Financial Crime and Corruption Haunt Asia-Pacific Region

The Asia-Pacific region is facing a significant challenge in the form of financial crime and corruption, with over 62 countries affected. According to the Corruption Perception Index (CPI), the average score for the APAC region has remained stagnant at 45 out of 100 for five years, with few countries showing significant improvements in corruption levels.

A Web of Illicit Activities

Illegal Fishing: A Growing Transnational Threat

• Estimated annual losses of $50 billion
• Indo-Pacific region is a hotspot for this clandestine activity
• Intersection with corruption, money laundering, and human trafficking becomes a catalyst for transnational crime

The Asia/Pacific Group on Money Laundering (APG) has issued a paper highlighting the need for governments to understand the ML/TF risks posed by illegal fishing. The report sets out recommendations to respond to the growing threat, including reclassifying illegal fishing as a serious transnational financial crime issue.

Southeast Asia: A Hub for Transnational Organized Crime

• Online gambling platforms and crypto exchanges have become vehicles for underground banking and money laundering
• Report by the United Nations Office on Drugs and Crime (UNODC) highlights convergence between online gambling, cyber fraud, money laundering, and human trafficking fueled by technology and increasingly sophisticated operations
• Failure to address this landscape will have consequences for Southeast Asia and other regions as organized crime reinvests to innovate, professionalize, and consolidate operations

Modern Slavery: A Vulnerable Region

• Victims face a range of serious violations and abuses
• Organized crime groups have diversified into new operations such as illegal fishing and cyber fraud, further exacerbating human trafficking and forced labor
• Significant gaps in legislative frameworks to combat modern slavery across the region, with corruption running rife