IRANIAN SEIZURE OF PORTUGUESE SHIP IN THE STRAIT OF HORMUZ ADDS ONE MORE UNCERTAINTY FACTOR INTO SHIPPING AND RISK COSTS AND THEREBY FURTHER ASSISTS TBML LAUNDRYMEN

Compliance officers conducting transaction monitoring duties for international banks that have international trade clients should note that this week's illegal Iranian Navy seizure of a merchant vessel en route to India adds still more fuel to the difficulties they face daily in determining whether specific payments for shipping, including insurance and risk costs, or wholesale goods, is legitimate, or trade-based money laundering. the increased threat of a wider war in the Middle East specifically between Iran's proxy terrorist forces and the State of Israel, is now the highest it has been since the attacks on 7 October.

You should expect to find major increases in the direct and indirect costs of shipping goods to Europe, and such variable costs will fluctuate wildly, meaning there is no rhyme or reason to accurately calculate or estimate them. TBML laundrymen are having a field day placing criminal proceeds within such payments, and you will be hard-pressed to identify and interdict them. Nevertheless, by maintaining close ties on your information sources for insurance, risk management, shipping costs, and miscellaneous expenses that are now being routinely charged, you can cut through the confusion, and arrive at an accurate determination of what is legit and what is TBML. Press on in that manner to deal with any new challenges that may arise if a shooting war, or additional violence, occurs. It is your information resources that will serve you best in uncovering TBML.