Trillions of dollars may be missing from U.S. government coffers due to widespread corporate tax evasion and criminal money laundering strategies, according to Florida International University College of Business professor John Zdanowicz.
Called false invoicing, it is the same kind of scheme used to fund domestic terrorism by moving money into the U.S., and moving proceeds of illegal activities, such as drug profits, out of the United States undetected.
“Criminals and tax evaders have discovered that laundering money through the banking system is dangerous, especially with the new financial institution reporting requirements under the Patriot Act and other banking regulations,” Zdanowicz said. “However, moving money through international trade can be virtually undetectable.”
Zdanowicz, a noted international expert on money laundering and fraud, found that money moved out of the United States through abnormal pricing in international trade grew from $168.31 billion in 2003 to $230.58 billion in 2014, a more than 30 percent increase.