Expert Warns of Money Laundering Risks on Money Circulating through Foreign Commerce Channels

Expert Warns of Money Laundering Risks on Money Circulating through Foreign Commerce Channels
Dominican Republic, Santo Domingo, 05/16/2011

The president of the Organizing Committee of the Hemispheric Congress for the Prevention of Money Laundering of the Banking Association of Panama, Julio Aguirre, warned of the risks involved in foreign commerce operations. He said the main factors related to this problem involve contraband, over or under-reporting of trade transactions, or trade mispricing, fictitious exports and false documentation.

“We have to be clear about what our role is as financial intermediaries so that if the importer or exporter does something strange, it will be detected,” he added.

Aguirre participated in the International Anti-Money Laundering Conference Against the Financing of Terrorism whose theme was “How to mitigate the risks of money laundering in foreign commerce operations.”

The event, held in Punta Cana, brought together speakers from 12 countries as well as dozens of Latin American officials and experts who work in institutions whose goal is to combat money laundering.

The Panamanian specialist contended that to reduce the risk of money laundering in international commerce operations, it is fundamental to identify the real participants in this activity which includes the exporters as well as the importers and to find out who is involved in the country of origin and destination point.

He stressed that financial operations and management of international commerce should always be done through reputable and well-known banks. He stressed the importance of these financial entities in the struggle against  illicit activities on the part of their clients or possible clients. The objective is to make the banking transactions much more transparent.

“We have to be clear about what our role is as financial intermediaries so that if the importer or exporter does something strange, it will be detected,” he added.