DEPUTISING BANKS: FINCEN ACTS TO TACKLE ENVIRONMENTAL CRIME
Environmental crime is the third largest illicit activity across the globe, estimated to generate hundreds of billions in illicit proceeds annually, according to the Financial Action Task Force (FATF). In its 2021 report ‘Money Laundering from Environmental Crime’, the FATF outlines the scale, nature and typologies of environmental crimes, the summation of which causes significant and illegal degradation of the environment.
According to the report, these crimes, among others, include: (i) illegal logging, which involves the harvesting, processing, transporting, buying or selling of timber in contravention of domestic and international laws; (ii) illegal land clearing, which concerns the illegal acquisition and clearing of land either for farming, building or real estate speculation; (iii) forestry crime, which is an umbrella term to describe criminal activity in the forestry sector covering the entire supply chain, from harvest and transportation to processing and selling, including illegal logging and land clearance; (iv) illegal mining, which refers to mining activity that is undertaken without state permission (in absence of land rights, mining licences and exploration or mineral transportation permits) or mining activity with state permission obtained through corruption; and (v) waste trafficking, which includes the illegal export or illicit disposal of electronic waste (e-waste), plastics and hazardous substances, among others.
Apr-Jun 2022 Issue
Fraser Tennant