Investigations honing in on money laundering have achieved significant success on several fronts in Illicit Wildlife Trade (IWT).
This is according to a recent report by the Banking Association of South Africa (Basa) as law enforcement authorities, aided by international co-operation, are honing in on IWT, which is run by highly organised syndicates.
IWT has threatened wildlife species globally for many years and is considered the world’s fourth largest internationally organised crime, which the the World Economic Forum values at between $7 - $23 billion (R433bn).
IWT investigations extend mainly to abalone, succulent plant trafficking, lion bone products, reptile trafficking, and donkey skins.
The report of the Expert Working Group (EWG) of the South African Anti-Money Laundering Integrated Task Force (Saamlit) revealed that much of the dramatic decline in poaching of rhino in the Kruger National Park could be attributed to the impact of Project Blood Orange, which was recognised as a significant contributor to the drop in poaching in the area, 40% in 2022 and 49% in the first half of 2023.
In the previous year, the specialisation on money laundering had aided in the arrest of 26 of 132 rhino horn traffickers, with 13 people arrested for money financial flows associated with IWT in South Africa, according to the report.
The most significant progress was evidenced by successful case investigations, including the arrest of 16 members of a rhino horn syndicate for money laundering and financial crimes through Project Blood Orange, as well as the five-year conviction of an associate in a rhino horn syndicate.
In 2022, 132 arrests were made for rhino poaching – 23 of these in Kruger National Park's Skukuza area in Mpumalanga, 49 in KwaZulu-Natal and the balance in Limpopo.
Money laundering and bribing of rangers had led to 62 prosecutions in 2022..
The report said tactical operation groups had worked actively on these cases, alongside the Directorate for Priority Crime Investigation (DPCI), National Prosecuting Authority and forensic accountants from KPMG.
Background
The report noted, “Since the formation of Samlit, the EWG’s understanding of IWT has progressed from basic comprehension to a level of competence where members can identify and disrupt financial flows, use financial information to develop a picture of the broader network involved, and play an active role in successful IWT investigations and convictions.”
In investigating illicit money laundering, it was noted that cellphone messages, including WhatsApp, bank transactions, laptops and lifestyle enhancements provided significant information
Colonel Johan Jooste, national section commander, Serious Organised Crime: Wildlife Trafficking, DPCI, said, “If we cannot succeed in this vital mission of partnerships, criminals will continue moving their ill-gotten funds through the financial system in a transnationally undisturbed way, ensuring the expansion and increased power for their criminal organisations and enterprises.”
BUSINESS REPORT