WASHINGTON—Wildlife trafficking. Illegal mining. Hazardous substance trafficking. They are all known as “environmental crimes,” and according to the \ Department of the Treasury, financial institutions have a role to play in helping to slow the rise in such activities.
Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a warning about an uptick in these crimes and their associated unlawful financial activities.
According to FinCEN, it is highlighting the trend due to its ties to corruption and criminal organizations, both FinCEN priorities, as well as a need to enhance reporting and analysis of these sorts of financial crimes and their contribution to the climate crisis, Pymnts.com reported.
“Global environmental crimes are estimated by some international organizations to generate hundreds of billions [of dollars] in illicit proceeds annually and now rank as the third-largest illicit activity in the world following the trafficking of drugs and counterfeit goods,” FinCEN said in a statement.
The organization cited figures from Interpol in the release estimating that the total proceeds from these crimes are growing by 5% per year.
“These crimes are relatively low-risk activities with high rewards because enforcement efforts are limited, demand for the products and services generated by these crimes is high, and criminal penalties are not as severe as for other illicit activities,” FinCEN said in the release.