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CS Professional · IFSCA - Regulations, Listing and Compliances · Book-keeping, Accounting, Taxation and Financial Crime Compliance Services and TAS

Ravi Sundaram, a compliance officer, notices that a TAS platform user repeatedly uploads invoices of the same goods and amount, financed by different financiers. Which risk is most directly indicated?

The pattern indicates duplicate or double financing of the same receivable, a recognised trade-based fraud risk. TAS platforms are expected to have controls such as unique invoice checks and reconciliation. Genuine diversification would involve different receivables rather than the same invoice financed repeatedly by several financiers.

  1. ADuplicate financing of the same receivable, a trade-based fraud riskCorrect
  2. BNormal diversification of funding sources
  3. CForeign exchange gain on revaluation
  4. DDividend distribution risk

Explanation

Financing the same invoice with several financiers is double financing, a classic trade finance fraud that platforms must detect through controls such as unique invoice identification and reconciliation. Funding diversification would involve different receivables, not the same invoice repeatedly.

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