Ghost Shipping refers to which practice?

Ghost Shipping refers to which practice?

• A. Fictitious trades where documentation indicates goods were sold and shipped, but no goods were actually shipped
• B. Real shipments with mislabeled contents
• C. Overshipment of goods
• D. Underreporting of shipments

Answer: (A)

Ghost shipping is a trade-based money laundering tactic where records show goods were sold and shipped, but no actual shipment occurs. The scheme relies on fabricated documents—like bills of lading and commercial invoices—to create the illusion of legitimate trade activity. This fake trade can be used to move illicit funds, inflate revenue, or facilitate financing, tax refunds, or sanctions evasion. Red flags include invoices and documents that lack verifiable shipment records, inconsistencies between stated quantities or values and normal market norms, no tangible delivery evidence, and relationships with questionable or non-existent suppliers or buyers. The essential point is that the transaction exists on paper without any real goods moving through the supply chain.

Ghost shipping is a trade-based money laundering tactic where records show goods were sold and shipped, but no actual shipment occurs. The scheme relies on fabricated documents—like bills of lading and commercial invoices—to create the illusion of legitimate trade activity. This fake trade can be used to move illicit funds, inflate revenue, or facilitate financing, tax refunds, or sanctions evasion. Red flags include invoices and documents that lack verifiable shipment records, inconsistencies between stated quantities or values and normal market norms, no tangible delivery evidence, and relationships with questionable or non-existent suppliers or buyers. The essential point is that the transaction exists on paper without any real goods moving through the supply chain.