The long supply chains of contemporary global trade expose countries all over the world to the products and proceeds of environmental crime. This section identifies commodities traded in high-risk jurisdictions, particularly those operating in the following capacities:
Countries or regions that produce and export high levels of commodities, goods, and products with links to environmental crime.
Countries or regions serving as intermediaries for the transit/transport of the products of environmental crime or their associated illicit financial flows.
Countries or regions that purchase high levels of goods linked to environmental crime.
Note: Countries can operate in more than one capacity
(e.g. as both source and transit countries).
Financial institutions should pay close attention 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).
Some general geographic red flag indicators include:
High-risk geographic origins
Shipments or transactions from high-risk source countries or regions, as detailed below.
Involvement of locations identified as key transit hubs or destination countries for the products of environmental crime.
Transactions from countries with low penalties for environmental crimes.
Conflict and instability
Shipments from countries experiencing current conflict and rich in natural resources (e.g. minerals, timber).
Transactions from natural resource-rich countries with high drug cartel presence.
Activity from regions where crackdowns on drug crimes may have incentivised diversification into natural commodities.
Governance and security indicators
Involvement of politically exposed persons (PEPs) from higher-risk countries and regions.
Use of intermediaries or shell companies registered in offshore or higher-risk jurisdictions.
Shipments from natural resource-rich countries where local crime rates around forest-dense regions or protected areas have increased.
Money laundering risk
Commodities transported to or from jurisdictions designated high-risk for money laundering (e.g., FATF Black List or Grey List countries).
This resource focuses on 65 high-risk countries for deforestation, illegal mining, and the illegal wildlife trade. It also includes information on countries whose supply chains are linked to these high-risk jurisdictions.
For more information on the financial crime risks typologies associated with particular commodities in specific countries, please see the Risk Assessment. This map is under constant development. New information is always emerging and there may be recent sources of data that have not yet been incorporated into this resource. It is intended to be used as an indicative guide only and to prompt further investigation and research.
Further information on sources can be downloaded here.
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.
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.
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
