Typology

Primary Mechanism

Financial Flow Impact

Key Investigative Red Flag

Over-Invoicing

Invoice priced far above fair market value.

Excess cash accumulates with the seller in an offshore tax haven.

Unit price significantly exceeds baseline commodity exchange prices.

Under-Invoicing

Invoice priced far below fair market value.

Buyer resells at true market value, creating an untracked pool of cash.

Valuation on customs documentation is abnormally low for the cargo weight.

Phantom Shipments

Complete fabrication of trade documents; zero physical goods moved.

100% of the funds transferred represent pure illicit capital flight.

Container numbers fail validation checks; shipping line logs show no record of the voyage.

Round-Tripping

Endless loop shipping of high-value, compact items among collusive firms.

Artificially inflates corporate trade volumes to justify large dollar transfers.

Physical inventory never leaves customs control; repetitive cross-border loops observed.