Money Laundering in British Indian Ocean Territory: A Growing Concern Amidst Illegal Wildlife Trade
The British Indian Ocean Territory (BIOT) is home to some of the most biodiverse regions globally, making it a hotspot for illegal wildlife trafficking. The convergence of illegal drug trade and similar smuggling routes further exacerbates this problem.
Combating Money Laundering in the Region
A recent anti-money laundering workshop was held in Mauritius, bringing together law enforcement teams from all Indian Ocean Commission (IOC) member states, including Comoros, France (Réunion), Madagascar, Mauritius, Seychelles. The two-day event was jointly organized by the IOC and TRAFFIC under the Countering Corruption and Wildlife Trafficking project, funded by USAID and led by the World Wild Fund for Nature.
Examples of Illegal Wildlife Trafficking
Illegal wildlife trafficking in the Indian Ocean region has been staggering. For example, Eddy Maminirina was arrested in Madagascar in 2019 for his connection to illegal rosewood trade, with allegations that 100 million Malagasy Ariary ($22,000) was laundered from the illegal export of rosewood.
The Need for Cooperation
The workshop highlighted the need for cooperation between IOC member states. Recent cases such as the seizure of 400 tortoises from Madagascar in Comoros illustrate the transnational nature of wildlife trafficking and the critical need for collaborative efforts to address it.
How Wildlife Traffickers Launder Money
Money laundering by wildlife traffickers involves hiding the true sources of earnings from illegal sales of endangered plants or animals. They often spend laundered money on legitimate assets such as cars, jewelry, or housing, which are easily further traded and where controls are lax.
Combating Money Laundering: Next Steps
To combat this issue, Hanitra Ralivololona, TRAFFIC Legal Officer, emphasized the importance of gathering information on criminal activities. “To stop our precious plants and animals being pushed to extinction through illegal trade, we are bringing together all those who work in law enforcement in our region, so we can piece together the jigsaw revealing massive-scale money-laundering happening behind wildlife trafficking in our region.”
Outcomes from the Workshop
The workshop resulted in concrete actions such as:
- Parallel financial investigations for any illegal wildlife trade offenses
- Creation of an information exchange network between countries
- Establishment of a WhatsApp group for immediate communication and information exchange, sharing information on trafficking routes and laundering methods
Capacity Building
Capacity building is also essential for law enforcement agencies in these countries to effectively identify protected species, conduct proactive financial investigations, and enhance regional cooperation. Establishing a protocol of cooperation for joint investigations and regional cooperation will be critical in tackling this issue effectively.
Conclusion
Combating money laundering in the British Indian Ocean Territory requires a collaborative effort between law enforcement agencies, governments, and international organizations. By sharing information and resources, we can work together to protect endangered species and prevent illegal wildlife trafficking.