Trade-based Financial Crimes a Huge Hole in Enforcement Net, Says Analyst

By Brian Orsak

That global trade is a murky business is nothing new. Criminals were exploiting tax systems, limited record keeping and loose border controls long before there were banking compliance officers. But as efforts to stem financial crime have increased exponentially in recent years, governments and international organizations, such as the Paris-based Financial Action Task Force, have made tentative steps to address the problem. Furthermore, technological developments offer governments unprecedented ability to address the trade-based crime. There's only one problem, according to Nikos Passas, a professor who studies financial crime at Boston-based Northeastern University: governments aren't utilizing available tools. The failure of...