Central Louisiana News

U.S. Senator Bill Cassidy has introduced legislation aimed at combating illicit international trade within foreign free trade zones. The proposed law, known as the Containing and Limiting the Extensive Abuse Noticed in Free Trade Zones Act (CLEAN FTZ), intends to create a trade rating system based on U.S. and international standards to address issues such as trade-based money laundering and other criminal activities. At present, no formal rating system exists for these zones, making it difficult for federal authorities to manage the illegal trafficking of narcotics, weapons, counterfeits, and more.

"Why are we trading with countries that don’t fight corruption?" asked Dr. Cassidy. "We are combating the flow of illegal drugs, weapons, and more. Seems important."

Senator Sheldon Whitehouse has joined Cassidy in introducing the legislation, which has received backing from several prominent organizations, including the International Coalition Against Illicit Economies (ICAIE), Transparency International U.S., and Global Financial Integrity (GFI).

David M. Luna, Executive Director for ICAIE, voiced support for the legislation: “We applaud Senators Cassidy and Whitehouse for their leadership in protecting our national security, American competitiveness, and the health and safety of our citizens by countering illicit trade, organized crime, and money laundering across some of today’s risky free trade zones around the world."

Scott Greytak, Director of Transparency International U.S., emphasized the bill's significance in fighting corruption. "The CLEAN FTZ Act takes a crucial step in the fight against corruption by targeting how foreign corrupt officials rely on trade-based money laundering to move and conceal the proceeds of their crimes," he said.

Tom Cardamone, President and CEO of GFI, also expressed support, stating that the legislation would illuminate the operations of free trade zones worldwide, many of which are involved in various illegal activities. He added that the proposed sanctions would help protect U.S. ports and consumers from harmful goods.

The CLEAN FTZ Act would enhance oversight on these zones, ensure compliance with global anticorruption standards, and hold accountable those engaged in illicit activities, thereby helping to safeguard markets and economies across the globe.