EU cites terror risks as it clamps down on free ports

The European commission has clamped down on free ports or free zones after identifying that their special tariff and duty status has aided the financing of terrorism.

Authorities across the EU have been obliged since 10 January to take extra measures to identify and report suspicious activities at the ports and zones as a result of the ‘high incidence of corruption, tax evasion, criminal activity’.

It coincides with the UK government announcing that up to 10 new innovative free ports will be opened across the UK as it seeks to level up the country and seize on the opportunities leaving the EU has presented. Free ports or free zones are a type of special economic zone (SEZ) where business and trade laws differ from those in the rest of the country. There are 82 free ports across the countries that are subject to European Union regulations.

The EU’s executive branch will review the issue again next year owing to the popularity of such ports among high-net-worth individuals and criminal organisations seeking to circumvent recent crackdowns on bank secrecy.