TRADE FINANCE FRAUD
Identifying Red Flags, Strengthening Controls, and Protecting Financial Integrity
Course Schedule
| Date | Venue | Fees (Face-to-Face) |
|---|---|---|
| 16 – 17 Jul 2026 | Dubai, UAE | USD 1995 per delegate |
Course Introduction
Trade finance, while vital to global commerce, is highly susceptible to fraud due to its reliance on documents, cross-border complexity, and multi-party transactions. Fraudulent activities—such as duplicate financing, forged documents, and collusion—can expose banks and corporates to significant financial and reputational risks.
This 2-day practical course equips participants with the tools and insight to identify, prevent, and investigate fraud in trade finance. Using real-world case studies and red-flag checklists, the training covers common fraud typologies, internal control gaps, due diligence practices, and regulatory expectations in combating financial crime in the trade ecosystem.
Course Objectives
By the end of this course, participants will be able to:
• Recognize fraud risks across key trade finance instruments
• Detect warning signs in documents and transactions
• Implement internal controls to mitigate fraud exposure
• Respond effectively to suspected fraud and escalate incidents
• Understand regulatory frameworks and due diligence requirements
Key Benefits of Attending
• Identify fraud schemes targeting letters of credit, collections, and guarantees
• Analyze case studies of major frauds in international trade
• Strengthen anti-fraud policies and frontline transaction reviews
• Learn investigative steps and documentation techniques
• Reduce risk exposure through better training and detection tools
Intended Audience
This program is designed for:
• Trade finance officers and compliance professionals
• Risk and internal audit teams in banks and corporates
• Operations staff handling LC, collections, and bills
• Relationship and account managers in trade services
• Legal, fraud investigation, and regulatory reporting teams
Individual Benefits
Key competencies that will be developed include:
• Fraud detection in transactional and documentary review
• Investigation planning and response coordination
• Understanding money laundering risks in trade finance
• Building control frameworks and compliance alerts
• Collaboration with regulatory and investigative bodies
Organization Benefits
Upon completing the training course, participants will demonstrate:
• Stronger controls in trade processing workflows
• Faster detection and resolution of fraud attempts
• Improved compliance with AML and KYC standards
• Enhanced staff awareness and accountability
• Reduced reputational and financial risk exposure
Instructional Methdology
The course follows a blended learning approach combining theory with practice:
• Fraud Typology Briefings – Schemes and vulnerabilities in trade finance
• Case Studies – Global fraud incidents and lessons learned
• Interactive Exercises – Document review and red flag spotting
• Group Discussions – Internal control best practices
• Checklists & Tools – KYC, red flags, dual use goods, and fraud indicators
Course Outline
Training Hours: 7:30 AM – 3:30 PM
Daily Format: 3–4 Learning Modules | Coffee Breaks: 09:30 & 11:15 | Lunch Buffet: 01:00 – 02:00
Day 1: Trade Finance Fraud Risks and Schemes
- Module 1: Overview of Trade Finance Products and Risk Points (07:30 – 09:30)
• Letters of credit, collections, guarantees, and open account
• Where fraud typically occurs and why - Module 2: Fraud Typologies in Trade Transactions (09:45 – 11:15)
• Over-invoicing, duplicate financing, ghost shipments
• Collusion between parties and use of shell companies - Module 3: Red Flags in Trade Documentation (11:30 – 01:00)
• Fake invoices, false shipping documents, altered B/Ls
• Document checklists and digital signature issues - Module 4: Workshop – Spot the Red Flags (02:00 – 03:30)
• Analyze sample documents for anomalies
Day 2: Controls, Response, and Regulatory Alignment
- Module 5: Internal Controls and Monitoring Mechanisms (07:30 – 09:30)
• Segregation of duties, dual reviews, transaction monitoring - Module 6: Investigation and Escalation Process (09:45 – 11:15)
• Steps in internal investigations
• Reporting fraud to regulators and financial intelligence units - Module 7: International Standards and AML Compliance (11:30 – 01:00)
• Trade-based money laundering (TBML) indicators
• OFAC, FATF, and Wolfsberg trade finance principles - Module 8: Final Exercise – Design a Fraud Response Checklist (02:00 – 03:30)
• Build a toolkit for frontline transaction review
Certification
Participants will receive a Certificate of Completion in Trade Finance Fraud, confirming their readiness to detect, prevent, and respond to fraudulent activity within trade finance operations, in accordance with global best practices and regulatory standards.