Money Laundering and the Illegal Wildlife Trade

 Money Laundering and the Illegal Wildlife Trade 

How illicit finance enables biodiversity crime — and what data tells us about scale, linkages and policy responses

Executive summary

The illegal wildlife trade (IWT) is a lucrative transnational crime that generates billions in illicit proceeds each year and is tightly linked with other organized criminal activity — including money laundering. Although proceeds from wildlife crime are small relative to global money-laundering flows, they have outsized impacts on biodiversity, governance and local communities. Recent global reporting (UNODC, INTERPOL, CITES) estimates the IWT market in the low tens of billions USD annually, while international agencies estimate that 2–5% of global GDP is laundered each year — roughly trillions of USD. This article lays out the numbers, a short statistical analysis, common laundering typologies used in wildlife crime, notable enforcement signals, and recommended actions for policymakers and financial institutions.

 

1. The scale: numbers and context

Key headline figures

• Money-laundering scale: International bodies estimate that between 2% and 5% of global GDP is laundered annually — a range commonly cited by UNODC/Europol analyses (this corresponds to trillions of USD per year).
• Illegal wildlife trade (IWT) value: Recent UNODC/INTERPOL/CITES reporting places the global illegal wildlife market at roughly USD 8–23 billion per year (estimates vary by methodology and commodities); many sources use figures around USD 10–23 billion.
• Scope of IWT harms: The UNODC World Wildlife Crime Report (2024) documents trafficking across ~162 countries and affecting ~4,000 species.
• Quick interpretation

Even at the high end for IWT (≈USD 20 billion) compared with conservative global money-laundering estimates (≈USD 2.22 trillion), wildlife proceeds represent less than 1% of global laundered funds — but their consequences for ecosystems and local governance are disproportionately severe. (See the short percentage calculations in §3 below.)

 

2. Data table — headline figures (selected sources)

Indicator	Value (approx.)	Source
Global money laundering (share of world GDP)	2% – 5% of global GDP (~USD 2.2 – 5.5 trillion)	UNODC / Europol summaries.
Illegal wildlife trade (annual market)	USD 8 – 23 billion (commonly cited range; many estimates ~USD 10–20B)	INTERPOL / UNODC / WEF summaries. I
Species affected (2015–2021 seizure analysis)	~4,000 species recorded in trafficking datasets	UNODC World Wildlife Crime Report 2024.
Countries affected	>160 countries with documented trafficking routes	UNODC.
Example recent seizure	1,600+ parrots & canaries seized (Lagos airport, Jul 2025)	AP News (case example).

 

3. Short statistical analysis (how big is wildlife money within global laundering?)

Using representative values from the literature:

• Take a mid/high IWT figure: USD 20,000,000,000 (USD 20 billion).
• Compare to estimated laundered volume (low bound) USD 2,220,000,000,000 (USD 2.22 trillion).

Percent = (20,000,000,000 / 2,220,000,000,000) × 100 ≈ 0.90%.

Using the laundered high bound (USD 5.54 trillion), percent = (20,000,000,000 / 5,540,000,000,000) × 100 ≈ 0.36%.

Using IWT lower bound USD 8B and laundering 2.22T → ~0.36%. Using IWT upper bound USD 23B and laundering 5.54T → ~0.42%.

Interpretation: IWT proceeds are well under 1% of global laundered flows by value, but this masks concentration effects (certain trafficking syndicates move high-value commodities like rhino horn/ivory) and the localized importance of illicit proceeds for fueling corruption, armed groups and further crimes. (Calculations derived from cited UNODC/Europol/INTERPOL ranges.)

 

4. How wildlife crime money is laundered — common typologies

1. Cash smuggling and physical cross-border transfer. High-value wildlife items (ivory, rhino horn, exotic pets) are sold in cash; proceeds are moved physically across borders to less regulated jurisdictions.
2. Trade-based money laundering (TBML). Criminals use falsified invoices, misdeclared cargo, or layering through legitimate import-export businesses to disguise proceeds from wildlife exports
3. Integration via legitimate businesses. Illicit cash is mixed into hospitality, export companies, or transport/logistics firms to create an appearance of legitimate revenue.
4. Use of online markets and crypto for layering. Growing use of online marketplaces (including encrypted channels) and, in some cases, cryptocurrency to obscure trails and cross borders.

5. Evidence of linkages: why money laundering matters for IWT enforcement

• UNODC and INTERPOL highlight that wildlife trafficking is increasingly organized and professional, with corruption and money laundering enabling networks to persist. Tackling the finance side can disrupt the operational capacity of traffickers.
• Seizures and prosecutions often show cross-border laundering chains, and high-value seizures (e.g., baby orangutans, large ivory seizures) indicate the involvement of organized groups that need financial infrastructure to move profits.

6. Policy responses & practical steps (data-driven)

For governments / regulators

• Include wildlife trafficking as a predicate crime in Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) frameworks (so suspicious activity reports can be filed). UNODC and FATF guidance supports integrating environmental crime into AML risk assessments.
• Improve trade data analytics to detect TBML signals (invoice anomalies, mismatches between reported goods and known species flows). Use customs + financial intel linkages.
•  
• For financial institutions

• Risk-based AML controls should flag customers and sectors linked to known wildlife trafficking routes (certain exporters, travel agencies involved in live animal transport, shell companies in high-risk jurisdictions). Leverage typologies from enforcement agencies.

For enforcement & civil society

• Follow-the-money investigations: fund and train joint financial-forensic teams to map laundering networks supporting wildlife crime. UNODC emphasizes financial investigations as high-impact interventions.

7. Case signals and enforcement highlights

• Recent high-profile seizures (e.g., large shipments of live birds at Lagos, recovered baby orangutans in Thailand) show continuing demand and trafficking sophistication; prosecutions increasingly reference cross-border payments and courier networks — opportunities to trace financial flows.

8. Limitations of data & what’s missing

• IWT is under-reported and methods for valuing illicit wildlife markets vary widely (black-market values, species scarcity premiums, local vs international price differences). That drives the broad USD 8–23B range in published estimates
• Global money-laundering estimates are imprecise (range 2–5% of GDP) because much laundering is hidden and only partially observable through seizures, STRs and investigations.

 

9. International Organizations and Global Cooperation

United Nations Office on Drugs and Crime (UNODC)

• UNODC’s World Wildlife Crime Report 2024 documents trafficking across 162+ countries and stresses the need to integrate wildlife trafficking into money laundering predicate offenses.
• Through its Global Programme for Combating Wildlife and Forest Crime, UNODC provides training and coordinates financial investigations in Asia, Africa, and Latin America.

Financial Action Task Force (FATF)

• FATF issued its first global report on money laundering from environmental crime (2020), estimating wildlife crime proceeds in the billions annually.
• Over 200 jurisdictions committed to FATF standards now include wildlife trafficking under Anti-Money Laundering/Counter-Terrorism Financing (AML/CFT) frameworks.

INTERPOL & World Customs Organization (WCO)

• INTERPOL’s Operation Thunder 2023 spanned 125 countries, seizing more than 600 tons of wildlife and timber products.
• INTERPOL highlights the trade-based money laundering (TBML) techniques behind these crimes and has built joint task forces to trace cross-border payments.

Convention on International Trade in Endangered Species (CITES)

• Ratified by 184 countries, CITES provides the legal backbone for prosecuting illegal wildlife trade.
• CITES collaborates with the World Bank’s Global Wildlife Program to mobilize over USD 210 million in financing for enforcement capacity in developing countries.

World Bank & IMF

• The World Bank’s Global Wildlife Program (GWP) (2015–2025) operates in 37 countries, supporting financial intelligence and community resilience against trafficking.
• IMF technical assistance helps low-income countries improve AML supervision in high-risk sectors, including trade in natural resources.

 

10. Role of Foreign Countries

United States

• The U.S. Treasury (FinCEN) flagged wildlife trafficking as a priority AML threat in 2021.
• The U.S. Fish and Wildlife Service reported seizures valued at USD 1.3 billion (2018–2023).

China

• One of the largest demand markets for ivory, pangolin scales, and exotic pets.
• Since 2017, China has banned domestic ivory trade, but illicit demand persists through underground and online markets.

European Union

• The EU is both a consumer and transit hub. Europol estimates that wildlife crime is among the top 5 environmental crimes generating money-laundering risks.
• The EU launched its Action Plan against Wildlife Trafficking (2022–2026), funding cross-border investigations with €1 billion+ in support through environmental and security programs.

African Countries

• Countries like Nigeria, South Africa, and Kenya are hotspots for wildlife poaching and smuggling routes.
• Nigeria was cited in FATF reports for cash-based laundering of wildlife proceeds, with seizures of 7 tons of pangolin scales and ivory (2022).

Southeast Asia

• Thailand, Vietnam, and Laos are key transit and consumer hubs.
• Vietnam Customs reported seizing over 50 tons of pangolin scales and ivory (2015–2022), often laundered through shell trading companies.

 

11. Statistical Snapshot — Global Involvement

Entity / Region	Scale of Involvement	Data Highlights
UNODC	162+ countries tracked	Global wildlife crime report 2024
INTERPOL (Thunder 2023)	125 countries	600+ tons of seizures
CITES	184 member countries	Legal trade controls & enforcement
World Bank GWP	37 countries	USD 210M+ mobilized
U.S.	USD 1.3B seizures (2018–23)	Wildlife AML priority
EU	€1B+ for action plan	Transit & consumer hub
China	Major demand market	Ivory ban in 2017, but illicit trade persists
Africa (Nigeria 2022)	7 tons of pangolin & ivory seized	High TBML risk
Vietnam	50 tons seized (2015–22)	Transit & shell company laundering

Recent Data & Incidents (2025 / Late 2024 → Early 2025)

Incident / Source	Key Data	Significance / Notes
Operation Thunder 2024 (coordinated by INTERPOL & WCO, results reported Feb 2025)	- Nearly 20,000 live animals seized globally. - 365 suspects arrested. - Six transnational criminal networks identified. - Species include ~12,427 birds; 5,877 turtles; 1,731 other reptiles; 33 primates; 18 big cats; 12 pangolins. - 2,213 seizures globally.	Shows that global cooperation has scale, species range, transnational networks. This is one of the largest recent global operations. Helps identify hotspots and modus operandi.
Nigeria – Parrots & Canaries Seizure	More than 1,600 parrots and canaries seized from Lagos Airport destined for Kuwait.	Indicates active trafficking of live birds, use of passenger/air routes, major transit country; enforcement is catching high-volume shipments.
India – Seizures & Regional Trends	- In “Illegal Wildlife Trade Newsletter: January 2025”, 65 seizure incidents collected; highest number in Assam (14), Tamil Nadu (8), Maharashtra (7). - Bengaluru airport (2024-25) had 23 seizures of exotic species (versus 10 in Chennai). Mumbai rising too. Over 600 animals seized from passengers; 24 arrests. - Species seized include pangolin, big cats (tiger, leopard), elephants, marine species, non-native species, turtles.	Suggests shifting hubs within India (Bengaluru increasing importance), diverse species trafficked, involvement of passenger traffic; importance of state and regional level enforcement.
EU Seizure / TRAFFIC report	- In 2023 (but we see trends reported in 2025 about 2023 data), nearly 5,200 wildlife trafficking seizure records reported in the EU. - Over 1 million specimens involved (including >600,000 live animals; ~10,000 live plants). - The number was up from approx 4,550 the prior year.	The EU continues to be a major hub of seizures and transit points; species diversity; this provides useful baseline to compare 2024-5 data.
Global decline / shifts	- Report by Wildlife Justice Commission: trafficking of pangolin scales & elephant ivory has seen a sharp decline in large-scale seizures since 2020. - But criminals appear to shift tactics, possibly moving to smaller shipments, more hidden channels.	Suggests that while big busts are fewer, trafficking continues in fragmented or less detectable ways. Possibly more financial laundering / online trade / small consignments.

 

Gaps & What’s Not Yet Known (for 2025)

• Reliable, global numbers for the proceeds of wildlife-crime laundered in 2025 are not yet published. Most estimates lag by a year or more.
• Data on money laundering specifically tied to wildlife crime in 2025 is sparse; most reports focus on seizures and arrests, less on tracing finances.
• Many seizure reports are for late 2024 (Operation Thunder, etc.) — so unless updated, 2025 statistics may still be incomplete.

 

Implications of 2025 Data (Emerging Trends)

1. Diversification of species and goods trafficked — Not just the “classic” ivory, rhino horn; more live animals (birds, reptiles, turtles), exotic pets, timber, plants.
2. Higher involvement of passenger movement and air travel — seizures at airports, baggage, live animals in suitcases etc.
3. Hub shifts and regional hotspots — e.g., India: Bengaluru overtaking Chennai; Nigeria continuing as key transit; EU countries with high numbers of seizure records.
4. Smaller consignments, more dispersed networks — Possibly in response to enforcement of large seizures; criminals may be adapting by moving smaller volumes.
5. Greater awareness and cross-border cooperation (e.g. Operation Thunder, TRAFFIC reports) are enabling more seizures and arrests; but the need remains to strengthen financial investigations and digital/online trade tracking.

Here’s the forecast graph showing trends of illegal wildlife trade (in billions USD) compared with global money laundering flows (in trillions USD) from 2020–2025.

Here’s the extended 2020–2030 forecast graph comparing illegal wildlife trade (in billions USD) with global money laundering flows (in trillions USD).

It projects a steady rise in both:

·         Illegal Wildlife Trade could climb from ~$10B in 2020 to ~$34B by 2030.

·         Money Laundering flows may rise from ~$2.5T in 2020 to ~$5.2T by 2030

 

 

 

. Closing Remarks

While the illegal wildlife trade represents less than 1% of global laundered money, its impact on ecosystems, governance, and security is disproportionately severe. Forecasts suggest both illicit finance and wildlife trade will continue growing unless stronger cross-border enforcement, financial tracking, and community-driven conservation efforts are adopted. Tackling the money trail is as critical as seizing shipments—it cuts the foundation of organized crime networks.

 

 

 

 

References (selected)

• UN Office on Drugs & Crime — World Wildlife Crime Report 2024. UNODC+1
• INTERPOL / World Economic Forum reporting on illegal wildlife trade values and organized crime links. Interpol+1
• Europol / UNODC summaries on global money-laundering estimates (2–5% of GDP). Europol+1
• U.S. Treasury — 2024 National Money Laundering Risk Assessment. U.S. Department of the Treasury
• Recent news / enforcement examples: AP News; Mongabay. AP News+1