documentary fraud
What is fraud?
Why is fraud so difficult to detect?
The relationship between fraud and money laundering

Chapter 2
Defining the problem in the products
Letters of credit
Standby letters of credit
Prime bank guarantees
Case study: The fertiliser scam

Chapter 3
Easy money – types of fraud avoidance
The 108 per cent fraud
The overuse of terms
Organised crime
Case study: The fraudulent LC

Chapter 4
Generic types of fraud
The straight forgery
A timed prime bank LC fraud
The story
High-yield investment programmes
Exclusive deals

Chapter 5
No goods to finance – the generic fraud of the last decade

Chapter 6
Fraud avoidance techniques – a seven-step guide
Avoid huge amounts
There is no such thing as easy money
Avoid pure financing deals
Fraudsters are not bankers
Does it make sense?
Report intimidation
Extend your orbit of relevance

Chapter 7
Bank risk analysis of fraud
The asset as fraud risk
BCCI – a forensic fraud analysis
Warning signs in a bank's balance sheet

Chapter 8
The CROCODILE grid system
Country of incorporation
Organisational structure
Currency or commodity
Operational structure
Due diligence
International network
Location of branch
Earnings potential of deal

Chapter 9
Due diligence
A working definition of due diligence
The ‘what if’ questions
The due diligence check list

Chapter 10
Money laundering
Principal phases and objectives
Smurfing and the euro
Money laundering through the Internet
Contemporary money laundering
Hawala banking
The link between documentary fraud and money laundering

Chapter 11

The dichotomy of money laundering
Bank secrecy versus transparency
BCCI – a money-go-round
Criminal intelligence

Chapter 12

How to avoid becoming a victim of fraud and money laundering
Money laundering

Appendix 1
A warning on online gambling as a conduit for money laundering

Appendix 2
Any fool can produce an original invoice

Appendix 3
Tips on LC fraud prevention

Appendix 4
Document on the structure of BCCI's management committees

Appendix 5
Austria to abolish anonymous accounts

Appendix 6
Extracts from judgment by Mr Justice Rix on Czarnikow-Rionda Sugar Trading v. Standard Bank London and others

Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown


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