Introduction
In 2021, global trade reached a record high of US$28.5 trillion, with the
World Economic Forum predicting faster growth in the coming years than
that seen in the previous decade. Cross-border e-commerce alone is
projected to grow from $300 billion in 2020 to $1 trillion by 2030
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.
Source: World Economic Forum, McKinsey
Supply chain disruptions tied to COVID-19 and the war in the Ukraine have
triggered shortages in everything from baby formula to the raw materials
needed to build semiconductors, leading to pressure from politicians and
private industry on customs organizations and ports authorities to move
cargo in and out faster.
All this has raised the pressure on customs officials to a boiling point.
They need to ensure accurate assessment of tariffs, prevent illicit goods
from crossing their borders, and ensure safety - and all while processing
goods faster.
However, faster clearance makes it more difficult to prevent illicit trade
and criminal activities. Bad actors are using increasingly sophisticated
technology to evade detection. Today’s criminals and terror groups use
encrypted communication channels, hide maritime vessel locations
through AIS manipulation, and use cryptocurrency to launder money.
This combined with the fact that criminal and terror groups are increasingly
trans-national and operate across multiple countries, makes it far more
difficult for customs officials to detect illicit activities.
Most customs-related crimes can be divided into one of two categories.
There are types of fraud motivated by the desire to avoid or reduce
customs taxes, or to launder illicit funds through trade-based money
laundering. Essentially, these are financial crimes.
$28.5T
$1T
global trade
volume in 2021
e-commerce volume
expected in 2030
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Intro
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