This section contains information relating to the following types of jurisdictions, predominantly those operating in one of the following capacities:
Countries can operate in more than one capacity (e.g. as both source and transit countries).
This toolkit focuses on 34 countries across Southeast Asia and Pacific, Sub-Saharan Africa, and South and Central America, as three of the highest-risk and most forest-dense regions.
Close attention should be paid to the geographical source and destination of financial transactions, as well as the transit routes of any related physical products, which may indicate illicit activity (e.g. criminals may reroute illegally derived commodities through certain countries in an attempt to obscure their origins).
For more information on the financial crime risks typologies associated with particular commodities in specific countries, please see the Risk Assessment toolkit panel.
High-risk source countries for the products of land conversion by region
Transactions originating in the following source countries for the products of land conversion should be considered higher risk. However, please note that these are not intended to be exhaustive lists, and that not all transactions under each of these categories are necessarily linked to illicit activity.
High-risk transit countries for the products of land conversion by region
High-risk trade routes for the products of land conversion
The following table provides a breakdown of certain trade routes, including transit countries and ports, as they relate to particular high-risk commodities.
This is not intended to be an exhaustive list but rather an indicative sample that demonstrates how companies can use such data and resources to map out risk exposure and identify relevant red flags within their business areas.
For more information on how certain commodities and proceeds of land conversion linked financial crime are laundered or transit through certain countries and key routes, please refer to the Risk Assessment panel of the toolkit.
High-risk destination countries for the products of land conversion by region
High-Risk Source Countries: Shipments or transactions from regions known for land conversion issues. Refer to the Risk Assessment panel in the toolkit for details.
Politically Exposed Persons (PEPs): Transactions involving PEPs from higher-risk areas are a red flag. Check the Risk Assessment panel for specifics.
Offshore and Higher-Risk Jurisdictions: Be cautious of intermediaries or shell companies based in these locations. Consult the toolkit for more information.
Low Penalty Regions: Transactions from countries with minimal penalties for environmental crimes warrant extra scrutiny.
Conflict Zones Rich in Resources: Watch for shipments from conflict-prone areas abundant in resources like minerals and timber.
Drug Cartel Presence: Watch for transactions from resource-rich countries where drug cartels are active or where there has been a recent crackdown on drug crimes, leading to diversification into natural commodities.
Increased Local Crime: Transactions from countries with rising crime rates around forested or protected areas may indicate higher risks.
Money Laundering Risk Zones: Monitor transactions involving jurisdictions flagged for money laundering activities, such as those on the FATF Black or Grey Lists.
The Environmental Crimes Financial Toolkit is developed by WWF and Themis, with support from the Climate Solutions Partnership (CSP). The CSP is a philanthropic collaboration between HSBC, WRI and WWF, with a global network of local partners, aiming at scaling up innovative nature-based solutions, and supporting the transition of the energy sector to renewables in Asia, by combining our resources, knowledge, and insight.
