Transfer Pricing-Based Money Laundering in Barter Trade

Dexiang Mei; Xiaojun Li

doi:10.4236/me.2015.66071

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Modern Economy > Vol.6 No.6, June 2015

Transfer Pricing-Based Money Laundering in Barter Trade ()

Dexiang Mei, Xiaojun Li

School of Economics and Management, Southwest Jiaotong University, Chengdu, China.

DOI: 10.4236/me.2015.66071 PDF HTML XML 4,182 Downloads 5,315 Views Citations

Abstract

Barter trade attracts money launderers by its flexible contract, payment term of reciprocal letters of credit, and convenient capital flight and tax evasion. As far as fair value and invoiced value of the transacted goods are concerned, transfer price-based money laundering in barter trade is done by the means of deflated import-inflated export, inflated import-deflated export, deflated import-deflated export, and inflated import-inflated export, where the money laundered can be measured by capital flight, income tax evasion, import duty evasion, and VAT refund evasion in each case. So we should reinforce transaction supervision, promote intelligence exchange, perfect relative regulations, and improve anti-money laundering awareness and capabilities.

Keywords

Barter Trade, Transfer Pricing, Money Laundering, Anti-Money Laundering

Share and Cite:

Mei, D. and Li, X. (2015) Transfer Pricing-Based Money Laundering in Barter Trade. Modern Economy, 6, 747-754. doi: 10.4236/me.2015.66071.

Conflicts of Interest

The authors declare no conflicts of interest.

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