Environmental Crime Typologies

Environmental crime can generate significant illicit proceeds and can overlap with corruption, organised crime, trade fraud, tax crime and cross-border smuggling. This page provides defensive AML typology context only.

1. Scope #

FATF materials discuss laundering linked to environmental crimes such as illegal logging, illegal land clearance, illegal mining and waste trafficking. Wildlife trafficking is also a related environmental-crime area.

2. AML relevance #

Environmental crime matters for AML because proceeds may enter the financial system through trade, commodities, logistics, cash-intensive businesses, shell companies, corrupt licensing and false documentation.

3. Risk signals #

Area Defensive risk signal
Commodity High-value natural resources, timber, minerals, waste or wildlife-linked goods
Documentation Inconsistent permits, invoices, origin documents or shipment routes
Geography Extraction, transit or sale linked to high-risk areas
Counterparty Shell companies, opaque intermediaries, politically connected parties
Payments Payment route inconsistent with goods route or business profile

4. Evidence sources #

  • trade documents;
  • permits and licences;
  • corporate registry records;
  • adverse media;
  • sanctions/debarment checks;
  • environmental regulator or enforcement records where available;
  • FATF typology materials.

5. Source basis #