Customer
Practitioner · Case Study
Trade-Based Money-Laundering Red Flags
A trade looks normal until invoice, route and customer profile are compared together.
Invoice
Unit price is far from normal market range without explanation.
Route
Goods move through several unrelated jurisdictions with no obvious economic reason.
Documents
Descriptions on invoice and transport document do not match cleanly.
Bank response
Bank requests evidence and pauses rather than immediately declaring criminal activity.
Lesson
Several indicators justify deeper review; red flags are not themselves proof of crime.
Work the case like a practitioner
Before looking only at the outcome, separate the instrument from the surrounding transaction. Use these questions every time.
Instrument
What undertaking, payment method or document is actually involved?
What undertaking, payment method or document is actually involved?
Rules & deadline
What rules, expiry, maturity or presentation deadline controls the next step?
What rules, expiry, maturity or presentation deadline controls the next step?
Evidence
Which facts are independently verified and which are only counterparty claims?
Which facts are independently verified and which are only counterparty claims?
Bank action
What must the bank authenticate, approve, examine or settle?
What must the bank authenticate, approve, examine or settle?
Remember: a case illustrates a method of thinking. A real bank may require different documents, approvals or procedures.