The intergovernmental Financial Action Task Force (FATF) endorsed a proposal by the Chinese government to tackle financial flows funding illegal wildlife trade.

The trade is driving many species to the brink of extinction. The illegal industry earns an annual profit of between 7 and 23 billion U.S. dollars annually, making it one of the most lucrative transnational organized crime, estimated a UN report. The illegal trade also boosts drugs trafficking.

A recent survey by the United Nations Office on Drugs and Crime (UNODC) revealed that 86 percent of the 45 jurisdictions reported being affected by wildlife crime, but only 26 percent of countries decided to conduct financial investigations to track the transactions. The anti-money laundering laws were used in only one percent of cases.

With enforcement response in many countries inadequate to control such dealings, powerful tools such as anti-money laundering measures could be deployed to curb such transactions to curb illegal wildlife trade, the FATF members said.

Appalled over the dismal scenario, the Financial Action Task Force (FATF) plenary meeting that concluded in Paris on Saturday endorsed the proposal by the Chinese government to act against money laundering activities linked to the wildlife trade. China holds the year-long presidency of the organization.

"This project will analyze common supply chains and payment methods, as well as case studies from countries that have experience in investigating the financial flows from illegal wildlife trade," said a statement released by FATF.

The role of public-private partnerships and international cooperation in combating crime would also be under the scanner. The project would be completed by June next year.
"Anti-money laundering measures represent a crucial but under-used tool in the fight against the organized crime groups driving endangered species towards oblivion for profit," said Julian Newman, campaigns director of Environmental Investigation Agency (EIA).

The agency pointed out that when major seizures of contraband wildlife, such as ivory or pangolin scales, happen, the focus is more on publicizing the event rather than looking at the financial picture around it.
"Yet these consignments are worth millions of dollars and that money is not moving around as just cash but intersects with the global financial system," Newman added.

The FATF was created in 1989 by G7 countries to develop policies and strategies to combat money laundering that funds illegal activities, including terrorism.