By KPMG

This report of key findings (the 'Report') has been prepared by KPMG LLP. The Report was commissioned by Philip Morris Limited and Imperial Tobacco Australia Limited, described in this Important Notice and in this Report as together the 'beneficiaries', on the basis set out in a private contract agreed between the beneficiaries and KPMG LLP dated 29 November 2021 . This report has been prepared on the basis of fieldwork carried out between 01 December 2021 and 14 April 2022. The Report has not been updated for subsequent events or circumstances. Information sources, the scope of our work, and scope and source limitations are set out in the footnotes and methodology contained within this Report. The scope of our work, information sources used, and any scope and source limitations were fixed by agreement with the beneficiaries. We have satisfied ourselves, where possible, that the information presented in this Report is consistent with the information sources used, but we have not sought to establish the reliability of the information sources by reference to other evidence. We relied upon and assumed without independent verification, the accuracy and completeness of information available from public and third party sources. This Report is not written for the benefit any other party other than the beneficiaries. In preparing this Report we have not taken into account the interests, needs, or circumstances of any specific party, other than the beneficiaries. This Report is not suitable to be relied on by any party (other than· the beneficiaries), Any person or entity ( other than the beneficiaries) who chooses to rely on this Report (or any part of it) will do so at their own risk. To the fullest extent permitted by law, KPMG LLP does not assume any responsibility and will not accept any liability in respect of this Report other than to the beneficiaries. Without limiting the general statement above, although we have prepared this Report in agreement with the beneficiaries, this Report has not been prepared for the benefit of any other manufacturer of tobacco products nor for any other person or entity who might have ari interest in the matters discussed in this Report, including for example those who work in_ or monitor the tobacco or public health sectors or those who provide goods or services to those who operate in those sectors.

KPMG: 2022. 70p.

By BIS OXFORD ECONOMICS

The consumption of Illicit tobacco has become a substantial problem for Australia in recent years. With illicit tobacco offering higher profit margins than illegal drugs such as cocaine, it presents several significant problems for government and society, including: - depriving the government of tax revenues, reducing its ability to deliver basic services and valuable social programmes; - displacing legal activity within the retail, wholesale and logistics industries; and - corrupting institutions, enabling money laundering, and providing revenues for organised crime, including potentially financing terrorist activities. This study by BIS Oxford Economics, commissioned by British American Tobacco Australia (BATA), provides information on several key issues, namely: - assessment of the value of the legal supply chain; - estimation of the tax and industry; - legal economy losses to illicit operators; and - examination of the harms caused by illicit tobacco trade

Sydney: BIS Oxford Economics, 2021. 43p.

By The Environmental Investigation Agency (EIA)

Money Trails – Identifying financial flows linked to wildlife trafficking looks at the current state of play and makes the case for using financial investigations and anti-money laundering laws as standard when investigating wildlife crime.

It also features case studies from major EIA investigations which reveal widespread use of the formal financial system by wildlife crime syndicates and the important role banks can play in detecting and reporting suspicious transactions.

London; Washington, DC: EIA, 2020. 14p.

By Mark Gregory

Illegal logging is believed to account for between 15% and 30% of the international trade in timber. Revenues from timber crime are likely to run into billions of dollars each year. Data such as this has prompted the European Union (EU), the World Bank and others to call for tougher enforcement and more effective use of anti-money laundering (AML) procedures as a way of tackling the illicit financial flows that support illegal logging. Against this background, Fern carried out research to find out if action on money laundering could be a worthwhile lever to help preserve the world’s forests.

Brussels: FERN, 2015. 27p.

By Sam Lawson

Previous studies commissioned by the EU have shown that the EU has been leading the world in imports of ‘embodied deforestation’ in the form of agricultural and timber products. This study goes a step further, by showing that the EU is also one of the largest importers of products resulting from illegal deforestation. The study estimates that in 2012, the EU imported EUR 6 billion of soy, beef, leather and palm oil which were grown or reared on land illegally cleared of forests in the tropics – almost a quarter of the total world trade. The Netherlands, the UK, Germany, Italy and France are among the largest consumers of these illegally sourced deforestation commodities, being collectively responsible for two-thirds of EU purchasing by value and three-quarters in terms of the areas of forest destroyed.

Brussels: FERN, 2015. 28p.

By EIA

A report on the role of the Convention on International Trade in Endangered Species (CITES) in curbing illegal timber trade and protecting endangered tree species. Despite the success of its current CITES listing, endangered ramin remains under threat, with the remnants of Malaysia’s ramin forests exploited unsustainably. Although ramin is banned from cutting and export in Indonesia – the only other significant range state – stolen wood continues to be laundered through neighbouring Malaysia in quantities exceeding the global annual legal supply.

London; New York Environmental Investigations Agency, 2011. 17p.