Elgar original reference
Edited by Brigitte Unger and Daan van der Linde
Chapter 20: International trade mispricing: trade-based money laundering and tax evasion
This chapter contributes to the literature on trade-based money laundering, tax evasion and terrorist financing by providing an analysis of previously unused statistical techniques and methodologies as a means of monitoring, detecting and prosecuting criminal money laundering activities. The chapter describes how new statistical profiling methodologies that evaluate transactions contained in a country’s international trade database can mitigate the risks associated with trade-based money laundering. It discusses the application of four new trade-based money laundering profiling techniques which focus on country, product and transaction price risk characteristics. For years, individuals who study international trade pricing patterns have reported on the evidence that abnormal pricing in trade was being used to move money across borders, undetected by governments and law enforcement agencies. It was argued that abnormal trade pricing may be motivated by attempts to evade income taxes or import duties, or it may be related to moving ‘dirty’ money earned from criminal activities.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.