FREE TRADE ZONES UNDER INCREASING PRESSURE TO RAISE THEIR AML/CFT GAME
August 23rd, 2024
Free trade zones (FTZ) have long been identified as having potential vulnerabilities for ML/TF/PF. And while they are not a key priority for FATF as it assesses the criteria for its fifth mutual evaluation round (MER5), given FTZs are still growing in number, international concern about their criminal money risks persists.
The global AML body released a paper highlighting ML/TF concerns about free zones as long ago as 2010 (1) when it stressed "how FTZs are misused for money laundering and terrorist financing”, with criminals exploiting inadequate AML/CFT ...
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