THE ROLE OF MISINVOICING IN THE MONEY LAUNDERING CYCLE, PP. 144 - 168
Traditionally, the emphasis of trade-based money laundering policy development has been directed towards financial transactions where the origin of capital is illegal, neglecting private sector companies utilising trade to launder money. Thus, can commercial businesses which engage in trade misinvoicing through cross-border trade be prosecuted for money laundering? With limited understanding of the money laundering cycle in international trade, it will be difficult for prosecutors to bring money laundering charges against commercial businesses operating in this sector. This paper looks at two cross-cutting themes: trade misinvoicing and trade-based money laundering. It argues that any motivation of trade misinvoicing that generates the proceeds of crime and eventually leads to the concealment or disguise of the true nature, source, location, disposition, movement or ownership rights with respect to property in contravention of the Palermo Convention are variants of money laundering. It finally determines that trade misinvoicing can be used for two purposes: firstly, to generate the proceeds of crime and, secondly, to launder money.