The UAE is ramping up its crackdown on financial crimes related to wildlife trafficking and environmental damage ahead of the COP28 UN climate conference in Dubai this November, a government official told Arabian Business.
Director-General of the UAE’s Executive Office of Anti-Money Laundering and Counter Terrorism Financing, Hamid Al Zaabi, said that illegal wildlife trade (IWT) has emerged as a top financial crime threat in 2023.
“The UAE will focus more on financial crimes relating to climate change, in particular Illegal Wildlife Trade,” he said.
“Over one million species will go extinct over the coming decade if we do not change course.”
IWT is a major transnational organised crime, which generates billions in criminal proceeds per year. Traffickers exploit weaknesses in the financial and non-financial sectors to move, hide, and launder money, enabling further wildlife crimes and damaging financial integrity.
These crimes fuel corruption, poverty, and insecurity. It also threatens biodiversity and can have a significant impact on public health and the global economy – all pertinent issues that are more relevant today than ever before as the world continues to grapple with the environmental and economic impact of climate change.
“One of the major threats to nature is over-exploitation, including through wildlife poaching and trafficking,” Al Zaabi explained.
“1.7 million undiscovered viruses are thought to exist in wild animals, about half of which could spill over to people, including through illegal trade, markets, and consumption.”
“If we include all species of wild animals and plants being trafficked, the World Bank puts the value of wildlife trafficking at about $200 billion annually. If we add the costs of the impacts on ecosystem, and in particular their ability to sequester carbon, then the World Bank estimates the value at a staggering figure of $1 to 2 trillion a year.”
As it stands currently, the World Bank estimates that governments are losing up to $12 billion annually through lost revenues – a topic which will be “a subject of serious discussion” at COP28 – which will run from November 30 to December 12 in Dubai – he said.
Hazem Mulhim, CEO and Founder, Eastnets based the UAE’s priority on this issue.
“Environmental crime is worth around $110 to 281 billion per year to the criminal community,” he said.
“Fortunately the UAE is aware of this trend in financial crime and environmental crime overlap and has joined forces with the United Nations, Interpol, and other global entities to tackle this heinous crime trend.”
Mammals like elephants, rhinos, big cats, and primates are especially vulnerable as they are targeted for their high-value parts like ivory and skins, according to the International Union for Conservation of Nature Red List. Reptiles however, such as turtles, tortoises, and snakes also face heavy pressure due to demand for their meat and shells used in medicine and jewelry.
Traffickers primarily obtain these animals from areas in Africa and Southeast Asia where weak enforcement has led to over-exploitation of natural resources. Countries in these regions like Kenya, South Africa, Vietnam, and Malaysia have emerged as hubs for the illegal trade due to their proximity to operations and poorly regulated marketed, several reports suggest.
Meanwhile, environmental crime as a whole generates hundreds of billions of dollars annually through activities like illegal fishing, logging and waste. Areas with lax governance and abundance of natural wealth such as the Amazon in South America and South Asian jungles have higher rates of these extractive crimes.
FATF calls on governments to prioritise IWT
To more effectively tackle the financial aspects of wildlife trafficking, the FATF has provided guidance to governments on key actions that should be taken. Authorities need to prioritise countering the money flows linked to illegal wildlife trade in a manner commensurate with the scale of the risks. Law enforcement and investigative agencies require robust mandates as well as the proper tools and training to conduct thorough financial probes related to wildlife crime cases.
In a 2020 report, the FATF also urged the need for stronger coordination between environmental and financial authorities to ensure information is regularly shared and the financial trails associated with trafficking networks can be uncovered and disrupted.
No country can fight such a transnational threat alone, the body stressed. Robust international cooperation between jurisdictions, as well as partnerships with inter-governmental groups and private sector entities will be pivotal.
Follow us on
