Money Laundering from Environmental Crime

By The Financial Action Task Force (FATF)

Environmental crime covers a wide range of activities, from illegal extraction and trade of forestry and minerals to illegal land clearance and waste trafficking. Actors involved in these crimes vary from large organized crime groups to multinational companies and individuals. Perpetrators of environmental crime rely on both the financial and non-financial sector to launder their proceeds. The ‘low risk, high reward’ nature of environmental crime makes for a lucrative and safe source of revenue for criminals. This is partly due to a regulatory and legal environment that is not always consistent globally and does not fully address the financial aspects and money laundering (ML) risks of these crimes. The FATF conducted this study to strengthen awareness of the scale and nature of criminal gains and laundering techniques for environmental crimes. This study builds on the FATF’s 2020 report on financial flows from the illegal wildlife trade. It brings together expertise from across the FATF’s Global Network to identify good practices that governments and the private sector can take to disrupt the profitability of environmental crimes. The findings for this report are based on case studies and good practices provided by over 40 countries, alongside expertise from civil society and the private sector.

Paris: FATF, 2021. 70p.