Hundreds of billions of dollars in illicit funds move through the global financial system each year through the operations of environmental crimes linked to transnational criminal organizations. Illegal mining, in particular, directly exposes global financial institutions (FIs) to a wide range of legal and compliance risks, as well as financial crimes, absent robust risk mitigation measures.
Research shows that environmental crimes have exposed FIs to money laundering, foreign corruption, tax evasion, sanctions evasion, and human rights abuses. “Illegal mining has become a systemic financial risk,” stated John Dodsworth, head of Deforestation Strategy at the World Wildlife Fund (WWF)-UK.
