Official Text
“Use of falsified trade documents, misdeclaration of value/quality/quantity, or sham consignments to launder illicit funds.”
Legal Analysis
Elements to Prove:
- Falsified or manipulated trade documentation.
- Movement or disguise of illicit value.
- Link to proceeds of crime.
Potential Defenses:
- Legitimate pricing and documentation.
- No illicit funds involved.
- Corrected bona fide error.
Practical Examples
What Constitutes the Offense:
Over-invoiced exports for subsidy drawdown, under-invoiced imports to move value, ghost shipments.
What Doesn't Constitute:
Bona fide pricing differentials with documentation, legitimate rebates, clerical valuation errors corrected.
Punishment
Imprisonment up to 10 years, and Fine