The nexus of environmental crimes and money laundering/terrorist financing: effectiveness of the FATF recommendations against green criminology in developing jurisdictions

Nasir Sultan, Nikos Passas, Norazida Mohamed, Dildar Hussain and Suzana Sulaiman

Journal of Money Laundering Control, 2025, vol. 28, issue 3, 485-503

Abstract: Purpose - This study aims to investigate the impact of the financial action task force (FATF) recommendations and their practical implementation on green criminology in Pakistan. Design/methodology/approach - This study used a qualitative case study technique to achieve the study’s objective. Findings - According to the study, criminals in Pakistan are misusing natural resources to finance terrorism and launder environmental crime (EC) proceeds. Criminals frequently exploit environmental assets as a medium of exchange, and trade-based money laundering is widely used to transport natural assets to dodge taxes and regulatory checks. Furthermore, due to political instability, porous borders, a poor anti-money laundering framework, lax application of customer due diligence measures, corrupt politically exposed persons, an undocumented economy, frequent usage of hawala/hundi and a lack of political interest, Pakistan provides a favourable environment for ECs. This situation, combined with the low quality of laws and law enforcement’s lack of ability, resources and training, heightens the intensity of the problem. The overall effectiveness of the FATF recommendations against ECs in Pakistan is ineffective. Consequently, a solid domestic and international coordination and collaboration structure is needed for effective combat. Research limitations/implications - The study primarily relied on published data. Practical implications - The overall effectiveness of the FATF recommendations against ECs in Pakistan is ineffective. Consequently, a solid domestic and international coordination and collaboration structure is needed for effective combat. Originality/value - There has been little research on the effectiveness of the FATF recommendations against ECs, especially in the global south.

Keywords: Money laundering; Financial action task force; Environmental crimes (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jmlcpp:jmlc-08-2024-0142

DOI: 10.1108/JMLC-08-2024-0142

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