// IFF610 — Trade-Based Money Laundering (TBML)
$CATEGORY: VERITAS/IFF610

::IFF610-Q1::Over-invoicing transfers value from\: {
    ~Exporter country to importer country#Incorrect. The excess payment moves from the importer's jurisdiction to the exporter's — a laundering vector for capital flight.
    =Importer country to exporter country#The excess payment moves from the importer's jurisdiction to the exporter's — a laundering vector for capital flight.
    ~Neither, it is neutral#Incorrect. The excess payment moves from the importer's jurisdiction to the exporter's — a laundering vector for capital flight.
    ~Only within the exporter country#Incorrect. The excess payment moves from the importer's jurisdiction to the exporter's — a laundering vector for capital flight.
}

::IFF610-Q2::The Berger-Nitsch methodology detects TBML by\: {
    ~Scanning cargo containers#Incorrect. It compares reported exports from A to B with reported imports into B from A; systematic gaps signal TBML.
    =Comparing bilateral trade-gap discrepancies#It compares reported exports from A to B with reported imports into B from A; systematic gaps signal TBML.
    ~Auditing customs officers#Incorrect. It compares reported exports from A to B with reported imports into B from A; systematic gaps signal TBML.
    ~Using AI to read invoices#Incorrect. It compares reported exports from A to B with reported imports into B from A; systematic gaps signal TBML.
}

::IFF610-Q3::Bilateral trade-gap analysis compares\: {
    ~Exchange rates between two currencies#Incorrect. Berger-Nitsch style analysis compares mirror declarations across borders; persistent gaps expose systematic TBML at scale.
    =Country A's declared exports to Country B against Country B's declared imports from Country A#Berger-Nitsch style analysis compares mirror declarations across borders; persistent gaps expose systematic TBML at scale.
    ~Two companies' revenue reports#Incorrect. Berger-Nitsch style analysis compares mirror declarations across borders; persistent gaps expose systematic TBML at scale.
    ~Two tax returns#Incorrect. Berger-Nitsch style analysis compares mirror declarations across borders; persistent gaps expose systematic TBML at scale.
}

::IFF610-Q4::A Free Trade Zone raises AML risk because\: {
    ~It has no goods#Incorrect. FTZs' commercial advantages — light customs, warehousing, re-invoicing — become laundering vulnerabilities when supervision is thin.
    =Streamlined customs, opaque re-invoicing and light supervision combine to accelerate layering#FTZs' commercial advantages — light customs, warehousing, re-invoicing — become laundering vulnerabilities when supervision is thin.
    ~It only exports agricultural products#Incorrect. FTZs' commercial advantages — light customs, warehousing, re-invoicing — become laundering vulnerabilities when supervision is thin.
    ~It is always in a tax haven#Incorrect. FTZs' commercial advantages — light customs, warehousing, re-invoicing — become laundering vulnerabilities when supervision is thin.
}

::IFF610-Q5::The Travel Rule for virtual assets requires VASPs to\: {
    ~Report every transaction publicly#Incorrect. FATF R.15 extends the wire-transfer Travel Rule to VASPs, originator/beneficiary data must accompany qualifying transfers.
    =Transmit originator and beneficiary identity data with transfers above threshold#FATF R.15 extends the wire-transfer Travel Rule to VASPs, originator/beneficiary data must accompany qualifying transfers.
    ~Convert crypto to fiat#Incorrect. FATF R.15 extends the wire-transfer Travel Rule to VASPs, originator/beneficiary data must accompany qualifying transfers.
    ~Freeze all wallets#Incorrect. FATF R.15 extends the wire-transfer Travel Rule to VASPs, originator/beneficiary data must accompany qualifying transfers.
}

::IFF610-Q6::For a developing-country investigator with no in-house crypto analytics, the most effective single leverage point is\: {
    ~Public blockchain mining#Incorrect. The off-ramp is where the obliged entity sits, an exchange can be compelled to disclose KYC and freeze balances.
    =The off-ramp; where crypto converts to fiat through an obliged VASP#The off-ramp is where the obliged entity sits, an exchange can be compelled to disclose KYC and freeze balances.
    ~Confiscating home computers#Incorrect. The off-ramp is where the obliged entity sits, an exchange can be compelled to disclose KYC and freeze balances.
    ~Banning stablecoins#Incorrect. The off-ramp is where the obliged entity sits, an exchange can be compelled to disclose KYC and freeze balances.
}

::IFF610-Q7::Real-estate purchases through anonymous corporate vehicles are dangerous because\: {
    ~The properties often depreciate#Incorrect. Title is public — the abuse's spine is that the public title identifies only the corporate vehicle, not the natural person behind it.
    =Title records reveal only the shell, not the ultimate owner#Title is public — the abuse's spine is that the public title identifies only the corporate vehicle, not the natural person behind it.
    ~Rental income cannot be declared#Incorrect. Title is public — the abuse's spine is that the public title identifies only the corporate vehicle, not the natural person behind it.
    ~They violate zoning law#Incorrect. Title is public — the abuse's spine is that the public title identifies only the corporate vehicle, not the natural person behind it.
}

::IFF610-Q8::The FATF Travel Rule for virtual assets applies to transfers above approximately\: {
    ~USD 100#Incorrect. FATF's Recommendation 15 guidance sets the Travel Rule threshold at USD/EUR 1,000, requiring transmission of originator and beneficiary identity.
    =USD 1,000#FATF's Recommendation 15 guidance sets the Travel Rule threshold at USD/EUR 1,000, requiring transmission of originator and beneficiary identity.
    ~USD 10,000#Incorrect. FATF's Recommendation 15 guidance sets the Travel Rule threshold at USD/EUR 1,000, requiring transmission of originator and beneficiary identity.
    ~USD 100,000#Incorrect. FATF's Recommendation 15 guidance sets the Travel Rule threshold at USD/EUR 1,000, requiring transmission of originator and beneficiary identity.
}

::IFF610-Q9::The most effective single detection technique for TBML is\: {
    ~Physical container inspection#Incorrect. Comparing declared exports from A to B against declared imports into B from A produces systematic gaps that expose TBML at scale.
    =Bilateral trade-gap comparison (Berger-Nitsch)#Comparing declared exports from A to B against declared imports into B from A produces systematic gaps that expose TBML at scale.
    ~Interviewing exporters#Incorrect. Comparing declared exports from A to B against declared imports into B from A produces systematic gaps that expose TBML at scale.
    ~Auditing customs officers#Incorrect. Comparing declared exports from A to B against declared imports into B from A produces systematic gaps that expose TBML at scale.
}