Haytham Alieh_Tarek Saad

COP 28 Insight: Money Laundering in Environmental Offenses 

With Suzan Taha

On the concluding day of COP 28, LegalcommunityMENA’s COP 28 Insight series continues, with a focus on the intersection of law, climate action, and financial integrity with Tarek Saad and Haytham Alieh, esteemed partners at BLK Partners, who have been pivotal in shaping the legal landscape addressing environmental crimes and their financial implications.  

Alieh and Saad share their expertise and perspectives on combating money laundering intricately linked to environmental crimes. 

Background 
At COP 28’s First Ministerial Forum, the UAE Ministry of Interior launched the “International Initiative of Law Enforcement for Climate” (I2LEC) in collaboration with the United Nations Office on Drugs and Crime. This pioneering initiative, part of the “Abu Dhabi Call to Action Support,” garnered support from five regional police organizations and 50 global law enforcement agencies. Over nine months, collaborative efforts resulted in seven major initiatives, emphasizing effective partnerships in addressing climate-related crimes.  

The UAE Ministry of Interior, along with the United Nations, prepared a research paper on environmental crimes and their mitigation strategies, shaping discussions at the 2024 Commission on Crime Prevention and Criminal Justice meeting in Vienna. Working with ESRI, they unveiled tools like the “Global Preparedness Assessment Model” and the “Heat Map of Environmental Crimes,” revealing troubling links between environmental crimes and money laundering, human trafficking, and drug trafficking.  

Can you elaborate on the significance of the UAE Ministry of Interior’s launch of the “International Initiative of Law Enforcement for Climate” (I2LEC) and its objectives in confronting climate change challenges? 

The United Arab Emirates (UAE) Ministry of Interior’s launch of the “International Initiative of Law Enforcement for Climate” (I2LEC) has garnered global attention, marking a significant step in addressing the complex challenges posed by climate change. The initiative’s objectives and the UAE’s leadership in spearheading this endeavor deserve closer examination: 

  • Global Collaboration and Leadership: The initiative demonstrates the UAE’s commitment to addressing climate change through proactive global collaboration. By partnering with the United Nations Office on Drugs and Crime (UNODC), the UAE Ministry of Interior is showcasing leadership in mobilizing law enforcement agencies worldwide to confront climate-related challenges. 
  • Strengthening Law Enforcement’s Role: The “Abu Dhabi Call to Action Support” underscores the commitment to strengthening the role of law enforcement agencies in combating environmental and climate-related crimes. This is crucial, as law enforcement plays a pivotal role in investigating and preventing activities that contribute to climate change, such as illegal deforestation, pollution, and wildlife trafficking. 
  • International Support and Cooperation: The wide international support for the Abu Dhabi Call to Action, involving 5 regional police organizations and 50 law enforcement agencies globally, highlights the importance of international cooperation in tackling climate-related crimes. These partnerships can enhance information sharing, joint initiatives, and a coordinated response to global environmental challenges. 
  • Research and Data-driven Approach: The preparation of a research paper on crimes affecting the environment and the role of law enforcement agencies is a strategic move. This research can serve as a valuable resource for policymakers and law enforcement authorities, providing evidence-based insights to guide decision-making and shape effective strategies. 
  • Innovative Tools and Analysis: Collaborating with the private sector partner, ESRI, to develop the “Global Preparedness Assessment Model” and the “Heat Map of Environmental Crimes” signifies a commitment to leveraging technology for a more informed response. These tools can help assess and visualize the extent of environmental crimes globally, enabling a targeted and data-driven approach. 
  • Addressing Interconnected Issues: The troubling initial results highlighting the links between environmental crimes and other criminal activities such as money laundering, human trafficking, and drug trafficking underscore the interconnected nature of these issues. By addressing environmental crimes, the initiative aims to disrupt funding sources for organized crime, terrorists, and rebel groups. 
  • International Forums and Advocacy: The commitment to present the research paper at the 2024 meeting of the Commission on Crime Prevention and Criminal Justice in Vienna indicates a commitment to participating in international forums and advocating for stronger legal frameworks and collaborative efforts in the fight against climate-related crimes. 
  • Capacity Building and Training: The specialized training programs held in cooperation with partners, benefiting over 40 countries, demonstrate a commitment to capacity building. Empowering law enforcement agencies globally through training enhances their ability to effectively address environmental crimes and contributes to climate change mitigation efforts. 

In summary, the launch of I2LEC by the UAE Ministry of Interior reflects a comprehensive and strategic approach to tackling climate change challenges by engaging law enforcement agencies globally, leveraging research and technology, and fostering international cooperation. The initiative aims not only to combat environmental crimes but also to address their broader societal impacts. 

The research paper from the UAE Ministry of Interior and the United Nations Office on Drugs and Crime highlights a link between environmental crimes and money laundering. How are these two types of crimes interconnected? 

The research paper highlights a disturbing yet undeniable link between environmental crimes and money laundering. This intricate relationship stems from the economic motivations underlying environmental exploitation and the financial mechanisms employed to conceal its illicit proceeds. Here’s how these two types of crimes are interconnected: 

  • Profit Motive: Many environmental crimes, such as illegal logging, wildlife trafficking, and illegal fishing, are driven by the desire for financial gain. Criminal organizations engage in these activities to exploit natural resources and wildlife, often in violation of environmental laws, regulations, and conservation efforts. 
  • Illegal Resource Exploitation: Environmental crimes involve the illegal extraction, trade, or exploitation of natural resources. Perpetrators aim to profit from these activities by evading legal restrictions and regulations. The financial gains derived from exploiting natural resources illegally create proceeds that need to be laundered to legitimize and integrate them into the economy. 
  • Complex Supply Chains: Environmental crimes often operate within intricate global supply chains. Criminal organizations may use elaborate networks to transport, process, and sell illegal goods derived from environmental exploitation. Money laundering techniques are employed to obscure the origins of funds generated through these activities. 
  • Front Companies and Shell Corporations: Criminals involved in environmental crimes may establish front companies or shell corporations to disguise the illicit origins of their proceeds. These entities may engage in seemingly legitimate business activities, making it challenging for authorities to trace the money back to its criminal source. 
  • Corruption and Bribery: In some cases, perpetrators of environmental crimes may engage in corrupt practices or bribery to facilitate their illegal activities. This corruption further complicates the ability of law enforcement to track and prosecute individuals involved in both environmental crimes and money laundering. 
  • Global Markets and Demand: The demand for illegal environmental products, such as exotic wildlife, timber, or minerals, often comes from global markets. Criminal organizations exploit this demand to generate substantial profits. Laundering the proceeds allows them to integrate these funds into the formal economy without attracting suspicion. 
  • Transnational Nature: Both environmental crimes and money laundering are often transnational in nature. Criminal organizations may operate across borders to exploit resources in one country and launder the resulting proceeds in another. This complexity requires international cooperation among law enforcement agencies to effectively address these interconnected issues. 
  • Funding Organized Crime and Terrorism: The profits from environmental crimes, once laundered, can provide a significant source of funding for organized crime groups and, in some cases, terrorist organizations. This further underscores the seriousness of the link between environmental crimes and money laundering. 

In summary, the link between environmental crimes and money laundering is established through the financial incentives associated with the illegal exploitation of natural resources. Money laundering allows criminals to legitimize and enjoy the proceeds gained from environmentally harmful activities while complicating efforts to trace and prosecute these illicit financial flows. Addressing this nexus requires comprehensive strategies that integrate environmental protection, law enforcement, and financial regulation. 

Could you provide examples of environmental crimes that have been specifically linked to money laundering, and what challenges do law enforcement agencies face in addressing this connection? 

Environmental crimes, often driven by profit motives, involve the exploitation of natural resources and wildlife, generating substantial illicit proceeds that require laundering to integrate into the legitimate financial system. 

Examples of environmental crimes linked to money laundering include: 

  • Illegal Logging: Criminal organizations engage in the illegal felling and trade of timber, laundering proceeds through front companies and complex financial transactions. 
  • Wildlife Trafficking: Profits from the illegal trade of endangered species, such as ivory and exotic animals, are often laundered to conceal the illicit origins of funds. 
  • Illegal Fishing: Organizations involved in illegal, unreported, and unregulated (IUU) fishing may launder money to legitimize proceeds from the sale of illegally caught fish. 
  • Illegal Mining: Criminal groups exploit natural resources like minerals or precious metals illegally, with money laundering used to conceal the proceeds from the sale of these resources. 
  • Waste Trafficking: Illegal dumping or trafficking of hazardous waste can generate profits, and money laundering may be employed to legitimize these ill-gotten gains. 
  • Challenges for Law Enforcement: 
  • Global Complexity: Environmental crimes often involve activities across multiple jurisdictions, making it challenging for law enforcement to coordinate efforts internationally. 
  • Lack of Resources: Law enforcement agencies may face resource constraints in terms of personnel, technology, and funding, limiting their ability to investigate and combat the connection between environmental crimes and money laundering. 
  • Sophisticated Methods: Criminal organizations employ sophisticated methods, including shell companies and complex financial transactions, making it difficult for authorities to trace and prove the link between environmental crimes and money laundering. 
  • Corruption: Corruption within law enforcement agencies or among public officials can impede efforts to investigate and prosecute individuals involved in both environmental crimes and money laundering. 
  • Inadequate Legislation: Legal frameworks may not be sufficiently robust to address the evolving nature of environmental crimes and money laundering, leaving gaps in enforcement. 
  • Limited International Cooperation: Inconsistent international cooperation and information sharing hinder efforts to track and apprehend individuals involved in these interconnected criminal activities. 
  • Dynamic Nature of Crimes: Environmental crimes and money laundering techniques evolve, requiring law enforcement agencies to adapt and stay ahead of new methods employed by criminal organizations. 
  • Need for Interdisciplinary Collaboration: Addressing the link between environmental crimes and money laundering requires collaboration between environmental agencies, financial institutions, and law enforcement, which can be logistically challenging. 
  • Public Awareness: Limited public awareness about the environmental impacts of certain activities and their connection to organized crime can hinder efforts to garner public support and cooperation. 
  • Technological Challenges: The use of advanced technologies, cryptocurrencies, and encrypted communication by criminal networks poses additional challenges for investigators seeking to trace and track illicit financial transactions. 

In summary, the challenges faced by law enforcement in addressing the connection between environmental crimes and money laundering stem from the global and dynamic nature of these activities, resource constraints, and the need for interdisciplinary collaboration and international cooperation. 

Proceeds from environmental crimes are noted as a funding source for organized crime, terrorists, and rebel groups. How can authorities disrupt the financial channels associated with these crimes? 

The illicit proceeds generated from environmental crimes pose a significant threat to global security, providing a substantial funding source for organized crime groups. These criminal organizations exploit natural resources and wildlife, generating immense profits that they then seek to launder into the legitimate financial system. To effectively address this challenge, authorities must implement a comprehensive approach that disrupts the financial channels associated with environmental crimes including: 

  • Enhanced Financial Intelligence: Strengthen intelligence gathering on financial transactions associated with environmental crimes through collaboration between law enforcement, financial institutions, and intelligence agencies. 
  • International Cooperation: Foster collaboration between countries to share information, coordinate investigations, and implement consistent measures against money laundering linked to environmental crimes. 
  • Strict Regulatory Measures: Implement and enforce robust regulations and reporting requirements for financial institutions to detect and report suspicious transactions related to environmental crimes. 
  • Asset Forfeiture: Utilize asset forfeiture laws to seize and confiscate proceeds from environmental crimes, depriving criminal organizations, terrorists, and rebel groups of their ill-gotten gains. 
  • Public-Private Partnerships: Collaborate with the private sector, including financial institutions and technology companies, to enhance monitoring capabilities and develop tools for detecting and preventing financial flows associated with environmental crimes. 
  • Capacity Building: Invest in training and building the capacity of law enforcement agencies to effectively investigate and prosecute financial aspects of environmental crimes. 
  • Leverage Technology: Employ advanced technologies, including data analytics and blockchain, to trace and track financial transactions associated with environmental crimes. 
  • Enhanced Border Controls: Strengthen border controls and customs enforcement to detect and prevent the smuggling of illegal goods associated with environmental crimes, disrupting the associated financial flows. 
  • International Legal Frameworks: Advocate for and participate in the development of international legal frameworks that facilitate the prosecution of those involved in money laundering related to environmental crimes. 
  • Public Awareness: Raise public awareness about the connection between environmental crimes and illicit financing, encouraging cooperation and reporting of suspicious activities. 

In summary, disrupting financial channels associated with environmental crimes involves a multi-faceted approach, including improved intelligence, international collaboration, regulatory measures, asset forfeiture, and leveraging technology. 

In your opinion, what role does international cooperation play in tackling the financial aspects of environmental crimes, especially considering their transnational nature? 
International cooperation plays a vital role in tackling the financial aspects of environmental crimes, particularly considering their transnational nature. The interconnectedness of environmental crimes and their globalized nature demand a collaborative approach that transcends national boundaries. 

International cooperation is crucial for: 

  • Information Sharing: Facilitating the exchange of financial intelligence and information between countries to trace and track illicit financial flows associated with transnational environmental crimes. 
  • Coordination: Coordinating efforts among law enforcement agencies globally to investigate and prosecute individuals involved in money laundering linked to environmental crimes. 
  • Consistent Regulations: Establishing and enforcing consistent international regulations and reporting standards for financial institutions to detect and report suspicious transactions related to environmental crimes. 
  • Unified Legal Frameworks: Developing unified legal frameworks that enable countries to extradite and prosecute individuals involved in the financial aspects of environmental crimes across borders. 
  • Capacity Building: Collaborating on capacity-building initiatives to enhance the skills and capabilities of law enforcement agencies worldwide in investigating and combating the financial aspects of environmental crimes. 

In summary, international cooperation facilitates a unified and coordinated approach to address the transnational financial aspects of environmental crimes, ensuring that efforts to combat these crimes are effective on a global scale. 

The “Abu Dhabi Call to Action Support” aims to strengthen the role of law enforcement agencies in combating environmental crimes. How does this initiative address the financial dimensions, including money laundering? 

The initiative is designed to address the financial dimensions, including money laundering, of environmental crimes. It aims to strengthen the role of law enforcement agencies in combating these crimes by addressing the following key areas: 

  • Enhanced Training: Providing specialized training for law enforcement agencies to better understand and combat the financial aspects of environmental crimes. 
  • Collaboration with Financial Institutions: Fostering partnerships between law enforcement and financial institutions to improve monitoring and reporting of suspicious transactions related to environmental crimes. 
  • International Cooperation: Promoting international collaboration to share financial intelligence and coordinate efforts in investigating and prosecuting individuals involved in money laundering associated with environmental crimes. 
  • Regulatory Measures: Advocating for and implementing robust regulations and reporting requirements for financial institutions to detect and report illicit financial flows linked to environmental crimes. 

Incorporating these elements can contribute to strengthening the role of law enforcement in addressing the financial dimensions, including money laundering, within the broader context of combating environmental crimes. 

Are there specific regions or sectors where the financial aspects of environmental crimes, including money laundering, pose more significant challenges, and what strategies can be employed to address them? 
Yes, there are specific regions and sectors where the financial aspects of environmental crimes, including money laundering, pose more significant challenges. These include: 

Regions: 

  • Amazon Rainforest: Illegal logging and mining activities in the Amazon region may involve complex financial networks, requiring enhanced international cooperation and surveillance. 
  • Southeast Asia: Wildlife trafficking and illegal fishing in Southeast Asia may be linked to money laundering, necessitating strengthened regional collaboration and regulatory measures. 

Sectors: 

  • Natural Resource Extraction: Illegal exploitation of minerals and precious metals poses financial challenges; addressing this requires industry collaboration, supply chain transparency, and technological solutions like blockchain. 
  • Wildlife Trafficking: Illicit trade in exotic animals demands international cooperation, public-private partnerships, and advanced monitoring technologies to track financial flows. 

Strategies: 

  • Global Information Sharing: Establish international platforms for financial intelligence sharing to track and trace funds associated with environmental crimes. 
  • Public-Private Partnerships: Collaborate with financial institutions and technology companies to develop tools and technologies for detecting and preventing money laundering linked to environmental crimes. 
  • Capacity Building: Invest in the capacity building of law enforcement agencies in affected regions to enhance their skills in investigating the financial aspects of environmental crimes. 
  • Unified Regulatory Frameworks: Advocate for consistent international regulations and reporting standards for financial institutions, especially those operating in regions prone to environmental crimes. 
  • Technology Adoption: Embrace advanced technologies, such as blockchain and data analytics, to enhance transparency and traceability in financial transactions associated with environmental crimes. 

Addressing the financial dimensions of environmental crimes in these regions and sectors requires a comprehensive approach that combines international collaboration, targeted regulations, technology integration, and capacity-building efforts. 

The “Global Preparedness Assessment Model” assesses countries’ readiness to confront environmental crimes. How does financial preparedness factor into this assessment, and what improvements can be made? 

This assessment considers a country’s ability to detect and investigate financial flows linked to environmental crimes, the strength of its regulatory framework, and its engagement in international cooperation. Financial preparedness in the model likely involves evaluating a country’s ability to: 

  • Detect and Investigate Financial Flows: Assess the effectiveness of financial institutions and law enforcement agencies in detecting and investigating financial transactions linked to environmental crimes. 
  • Regulatory Framework: Evaluate the strength of regulatory frameworks in place to combat money laundering associated with environmental crimes. 
  • International Cooperation: Consider the country’s engagement in international cooperation, information sharing, and collaboration with other nations to address the financial dimensions of environmental crimes. 

There are certain improvements that can be implemented, such as: 

  • Strengthen regulatory frameworks to ensure they are comprehensive and up to date. 
  • Enhance the capacity of financial institutions and law enforcement agencies to combat money laundering related to environmental crimes. 
  • Foster greater international collaboration and information exchange to address cross-border financial flows linked to environmental crimes. 

Improvements should focus on building robust financial systems and fostering international cooperation to effectively tackle the financial dimensions of environmental crimes. 

The “Heat Map of Environmental Crimes” provides a global perspective on the effects of these crimes. How can the financial repercussions be visualized on such a map, and what insights can it offer to combat money laundering? 

By incorporating financial indicators into the map, it can provide a comprehensive understanding of the impact of environmental crimes, enabling policymakers, law enforcement agencies, and environmental organizations to make informed decisions and prioritize resources accordingly. These indicators include: 

  • Visual Representation: Utilizes colour gradients to visually represent the severity or prevalence of environmental crimes globally. 
  • Key Indicators: Highlights areas with higher incidences of illegal activities such as deforestation, wildlife trafficking, and pollution. 
  • Global Overview: Offers a comprehensive and accessible view of the distribution and intensity of environmental crimes, aiding in understanding their global impact. 
  • Decision Support: Assists policymakers, law enforcement, and environmental agencies in allocating resources and prioritizing interventions based on the severity of environmental crimes in different regions. 

Visualizing Financial Repercussions on “Heat Map of Environmental Crimes” 

  • Colour Intensity: Darker shades represent higher financial repercussions, indicating areas with more significant money laundering associated with environmental crimes. 
  • Insights for Combatting Money Laundering: The map can pinpoint regions where financial impacts are most pronounced, guiding targeted interventions, resource allocation, and collaborative efforts to combat money laundering linked to environmental crimes. 

Human trafficking linked to climate change-induced displacement is identified as a common crime. How does money laundering play a role in the financial aspects of human trafficking within the context of environmental changes? 

Criminal networks exploit vulnerable populations displaced by climate change, forcing them into human trafficking and using the proceeds to finance their illicit activities. It can be used as: 

  • Funding Source: Proceeds from human trafficking linked to climate-induced displacement serve as a source of funds for criminal networks. 
  • Concealing illicit Gains: Money laundering techniques are employed to legitimize and conceal the illicit financial gains derived from exploiting vulnerable populations affected by environmental changes. 
  • Complicating Tracing Efforts: Money laundering complicates law enforcement efforts to trace and disrupt the financial channels associated with human trafficking, hindering effective intervention and prosecution. 

As environmental crimes become more complex, involving financial intricacies, what measures can be implemented to enhance the capacity of law enforcement agencies to investigate and combat money laundering in these cases? 

The increasing complexity and financial intricacies of environmental crimes necessitate enhanced measures for law enforcement agencies to effectively investigate and combat money laundering in these cases. These measures can be categorized into six key areas: 

  • Specialized Training: Provide targeted training programs for law enforcement to build expertise in investigating financial aspects of environmental crimes and money laundering. 
  • Technological Tools: Equip agencies with advanced technologies, such as data analytics and blockchain, to enhance the capability to trace and track financial transactions. 
  • International Collaboration: Foster international cooperation to share intelligence and resources, facilitating a more comprehensive approach to tackling transnational financial aspects of environmental crimes. 
  • Legislative Frameworks: Strengthen and update legal frameworks to address evolving financial tactics employed in environmental crimes, providing law enforcement with the necessary tools for prosecution. 
  • Public-Private Partnerships: Collaborate with financial institutions and private sector entities to leverage expertise and resources in combating money laundering linked to environmental crimes. 
  • Capacity Building: Invest in overall capacity building, including recruitment, retention, and skill development of law enforcement personnel focused on financial investigations related to environmental crimes. 

About Tarek Saad 

A seasoned legal expert with over 29 years of experience in general litigation in EMEA, including a 17-year tenure in the UAE. His expertise spans a wide range of legal disciplines, including high-profile commercial litigation, maritime disputes, insurance claims, civil cases, real estate matters, criminal proceedings, labour disputes, and intellectual property matters. 

Saad’s specialization in maritime law is particularly noteworthy, as he has successfully managed a vast array of cases before the local courts of Dubai and Abu Dhabi. He is also a member of the Dubai Council for Marine & Maritime Industries (DCMMI) and serves as a Board Member of the Consultants for the Abu Dhabi School of Law. 

Tarek’s extensive educational background and professional qualifications further solidify his position as a legal authority in the region. He holds a bachelor’s degree in law from Ain Shams University (Cairo, Egypt) and a Diploma in Maritime Law from the Arab Academy for Science Technology & Maritime Transport (Alexandria, Egypt). Additionally, he is admitted to the Egyptian Bar Association (with a right of audience in all Egyptian Courts) and to the Egyptian Maritime Association. 

About Haytham Alieh 

A highly accomplished legal professional with over 27 years of experience in general litigation across the GCC and the Middle East, with a particular focus on the UAE market. His expertise encompasses a wide range of legal disciplines, including civil, criminal, banking, real estate, transportation, and commercial law. 

Alieh’s specialization includes enforcing arbitral awards and foreign judgments within the UAE courts, a testament to his expertise in international legal matters. His experience in nullifying arbitration awards, resolving multimillion-dollar commercial litigations, and advising on labour, property, real estate, and environmental laws in complex construction disputes has earned him a reputation as a prominent legal authority. 

Alieh’s academic contributions are equally impressive, as he is a co-author of five legal books on business, commercial, and criminal laws in the Middle East. His knowledge and expertise have transcended the classroom as he has shared his insights as a lecturer at the Dubai Legal Affairs Department and various law program institutions in the UAE. 

Alieh has an LL.B. from the Lebanese University (Beirut, Lebanon) and is a member of the Beirut Bar Association. 

suzan.taha@lcpublishinggroup.it

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