Environmental crime in Asia: How you can make a difference

Environmental crime not only harms the planet but also poses a threat to global security. What can be done to help combat it? Duncan Taylor investigates.   

What is an environmental crime?

Environmental crime is a term used to describe any illegal activities that harm the environment. These include illegal logging, fishing and mining, wildlife trafficking, pollution, poaching, waste trafficking, forest degradation and environmental corruption.

Sadly, environmental crime is on the rise.

The 2023 Environmental Crime Convergence Report from Earth League International estimates a year-on-year increase in environmental crime of 5-7%. The Financial Action Task Force (FATF) estimates the revenue from these activities at anywhere between $110 and $ 281 billion each year.

The impact of environmental crime

These crimes are not only highly profitable, but they also have a devastating impact on the planet and pose a key threat to global security.

The implications stretch far beyond damage to natural habitats such as the degradation of ecosystems, the loss of biodiversity and the depletion of natural resources. Environmental crime also negatively affects economic, social, and political systems.

Economically, environmental crime undermines legitimate businesses, distorts markets, and deprives governments of tax revenues, which can hinder sustainable development.

Socially, it often exacerbates poverty and displaces communities, particularly in regions where local livelihoods depend on natural resources.

Politically, environmental crime can fuel corruption, weaken governance, and contribute to conflicts, especially in areas where the rule of law is already fragile.

Moreover, the global nature of environmental crime means that its impacts are felt across borders, requiring coordinated international efforts to address these challenges effectively.

Although they have taken a back seat to other financial crimes, the enormous human cost and the threat to the survival of our planet are compelling reasons for governments, the FATF, companies and individuals to pay more attention to them.

Environmental crime in Asia

Asia is a hotspot for environmental crimes due to its rich biodiversity and natural resources.

Logging, wildlife trafficking and pollution threaten Asia’s biodiverse ecosystems and the livelihoods of millions of people who depend on these natural resources for food, medicine, and income.

Illegal exploitation of Asia’s natural resources including timber, fish and minerals undermines legitimate industries, leads to revenue losses for governments and local communities, negatively impacts tourism. Not to mention the astronomical cost of environmental restoration and disaster management.

Indigenous and rural communities are disproportionately impacted by environmental crime in Asia. Land grabbing, illegal logging, and pollution can displace these communities, leading to loss of homes, cultural heritage, and traditional livelihoods. This can exacerbate poverty and social inequality, creating a cycle of exploitation and vulnerability.

These dangers should be a significant concern for businesses and individuals alike.

Five ways you can help combat environmental crime

If you live in Asia, you can help the collective effort to combat environmental crime. Here are some actions you can take to help protect the region’s rich natural heritage and ensure a sustainable future for all.

Report illegal activities

If you encounter or suspect an environmental crime, report it to the relevant authorities or environmental organisations. Providing evidence and information can be critical in stopping illegal activities.

Advocate for stronger enforcement of environmental laws

support efforts to track and recover proceeds from environmental crimes, ensuring that offenders face serious consequences.

Volunteer

Get involved in local conservation projects or environmental NGOs. Volunteering your time and skills can make a significant impact on grassroots efforts to protect the environment.

Support eco-tourism

Promote and participate in eco-friendly tourism practices, which help preserve natural areas while providing economic benefits to local communities.

Choose ethical products

Support businesses that adhere to ethical environmental standards by purchasing eco-friendly and sustainably sourced products.

How Infinity is helping to combat environmental crime

The financial sector plays a crucial role in combating environmental crime and we take this very seriously at Infinity. The management team is committed to ensuring that we are fully compliant with local environmental laws, not only because non-compliance can lead to fines, reputational damage, and legal consequences, but also because we are passionate about protecting the planet and doing our bit to maintain global security.

A major problem in the financial sector is the laundering of the profits of environmental crime in plain sight. Criminals are quick to exploit any weaknesses in anti-money laundering (AML) frameworks. That’s why we are constantly reviewing our policies to address any gaps and detect anomalies as early as possible.

We do understand that clients can find some of our questions intrusive, so I’d just like to explain why we carry out the checks that we do.

Know Your Customer (KYC) guidelines are in place to ensure that financial service companies collect sufficient information about customers’ identities, sources of wealth and business relationships. When we query where funds came from or ask for an extra piece of ID, we are not simply being nosy or pedantic; these questions are designed to help us identify money laundering red flags and escalate concerns, and we are obliged to ask them. Obviously, for the vast majority of our clients, there is no suspicious activity, and no further action is taken.

Similarly, AML regulations dictate that we conduct thorough customer due diligence checks, particularly on those deemed to be high-risk, including politically exposed persons (PEPs) and clients involved in complex or large transactions. As an Infinity client, you may be required to provide extensive personal information and documentation when opening an account or conducting certain transactions. This could lead to delays in account opening or transaction processing if the required documents are not promptly provided.

In summary, environmental crime in Asia poses a serious threat to the continent’s natural heritage, economic stability, social fabric, and political integrity, with consequences that resonate both regionally and globally. KYC and AML policies are vital for maintaining the integrity of the financial system so please be patient with us and play your part in the fight.