Trade-Based Money Laundering (TBML) refers to the process of disguising the proceeds of crime by using legitimate trade transactions. Criminals manipulate the value, quantity, or quality of goods in international trade to transfer illicit funds across borders, making the money appear to come from legitimate sources. Techniques include over-invoicing, under-invoicing, misrepresentation of goods, and multiple invoicing for the same shipment. 

In Anti-Money Laundering (AML) processes and efforts, detecting TBML is challenging due to the complexity of trade transactions. Financial institutions and customs authorities must monitor trade activities, perform due diligence, and analyse unusual patterns in trade finance. Effective compliance programs, including trade transaction screening and collaboration with global financial bodies, help mitigate the risks of TBML. These measures are crucial for identifying and preventing financial crimes that exploit international trade systems.