Recent emergence of the “Money Laundering and the Illegal Wildlife Trade” report by the Financial Action Task Force (FATF) serves as a stark warning for the international community. This first global report on the Illegal Wildlife Trade (IWT) outlines the complex nature of this crime, voicing concerns that it could catalyze more zoonotic diseases in the future. The report underscores IWT’s worrying links with organised crimes like modern slavery, drug trafficking and arms trade.
The Nature of Transnational Organised Crime
The IWT is not operated by isolated criminal groups; instead, it forms a significant component of a larger framework of transnational organised crime that bolsters corruption, jeopardizes biodiversity and has serious public health impacts. The illegal trade is said to rake in revenues up to $23 billion a year. The 2016 UN World Wildlife Crime report revealed that criminals are illicitly trading products obtained from over 7,000 species of wild animals and plants worldwide.
Origin and Route of Illegal Wildlife Trade
Countries abundant in biodiversity, typically with weaker law enforcement oversight and less stringent criminal justice, often emerge as origin countries for IWT. In an attempt to blur their end destination, criminals transit the wildlife through multiple countries. These transit countries usually comprise of trade and transport hubs or nations with higher corruption levels. Proceeds from these activities are laundered across the source, transit and destination countries.
Common Illegal Wildlife Trade Methods
Criminals involved in IWT tend to depend on “established” laundering methods for their ill-gotten proceeds. They make use of mobile or social media-based payments, third party payments and utilize the formal financial sector for placement and layering of funds. In an effort to evade detection, criminals often use accounts of unsuspecting victims for high-value payments. Shell and front companies are also used to obscure payments and launder money.
Illegal Wildlife Trade’s Role in Spread of Zoonotic Diseases
The surge of zoonotic diseases has underlined the critical need for wildlife trade to be legally regulated, safe, and sustainable. Countries must take action to eradicate profitability from illegal markets. Although the exact link between pangolin trading and the Covid-19 outbreak is yet to be confirmed, the price of pangolins has soared with a 100% to 600% mark-up. India, too, has been recognized as a source country for illegal pangolin trade.
Challenges Faced in Curbing Illegal Wildlife Trade
A major obstacle in combating IWT is the lack of adequate knowledge, legislative support, and resources to assess and resist the threat posed by funds generated through this illegal trade. The partial focus on IWT’s financial side has largely impeded jurisdictions’ ability to identify and penalize IWT networks. This crime further leaves other industries more susceptible to misuse, including traditional medicine, décor and jewelry, and fashion.
Recommendations and Possible Measures
Countries should weigh adopting good practices such as equipping all relevant agencies with necessary mandates and tools; and fostering cooperation with other countries, international bodies, and the private sector. Legislative changes are needed to expand the scope of anti-money laundering laws to include offences linked to the illegal wildlife trade.
A Step Towards a Sustainable Future
The ruinous impact of the illegal wildlife trade on our wildlife and global ecosystem necessitates urgent action. It’s crucial to ensure the survival of endangered species, and establish robust public-private partnerships to prevent, detect, and disrupt IWT, targeting the illegal money fuelling it and taking down the organized crime gangs, poachers, and traffickers behind it.
