FinCEN asks banks to boost scrutiny of environmental crime links
Dan Ennis, Banking Dive
November 19, 2021
The Financial Crimes Enforcement Network (FinCEN) issued its first-ever
advisory on environmental crimes Thursday, asking banks to scrutinize
transactions that may be linked to illegal logging, fishing and mining and
the trafficking of wildlife, waste and hazardous substances.
The push comes as the Biden administration looks to put a deeper emphasis
on fighting climate change and its causes. FinCEN, a watchdog within the
Treasury Department, said it is highlighting an uptick in environmental
crimes because of their close association with corruption and criminal
organizations — two sources of money laundering and terrorism financing the
agency already monitors.
FinCEN included in its advisory some instructions for banks to use when
filing suspicious activity reports related to environmental crimes, which
the agency said threatens ecosystems, decreases biodiversity and increases
the atmosphere’s quotient of carbon dioxide.
Specifically, FinCEN asks banks to provide details such as names,
identifiers and contact information — including Internet Protocol (IP) and
email addresses and phone numbers — of buyers or sellers and intermediaries
dealing in illicit products, plants, waste or related services. The agency
also seeks details on how the illicit goods are solicited, acquired,
stored, transported, financed and paid for, and where they begin and end
their journeys. FinCEN additionally wants to know of any beneficial owners
— shell companies — that may be involved.
The Financial Action Task Force cites environmental crimes as the
third-largest subset of illegal activity in the world, after drug
trafficking and the counterfeit-goods trade.
Revenue from environmental crimes is growing by 5% year over year, the
global police force Interpol estimated, adding that environmental crimes
such as the exploitation and theft of oil provide roughly 38% of illicit
income to armed groups — a larger proportion than drug trafficking.
FinCEN is looking to boost enforcement over environmental crimes because
the demand for such illicit goods is high — as are the rewards for
traffickers — but penalties are relatively light and the risk, because
enforcement has thus far been scarce, is low.
https://www.bankingdive.com/news/fincen-asks-banks-to-boost-scrutiny-of-environmental-crime-links/610364/
FinCEN asks banks to boost scrutiny of environmental crime links
Dan Ennis, Banking Dive
November 19, 2021
The Financial Crimes Enforcement Network (FinCEN) issued its first-ever
advisory on environmental crimes Thursday, asking banks to scrutinize
transactions that may be linked to illegal logging, fishing and mining and
the trafficking of wildlife, waste and hazardous substances.
The push comes as the Biden administration looks to put a deeper emphasis
on fighting climate change and its causes. FinCEN, a watchdog within the
Treasury Department, said it is highlighting an uptick in environmental
crimes because of their close association with corruption and criminal
organizations — two sources of money laundering and terrorism financing the
agency already monitors.
FinCEN included in its advisory some instructions for banks to use when
filing suspicious activity reports related to environmental crimes, which
the agency said threatens ecosystems, decreases biodiversity and increases
the atmosphere’s quotient of carbon dioxide.
Specifically, FinCEN asks banks to provide details such as names,
identifiers and contact information — including Internet Protocol (IP) and
email addresses and phone numbers — of buyers or sellers and intermediaries
dealing in illicit products, plants, waste or related services. The agency
also seeks details on how the illicit goods are solicited, acquired,
stored, transported, financed and paid for, and where they begin and end
their journeys. FinCEN additionally wants to know of any beneficial owners
— shell companies — that may be involved.
The Financial Action Task Force cites environmental crimes as the
third-largest subset of illegal activity in the world, after drug
trafficking and the counterfeit-goods trade.
Revenue from environmental crimes is growing by 5% year over year, the
global police force Interpol estimated, adding that environmental crimes
such as the exploitation and theft of oil provide roughly 38% of illicit
income to armed groups — a larger proportion than drug trafficking.
FinCEN is looking to boost enforcement over environmental crimes because
the demand for such illicit goods is high — as are the rewards for
traffickers — but penalties are relatively light and the risk, because
enforcement has thus far been scarce, is low.
https://www.bankingdive.com/news/fincen-asks-banks-to-boost-scrutiny-of-environmental-crime-links/610364/