Accounts offered by brokers or financial institutions enabling the buying and selling of raw materials and primary agricultural products. These accounts support various trading instruments, including futures, options, spot contracts, and high-value commodities such as gold and diamonds.
Main/
Commodities Trading Accounts
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Code
PS0039
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Name
Commodities Trading Accounts
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Version
1.0
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Category
Wealth & Investment
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Created
2025-03-14
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Modified
2025-04-02
Related Techniques
- By opening accounts that permit the trade of high-value commodities like diamonds or gold, launderers can launder funds through multiple purchase and resale transactions.
- The complexity of futures, options, or derivative trades in such commodities can further obscure the flow and ownership of criminal proceeds.
- Criminals deposit high-value commodities acquired through smuggling into trading accounts and obscure the illicit origin by mixing with legitimate trades.
- Profits from the sale can then be transferred or reinvested, integrating illicit proceeds into the formal financial system.
- These accounts can handle precious metals and gemstones (including gold and diamonds), allowing criminals to obscure transactions among legitimate commodities trades.
- Under- or overstating commodity values across jurisdictions provides cover for layering and integration.
- Traders deliberately over- or under-value trades in raw materials to create illicit gains or losses on paper.
- Layering occurs through complex trading strategies and multiple accounts, hindering detection of beneficial owners.
- Facilitate the buying and selling of high-value raw materials, providing a channel for layering illicit profits.
- Fictitious or inflated trades conceal the genuine origins and volumes of trafficked commodities.