Trade Based Money Laundering (TBML) is one of the main laundering typologies worldwide, alongside abuse of the formal financial sector and physical cross-border cash smuggling, according to a study, released on Tuesday at a roundtable meeting.
Bangladesh Institute of Bank Management (BIBM) organized the roundtable at it’s conference hall to release the study paper.
“Yet, historically, the global enforcement community devoted far less scrutiny and resourcing to the trade domain than to the banking sector, creating an ‘enforcement gap’ that has made TBML an increasingly attractive channel for criminals”, the study mentioned.
Nurun Nahar, Chairman, BIBM Executive Committee and Deputy Governor, Bangladesh Bank attended the roundtable discussion as the chief guest while Chief Guest while Md. Shihab Uddin Khan, Professor and Director (Research, Development & Consultancy), BIBM delivered address of welcome .
The study also revealed that each year an estimated 2-5 % of world GDP-roughly USD 800 billion to USD 2 trillion-is laundered through the financial system (UNODC, 2025).
TBML is widely thought to underlie about 30 % of all laundering schemes, yet it is rarely flagged; in 2019, only 0.2 % of Suspicious Activity Reports (SARs) referenced TBML (World Economic Forum, 2021).
Dr. Shah Md. Ahsan Habib Professor (Selection Grade), BIBM made keynote presentation on the study Paper while team members Tofayel Ahmed, Assistant Professor, BIBM, Anila Ali, Assistant Professor, BIBM , Shah Alam Kazi, Joint Director, Bangladesh Financial Intelligence Unit (BFIU), Md. Mahmudur Rahman, Deputy Managing Director, Islami Bank Bangladesh PLC, A. T. M. Nesarul Hoque, Executive Vice President, Mutual Trust Bank PLC assisted him. The keynote speaker mentioned that unlike many financial crimes that pass through the banking system alone, TBML exploits the very architecture of cross-border trade.
He said criminals embed falsified or manipulated documentation inside standard trade-finance instruments and the flow of funds, which makes detection exceptionally difficult. Principles and Criteria for Effective TBML Enforcement based on Global Standards To address TBML challenges, policymakers and banks must anchor their TBML frameworks in globally-recognized standards.
“Aligning domestic rules with these benchmarks ensures common red-flag indicators, price-verification methodologies, and STR reporting formats, facilitating cross-border intelligence-sharing and mutual legal assistance”, study said.
Faruq M. Ahmed, A K Gangopadhaya Chair Professor, BIBM,. Md. Ali Hossain Prodhania, Supernumerary Professor, BIBM took part in discussions on the study.
