Yellen Announces Initiative with Amazon Basin Governments to Combat Illicit Nature Crimes

U.S. Treasury Secretary Janet Yellen has unveiled a new initiative in collaboration with Amazon basin governments aimed at disrupting illicit finance that fuels nature crimes. These crimes include the illegal harvesting of trees, plants, minerals, and wildlife. Speaking on Saturday, Yellen emphasized the goal of this initiative is to enhance cooperation among finance ministries, law enforcement agencies, and other entities from Brazil, Colombia, Ecuador, Guyana, Peru, Suriname, and the United States. The initiative seeks to improve training for detecting illicit finance networks operating within the region.

Yellen, in her announcement in Belem, Brazil—set to host the COP 30 climate conference in 2025—stated that these efforts could lead to sanctions on responsible groups, effectively severing their access to the dollar-based financial system. “Globally, nature crimes are estimated to generate proceeds in the hundreds of billions of dollars annually and often entail misusing and abusing the U.S. financial system,” Yellen said. She added that such trafficking disrupts the ecological balance of the Amazon rainforest, harms local communities' livelihoods, and affects national economies in the region.

The Amazon Region Initiative Against Illicit Finance aims to bolster training, cooperation, and information-sharing, enabling law enforcement and finance agencies to conduct money-laundering investigations against transnational criminal organizations, drug cartels, and other groups. The U.S. and Brazil will organize a regional meeting in the coming months to set the group’s priorities. Additionally, the Treasury will host “follow-the-money” training sessions to enhance investigators' skills, Yellen announced.

Furthermore, the U.S. Treasury will engage in joint investigations with participating countries against entities behind nature crimes. Yellen acknowledged the significant challenges ahead, stating, “There is much more work to do.” She added, “But bolstering coordination between the United States and our regional partners will help protect the integrity of the international financial system, while also targeting a major threat to biodiversity.”

The Treasury’s 2024 National Money Laundering Risk Assessment highlights the overlap of nature crimes with corruption, drug trafficking, and transnational organized crime. In May 2024, the Treasury released the 2024 Illicit Finance Strategy, outlining actions to counter nature crimes, such as illegal logging and wildlife trade. The strategy prioritizes targeted measures and coordination to disrupt illicit finance activities. In April 2024, the Financial Crimes Enforcement Network (FinCEN) issued guidance urging financial institutions to be vigilant against environmental crimes, which frequently involve transnational criminal activity.

Through the Amazon Region Initiative, the U.S. plans to build on the Belém Declaration and strengthen international cooperation in combating nature crimes. The initiative includes four key components:

1. Treasury, in coordination with Brazil, will organize a regional meeting to enhance cooperation on disrupting illicit finance linked to nature crimes. This event will gather representatives from government authorities in Brazil, Colombia, Ecuador, Guyana, Peru, Suriname, and the United States. The U.S. aims to strengthen the framework for regional cooperation, aligning ongoing efforts and setting priorities.

2. Treasury will conduct “follow the money” trainings in the region to enhance the capabilities of financial intelligence units, law enforcement, and other key stakeholders in pursuing money laundering investigations against transnational criminal organizations, drug cartels, and other illicit actors involved in nature crimes.

3. Treasury will improve information sharing with regional partners to identify illicit finance associated with nature crimes. Given that illicit finance transcends national boundaries, collaborative solutions are essential to dismantling barriers between national authorities. The prominence of the U.S. dollar and financial system in international trade and finance underscores the United States’ pivotal role.

4. The initiative aims to catalyze increased information sharing in support of joint investigations involving corrupt actors, criminal organizations, drug traffickers, and others engaged in illicit activities often linked to nature crimes.

By fLEXI tEAM