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Freeports: innovative trading hubs or centres for money laundering and tax evasion?

Research output: Contribution to journalArticlepeer-review

This article provides a critical overview of freeports’ trading operations and considers to what extent they may present a money-laundering and tax-evasion risk. This study reviews the literature surrounding freeports and offers an up-to-date narrative of their potential money-laundering and tax-evasion activities. The paper relies on secondary data from published sources referencing peer-reviewed articles and ‘grey-literature’ material relating to freeports, offshore finance, and anti-money laundering control. This study demonstrates the attractive trading advantages offered by freeports to enable enterprise and innovation. However, the article reveals that the secretive offshore space in which freeports operate also helps to obscure beneficial ownership and illicit trade-based practices that frustrate authorities’ efforts to trace laundered monies and recover government taxes. Despite freeports’ trade offerings, stronger regulation is needed to prevent them being abused for money-laundering and tax-evasion purposes. This study provides an important insight into the money-laundering and tax-evasion risks presented by freeports and, in doing so, advances the contemporary debate on illicit activities occurring through offshore jurisdictions.
Original languageEnglish
JournalJournal of Money Laundering Control
Publication statusAccepted for publication - 11 Jan 2021

Documents

  • Freeports Post_print

    Rights statement: The embargo end date of 2050 is a temporary measure until we know the publication date. Once we know the publication date the full text of this article will be able to view shortly afterwards.

    Accepted author manuscript (Post-print), 404 KB, PDF document

    Due to publisher’s copyright restrictions, this document is not freely available to download from this website until: 1/01/50

    Licence: CC BY-NC

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