WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) introduced the Containing and Limiting the Extensive Abuse Noticed in Free Trade Zones Act (CLEAN FTZ) to create a trade rating system based on U.S. and international standards to combat trade-based money laundering and other criminal activities in foreign free trade zones. Currently, no formal rating system for free trade zones exists making it challenging for federal enforcement authorities to address illegal trafficking of illicit narcotics, persons, weapons, tobacco, counterfeits, commodities, wildlife, and more.
“Why are we trading with countries that don’t fight corruption?” said Dr. Cassidy. “We are combating the flow of illegal drugs, weapons, and more. Seems important.”
The CLEAN FTZ Act:
- Creates a formal rating system with four tier classifications of countries based on compliance to U.S. and international standards.
- Gives countries an overall rating based on the performance of all free trade zones under their national jurisdiction.
- Makes the ratings publicly available and is updated annually.
- Allows the Commissioner of U.S. Customs and Border Protection to make recommendation to improve efforts to combat illicit trade to countries rated tier II, III, and IV.
- Creates a hotline for reporting of instances of illicit trading and money laundering activity.
- Provides financial penalty options for foreign persons involved in illicit international trade.
Cassidy was joined by U.S. Senator Sheldon Whitehouse (D-RI) in introducing this legislation.
The CLEAN FTZ Act is supported by the International Coalition Against Illicit Economies (ICAIE), Transparency International U.S., and the Global Financial Integrity (GFI).
“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,” said David M. Luna, Executive Director for ICAIE. “Disrupting the increasing cross-border flows of illicit goods, contraband, and dirty monies and dismantling transnational illicit networks and their enablers from financing other criminalities and threats helps all communities to secure greater peace and security.”
“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,” said Scott Greytak, Director of Transparency International U.S. “By enhancing oversight of free trade zones, ensuring that they comply with globally recognized anticorruption and trade transparency frameworks, and holding bad actors accountable, this legislation would help disrupt the financial networks that enable bribery, fraud, and the abuse of public trust, and will help safeguard global markets and protect economies from the destabilizing effects of financial crime.”
“Global Financial Integrity (GFI) endorses the CLEAN FTZ Act of 2025 and commends Senators Cassidy and Whitehouse for their collaboration on this important piece of legislation. Once in force this legislation will shed light on the operations of free trade zones around the globe, many of which have long been known to facilitate all manner of illegal activity including trafficking, illicit trade, and money laundering. Further, the proposed sanctions against perpetrators of illegal activity through these zones will protect U.S. ports and American consumers from goods that may be harmful. It is also important to note that under this legislation the U.S. government can provide recommendations for improvement to countries where low-performing zones are located,” said Tom Cardamone, President and CEO for GFI.
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