Aml/cft

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  • Publicado : 23 de febrero de 2011
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Which are some reasons AML/CFT measures in FTZs do not apply?

As it was mention before the Free trade zone is hard to measure or standardize regulations inspecific sectors, a reason for this can be, first, the rapidly growing and developing of FTZ and this standards or guidance (AML/CFT) is been left behind and causing risk inpreventing illegal activities. This has become a challenge to promote and create a better regulated FTZ.

But not only the rapidly developing of FTZ are affectingthe effectiveness of measuring them, the second reason applying to this is also that some of the times a regulation or jurisdiction do not apply in the zone as the rest ofthe country, an example of this is reporting large-value currency transactions and in other cases STRs (Suspicious Transaction Reports).

And third and probably themost important is the business in FTZs that fall outside the AML/CFT regulations, it means that some business with special activities or operations are not been takingaccount for this provisions or regulations, so some businesses with this description falling outside the scope traditional financial sector providers, apply to this.With this we can consider that even with regulations the variety of business and the rapidly growing of FTZs are allowing to people to keep this illegal activity,AML/CFT provisions have to grow and expand as the business do, in order to regulate Free Trade and also because another risk that AML/CFT present is the continuous use of cash,and in consequence it does not need financial institutions and to present particular ML/FT risks, this is because of its portability, anonymity and lack of an audit trail.
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