What is MOST important for a launderer engaging in international trade as a money laundering mechanism?

Engaging in international trade as a method of money laundering often involves manipulating the values placed on goods in order to disguise the true nature of the financial transaction. Over- or under-invoicing goods is a critical tactic in this process because it allows money launderers to shift value across borders without drawing significant attention from regulatory authorities or financial institutions.

When a launderer over-invoices goods, they can artificially inflate the price to transfer excessive funds to foreign accounts, facilitating the illegal movement of money disguised as legitimate business activities. Conversely, under-invoicing can allow them to export goods at a lower price and then bring in illicit money under the guise of legitimate export transactions.

This method is particularly advantageous because it can mask illicit funds within legitimate trade transactions, making it harder for authorities to detect the money laundering activities. The complexities of international trade, coupled with varying regulations across jurisdictions, provide an environment where such tactics can be employed effectively.

In contrast, selling exported goods for maximum value, using goods that do not need to be declared, and dealing with high-value assets like luxury cars or boats, while they may be part of various money laundering schemes, do not specifically focus on the manipulation of invoices and values tied to trade, which is the most important