Illicit trade is a complex global problem with serious economic consequences. Black market activities create a host of negative effects both domestically and abroad—legitimate companies lose billions in sales, governments lose billions in tax revenue, law enforcement agencies divert resources to investigate crimes, and consumers fall victim to unregulated or unsafe products. Illicit trade activities encompass a vast range of activities including smuggling (alcohol, cigarettes); counterfeiting (handbags, jewelry, money); trafficking (drugs, firearms, humans); and pirating (movies, music, software).

Similar to money launders, illicit traders use seemingly legitimate businesses to hide criminal activity. As transnational organizations overtake smaller operators, their access to advanced technology and liquid capital increases the scope and scale of the challenges. Governments and companies must adapt to the evolving landscape. Illicit trade networks mirror the global economy—supply and demand, consumer preferences, business conditions, and governing frameworks drive the market. These networks become increasingly difficult to unweave as they integrate with the broader global market.

Our proprietary database access enables our subject matter experts to draw connections between companies and individuals, breaking down the facades of illicit traders and their networks. We use this data, in combination with shipment data and open source research, to link shipping routes and entities of interest. With our expertise, a single name of interest can help identify a 30-ton container on a 25,000-ton container ship to unravel the threads of an entire organization.

Proceeds from illicit goods and services are easily concealed via cash payments; falsified invoice documents; collusion with, and kickbacks from, corrupt officials; shell companies, whose owners/beneficiaries are concealed; falsely established overseas trusts and offshore bank accounts; and black market currency exchanges. We leverage document caches, such as the Panama Papers, Paradise Papers, and Bahama Leaks to gain invaluable intelligence for illicit trade investigations. Insights from these documents help identify true ownership structures and establish relationships between companies and individuals, which can be integrated with other data we analyze.

Illicit trade networks are continuously evolving to stay one step ahead of authorities. Emerging developments, such a cryptocurrencies, make comprehensive research and analysis more valuable to disrupting these networks.  This is why TRSS employs not only internal databases but open source research expertise to capitalize on publically available information.