Thomson Reuters Unveils TRAC to Combat Trade-Based Money Laundering

Thomson Reuters has launched TRAC, its new anti-money laundering solution to combat trade-based money laundering (TBML) and drive transparency and efficiency across trade finance. TRAC which stands for “Trade Finance, Regulations, Audit and Control” is now available in Singapore and Hong Kong; release across the APAC region, then globally, will follow.

TBML is the use of international trade as a channel for legitimizing money attained from illicit activities. Schemes vary in complexity but typically involve misrepresentation of the price, quantity, or quality of imports or exports.

Financial institutions may wittingly or unwittingly be implicated in these schemes when they are used to settle, facilitate, or finance international trade transactions.

“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,” says BC Tan, Head of Client & Third Party Risk, Asia Pacific, Thomson Reuters.

“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.”

Thomson Reuters says TRAC is a first-of-its kind end-to-end solution offering holistic risk management of trade finance while satisfying the Monetary Authority of Singapore and Hong Kong Monetary Authority’s recently developed guidelines on combating TBML.

Combats risks at different stages of the trade finance

TRAC combats risks at different stages of the trade finance life-cycle. From pre-trade, execution to post-trade, it performs screening of vessels and third parties (buyer/ seller/ shipper), tracks shipments, provides regulatory reporting and monitors transactions.

The solution utilizes a powerful and highly customizable 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.

“Thomson Reuters is proud to launch TRAC, our newest solution in the fight against global trade based money laundering,” says Sanjeev Chatrath, Managing Director, Financial & Risk, Asia Pacific, Thomson Reuters.

“By fostering an open and compliant network in trade finance, it encourages transparency and better business conduct. TRAC brings together unique data assets and workflow solutions across screening, dual use goods information on export controls and a wealth of commodities, FX and shipping data.”

Suggested Articles

Some of you might have already been aware of the news that Questex—with the aim to focus on event business—will shut down permanently all media brands in Asia…

Some advice for transitioning into an advisory role

Global risks are intensifying but the collective will to tackle them appears to be lacking. Check out this report for areas of concern