Over-invoicing in trade-based money laundering serves to do what?

Over-invoicing in trade-based money laundering serves to do what?

• A. Invoicing a price above fair market value to receive value from the buyer
• B. Under-invoicing to move value to the buyer
• C. Short-shipping to misreport quantity
• D. Ghost Shipping to create fake trades

Answer: (A)

Over-invoicing is a trade-based money laundering technique where the seller charges more than the goods are worth on the invoice. The buyer pays the inflated price, and the excess funds cross borders as legitimate-looking trade payments. This lets illicit proceeds be moved to another country under the veneer of a real transaction, effectively laundering the money. Under-invoicing would move value in the opposite direction, while short-shipping and ghost shipping involve misreporting quantity or fake shipments, not inflating the price.

Over-invoicing is a trade-based money laundering technique where the seller charges more than the goods are worth on the invoice. The buyer pays the inflated price, and the excess funds cross borders as legitimate-looking trade payments. This lets illicit proceeds be moved to another country under the veneer of a real transaction, effectively laundering the money. Under-invoicing would move value in the opposite direction, while short-shipping and ghost shipping involve misreporting quantity or fake shipments, not inflating the price.