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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Beyond Banks
T2 - A Case for Interagency Collaboration to Combat Trade-based Money Laundering in Africa
AU - Azinge, Nkechikwu
PY - 2023/1/31
Y1 - 2023/1/31
N2 - Regulation regarding trade-based money laundering (TBML) has focused mainly on documentary trade financing arrangements, which are bank intermediated. Yet, African countries predominantly employ alternative forms of trade financing modelsthat span beyond banks’ usual purview. These alternative models are supported by many actors across the supply chain that are not holistically supervised given the fragmented regulatory framework at the global and domestic levels. In contending that TBML significantly undermines intra-African trade and therefore amounts to a non-tariff barrier (NTB) to trade, this article challenges the need for globally transplanted solutions to address TBML. Rather, it argues for the introduction of new approach: a country focused experimental legislation that facilitates inter-agency collaboration beyond banks. This approach would ensure a homegrown, responsive, and legitimate framework that encompasses currently un-supervised actors. It contends that if the experimental legislation works at a country level, it may then be cascaded to the African Union level for contextual adaptability across other African countries.
AB - Regulation regarding trade-based money laundering (TBML) has focused mainly on documentary trade financing arrangements, which are bank intermediated. Yet, African countries predominantly employ alternative forms of trade financing modelsthat span beyond banks’ usual purview. These alternative models are supported by many actors across the supply chain that are not holistically supervised given the fragmented regulatory framework at the global and domestic levels. In contending that TBML significantly undermines intra-African trade and therefore amounts to a non-tariff barrier (NTB) to trade, this article challenges the need for globally transplanted solutions to address TBML. Rather, it argues for the introduction of new approach: a country focused experimental legislation that facilitates inter-agency collaboration beyond banks. This approach would ensure a homegrown, responsive, and legitimate framework that encompasses currently un-supervised actors. It contends that if the experimental legislation works at a country level, it may then be cascaded to the African Union level for contextual adaptability across other African countries.
KW - trade financing
KW - trade-based money laundering
KW - non-tariff barrier to trade
U2 - 10.1163/17087384-bja10070
DO - 10.1163/17087384-bja10070
M3 - Journal article
VL - 15
SP - 38
EP - 68
JO - African Journal of Legal Studies
JF - African Journal of Legal Studies
SN - 2210-9730
IS - 1
ER -