Top Challenges in Financial Crime Compliance and How to Solve Them

Financial crime is tightening its grip on global trade. Whether it’s sanctions evasion, trade-based money laundering (TBML), or document fraud, bad actors are using legitimate transactions to move illicit value across borders undetected.

With more than $32 trillion in goods traded globally each year, and enforcement agencies stepping up scrutiny, the cost of non-compliance is rising sharply. A single misstep, missed sanctions update, incomplete documentation, or a suspicious shipment can result in fines, seizures, or reputational damage.

Why Is Financial Crime Compliance So Difficult Today?

1. Sanctions Shift Daily

There are now over 470 global sanctions lists, updated frequently by agencies like OFAC, the EU, the UK, and the UN. Missing even one update can expose your business to enforcement actions.

2. Document-Based TBML Schemes

Fraudsters exploit document loopholes, over-invoicing, quantity mismatches, suspicious routes, or fake paperwork to hide TBML activity. Traditional manual checks are too slow and inconsistent to catch these schemes.

3. Conflicting Global Regulations

Compliance officers must navigate U.S. AML laws, FATF recommendations, EU directives, and various national KYC standards. The result? An overwhelming mix of rules and audit obligations.

4. Hidden Ownership Structures

Shell companies and layered ownership across multiple jurisdictions make it difficult to identify the ultimate beneficial owners of entities involved in trade, an issue increasingly targeted by regulators.

5. Outdated Manual Workflows

Many compliance teams still depend on spreadsheets, email threads, and static PDFs. These legacy processes delay decision-making, increase error rates, and leave room for undetected risk.

How Does Trademo TradeScreen Simplify Compliance in Global Trade?

Trademo TradeScreen automates and unifies every critical compliance check within a single platform, screening documents, counterparties, goods, and vessels in real time. Here’s how it keeps you a step ahead of financial crime:

1. Instantly Digitize Any Trade Document

Upload Letters of Credit, Bills of Lading, invoices, and even handwritten forms, and TradeScreen uses advanced OCR + AI to extract structured data with 95%+ accuracy. Available via API, SFTP, or drag-and-drop uploads.

2. Automatic Document Classification

TradeScreen identifies and classifies documents by type commercial invoices, packing lists, shipping documents, and flags missing, duplicate, or inconsistent paperwork. This eliminates common gaps exploited in TBML cases.

3. Enforce Global Documentary Standards

Each document is verified against UCP 600, ISBP 821, URC, and URDG rules. Whether it's an LC, BoL, or invoice, TradeScreen ensures documentary compliance from the start, minimizing costly processing errors and delays.

4. Detect TBML Red Flags

TradeScreen runs over 1,000 automated checks per transaction to detect:

• Pricing anomalies (over- or under-invoicing)
• Quantity mismatches
• Suspicious shipping routes or transshipments

Its risk engine identifies subtle red flags that manual reviews often miss, so you can act before a transaction turns into a liability..

5. Real-Time Sanctions & AML Screening

Every entity shipper, consignee, bank, carrier, or vessel is screened against 660+ global sanctions and PEP lists. TradeScreen ensures your transactions never touch blacklisted actors or high-risk individuals.

6. Product & Goods Screening Using product descriptions and HS codes, TradeScreen flags:

• Restricted or controlled items
• Dual-use goods
• Illicit or embargoed commodities

This helps ensure you're not unintentionally shipping goods that breach export controls or trigger AML red flags.

7. Maritime Compliance Made Simple

TradeScreen verifies:

• Vessel legitimacy and ownership
• AIS shipping routes
• Port calls in sanctioned or high-risk regions

It detects tactics like ship spoofing, flag hopping, or concealed transshipments that often signal sanctions evasion.

Stay Ahead of Financial Crime Risk

Global trade continues to accelerate, but your compliance operations don’t have to fall behind. Trademo TradeScreen empowers teams to screen more efficiently, detect risks with greater precision, and respond proactively, all while eliminating the inefficiencies of manual processes.

learn how TradeScreen can streamline and strengthen your financial crime compliance framework.

Get in touch