The interaction between environmental and financial crime – What do businesses need to know?   

Activities that result in harm to the environment are increasingly being criminalised. Activities such as illegal logging, deforestation and wildlife trafficking are no longer viewed solely as breaches of environmental law. Environmental offences are increasingly being recognised as predicate crimes for money laundering. This means that profits derived from environmental harm can trigger liability under anti-money laundering (AML) frameworks, even where companies are not directly involved.

Environmental crime is the fourth largest criminal activity globally, generating an estimated US$110bn to US$281bn annually. These figures really highlight the scale of this issue. Consideration is increasingly being given to how frameworks relating to financial crime can be used to tackle environmental crimes. Parallel to these developments, a specific offence of ecocide is being introduced, signalling a shift towards criminal liability for severe environmental harm.   

Businesses need to be thinking about integrating environmental risk assessments into AML programmes as well as monitoring their supply chains for risks associated with illegal environmental practices. As environmental harm becomes increasingly criminalised, businesses should consider the steps being taken to mitigate the legal and reputational risks including conducting due diligence.

In our recent publication we address:

• what is environmental crime?
• tackling environmental crime as financial crime
• how environmental harm is being criminalised
• what companies need to be thinking about

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Date published: 26 November 2025