A financial service that provides funding to businesses to optimize their supply chain operations. It involves leveraging technology and financial processes to improve cash flow by enabling extended payment terms for buyers and offering suppliers the option for early payment.
Main/
Supply Chain Financing
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Code
PS0088
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Name
Supply Chain Financing
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Version
1.0
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Category
Trade Finance & Commerce Enablement
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Created
2025-03-12
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Modified
2025-04-02
Related Techniques
- Fraudulent invoices overstating goods’ value allow criminals to receive excessive financing, effectively laundering proceeds.
- Reusing or duplicating the same invoices with multiple financiers conceals the origin and movement of funds.
- Criminals present identical or slightly altered invoices to various supply chain finance providers, each believing they are financing separate transactions.
- Multiple parallel financing streams are generated off the same shipment or service, layering illicit money under legitimate supply chain operations.
- Criminals embed inflated prices within purchase orders or invoices, then leverage supply chain financing to receive early payments on these exaggerated values.
- This effectively laundered difference is cloaked within standard supply chain workflows.
- Offenders overstate invoice amounts to obtain financing beyond the actual value of goods, channeling illicit funds as part of legitimate supply chain credit flows.
- Multiple layers of suppliers and financiers obscure the real nature of transactions, hindering effective oversight and traceability.
- Criminals misrepresent shipping documentation to claim extended or early payment terms for nonexistent or false shipments.
- Inflated or duplicated bills of lading can hide the actual nature or value of goods, securing unwarranted financing.
- Fictitious or inflated supplier invoices can be presented to obtain early payments or financing, even though no real goods exist.
- Multiple layers of suppliers and intermediaries in different jurisdictions obscure the fraudulent nature of transactions.
- Fraudsters can submit fabricated or inflated orders and invoices to secure financing against non-existent goods.
- Illicit funds are laundered as though they were legitimate working capital needs, hidden behind complex supplier-buyer arrangements.
- Fraudulent liabilities can be introduced into supply chain financing agreements, allowing criminals to receive funding for non-existent goods or services.
- These fictitious obligations help launder proceeds by blending them into legitimate operational financing, obscuring the true nature of transactions.
- Criminals submit fabricated purchase orders or invoices to manipulate financing amounts, moving funds without proportional movement of actual goods.
- Over- or under-invoicing within the supply chain spreads illicit proceeds across multiple transactions and jurisdictions.