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Free Trade Zones Vulnerable to Laundering, Tax Evasion: FATF
By Brian Monroe
printCriminals are exploiting inadequate safeguards in free trade zones to launder money, evade taxes and illegally ship material used to build weapons of mass destruction, according to an intergovernmental group. The international zones, which lure exporters and importers with reduced finance and trade controls, have not kept pace with changing anti-money laundering (AML) standards, according to a 48-page report released by the Financial Action Task Force (FATF) Friday. The same characteristics that have drawn investors to free trade zones have attracted criminals, FATF said. Overall, the zones require fewer inspections of goods and less record-keeping and beneficial ownership data than...
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