Publication European Parliament Study 'The Inclusion of Financial Services in EU Free Trade and Association Agreements: Effects on Money Laundering, Tax Evasion and Elusion'

The European Parliament has published the Ex Post Impact Assessment entitled 'The Impact of Financial Services in EU Free Trade and Association Agreements on Money Laundering, Tax Evasion and Elusion'. It contains the study prepared by Olha Cherednychenko and Heinrich Winter (GCEFSL), together with the colleagues from the T.M.C. Asser Institute, for the European Parliament Committee on International Trade (INTA). The study investigates the implementation and effects of provisions on financial services in selected EU free trade and association agreements with third countries, with a particular focus on their propensity to facilitate money laundering, tax evasion and elusion. It concludes that the liberalisation of trade in goods and services, including financial services, with developing countries increases the threat of money laundering and is therefore likely to contribute to an increase in illicit financial flows from these countries to the EU. To reduce this threat, the study provides a number of policy recommendations.