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Illicit Wildlife Trade in Southeast Asia Evolution, Trajectory and How to Stop It

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Illicit Wildlife Trade in Southeast Asia Evolution, Trajectory and How to Stop It Contributor: Name Lastname Illicit Wildlife Trade in Evolution, Trajectory Southeast Asia and How to Stop It This material is offered free of charge for personal, official, educational and non-commercial use, provided the source is acknowledged. The material may not be altered prior to dissemi- nation in any way. For further information please contact [email protected] Copyright: Analytical Centre of Excellence on Trafficking (ACET), 2019 TABLE OF CONTENTS Executive Summary 3 Challenges 3 Opportunities 4 Evolution of Wildlife Trafficking in Southeast Asia and China 5 Wildlife Business Trends in Southeast Asia and China: Past, Present, and Future 5 Signs Of Poaching Spikes On Horizon: China In 1980’s 5 Sourcing Evolution 6 North Korean Connection 6 China Expands Direct Sourcing 7 Enforcement Affects Supply Chains 7 Vietnam: Sub-Contract Role for Chinese Companies 8 Thailand as an International Hub 8 Laos: Trafficker Haven and Entrepôt 10 Traffickers Adapt to Increased Thai Enforcement 10 Enforcement Up, Supplies Down: Asian Traffickers Look to Africa 11 African and Asian Dealers Connect 13 2010-Present: Disruption and Displacement 13 Evolution of the Counter-Wildlife Trafficking Response 15 Networks to Counter Trafficking Networks 15 ASEAN-WEN and Its Working Groups 16 Capacity Building with ASEAN-WEN 17 Phase II of ASEAN-WEN Support – the ARREST Program 17 Operation Cobra I 19 Operation Cobra II 19 Operation Cobra III 19 Overall CWT Results (2006-2016) 19 ASEAN Beyond 2020 – Which Direction Can CWT Efforts Go? 21 Current Status of Illicit Trafficking 21 Why Illicit Trafficking Chains Continue 21 Main Countries in the Africa–ASEAN Supply Chain 21 Priority Agencies in Key Countries 22 Networking is Key 22 Best Platforms and Mechanisms to Sustain and Improve CWT Networking 22 Strategic Recommendations 25 Strategic Approach 25 Conclusion 31 LIST OF ABBREVIATIONS USED IN THIS REPORT ACB ASEAN Centre for Biodiversity OSINT Open-Source Intelligence ACET Analytical Center of Excellence PCU Program Coordination Unit on Trafficking AEG ASEAN Expert Group on CITES PR Public Relations AML Anti-Money Laundering PROTECT Protected-area Operational AMLO Thailand Anti-Money Laundering & Tactical Enforcement Office Conservation Training ASEAN Association of Southeast Asian Nations R&D Research and Development CCTV Closed-Circuit Television RIACM Regional Investigative and Analytical Case Meeting CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora SAP Strategic Action Plan CTOC Counter Transnational Organized Crime SE South East CWT Counter Wildlife Trafficking SFA China’s State Forestry Administration DEA US Drug Enforcement Administration SIG Special Investigation Group DETECT Detection of Environmental Crime Training UNODC United National Office on Drugs DNP Thailand Department of National and Crime Parks USAID US Agency for International ENV Education for Nature - Vietnam Development FIU Financial Intelligence Unit USFWS United States Fish and Wildlife ID Identification Service IDEC International Drug Enforcement Conference WCO World Customs Organization JJ Jatujak (Chatuchak) Weekend WCS Wildlife Conservation Society Market LATF Lusaka Agreement Task Force WEN Wildlife Enforcement Network ML Machine Learning WIRE Wildlife Inter-Regional Enforcement Meeting MPS Ministry of Public Security NGO Non-Governmental Organization XTC Xaysavang Trading Company Executive Summary ASEAN is being confronted with a serious threat to its people and environment. Wildlife trafficking, worth billions of dollars annually, is destroying nature and harming society. It is strengthening corruption, under- mining governance along the supply chain, and weakening security for affected communities. The strong demand for wildlife products from within the region, and neighboring China, is inadequately addressed by a developing criminal justice sector. Determined, innovative and holistic counter measures are needed across the region. Currently, enforcement against wildlife criminals in Southeast Asia all too often results in seizures without arrests, very few convictions, low CTOC Lusaka, Zambia (February 2018) “Converging interna- penalties, or no penalties at all. In a nutshell: tional law enforcement covering the supply chains of the trade trafficking in ASEAN remains more rewarding routes used for endangered species trafficking continues to be a top priority” (Photo by Freeland) than counter trafficking. ASEAN countries can reverse the status quo This report maps the evolution and trajectory by setting key goals: to create a more robust of wildlife and counter-wildlife trafficking in counter wildlife trafficking (CWT) enforcement Southeast Asia, while analyzing what has worked chain, and to introduce incentives to counter – or not – and where the region can go next. wildlife trafficking agencies. The research points to clear challenges, oppor- tunities and pathways forward. These goals are achievable if promising new opportunities are capitalized upon. A key step is to tap graft, tax and anti-money laundering Challenges inspection agencies to help police, Customs, CITES and prosecutors in countering wildlife • Systemic Corruption: complicit government trafficking. These new stakeholders are critical and corporate officers facilitate the trade. to success – traffickers are routinely violating • Lack of incentives to CWT: wildlife crime money laundering, corruption, and tax laws. pays; wildlife enforcement offers few Such non-traditional stakeholders have the rewards. authority to seize their assets, close their • Daunting law books: Officers lack easy access businesses, convert fines to rewards, and share to all laws that can help in CWT. rewards with partner agencies and civil society on a much greater scale than traditional wildlife • Limited skills and technology: Many wildlife enforcement authorities. crimes are committed online or on the phone, but only a small percentage of law To understand why we recommend the par- enforcers are proficient and tooled up in ticipation of non-traditional actors, we must digital intelligence, and the few that are may trace the story of wildlife trafficking and coun- not possess investigation skills. termeasures from origin, attempting to answer • Lack of sharing: data holders don’t share two questions: a) How did the wildlife trafficking insights for fear of leaks or losing credit. crisis evolve; and b) What has already been tried to solve it? • Police still on the sidelines: CWT cooperation Executive Summary 3 is still led by CITES authorities who are typically not fully capicitized in law enforce- ment. Opportunities • A major driver of trafficking through Southeast Asia is China. Chinese Customs is currently engaging foreign agencies and civil society organizations to collaborate on CWT. • Trafficking is facilitated by financial flows and corruption. Asian banks have shown interest in disrupting these flows by fast tracking compliance, capacity building, and proactive support for CWT investigations. • Linking existing counter-organized crime and counter-trafficking networks, instead of creating and funding new ones, will reduce expensive, low-yield meetings and increase action and impact. 4 Illicit Wildlife Trade in Southeast Asia: Evolution, Trajectory and How to Stop It SECTION I Evolution of Wildlife Trafficking in Southeast Asia and China In this section we explore factors leading to wildlife trafficking in Southeast Asia and the trajectories of key countries. Wildlife Business Trends in There is greater acceptance today that wildlife trafficking is linked to other forms of transna- Southeast Asia and China: Past, tional organized crime. The link can be summa- Present, and Future rized as follows: Wildlife trafficking businesses that have • Some smuggling specialists and corrupt exploited Southeast Asia as a source and transit government officials involved in facilitating for wildlife trafficking have deep roots in the wildlife trafficking are often involved in region. Since the 1980s (and in some cases, much facilitating trafficking in other contraband earlier), these businesses have formed well- es- • Some financiers often have a diversified tablished supply chains made up of wild animal portfolio of black market investments and plant specialists, smuggling specialists, fi- nanciers, and corrupt officials. Today’s poaching • Some smuggling specialists see the high epidemic in Asia and Africa can often be traced profits and low risk associated with traffick- to some of the same companies, individuals, and ing wildlife, and choose to get more involved families that have been active for decades. in sourcing and selling it to get a larger cut. Hence, for example, we see organizations Therefore, it is useful to understand how today’s that facilitate cross border drug trafficking traffickers evolved; how they used to operate; becoming more directly involved in dealing and how they have adapted to increased en- rhino horn.1 forcement over the years to maintain highly profitable and destructive businesses. Information on today’s major trafficking business- es operating throughout Southeast Asia and China Several themes emerge when reviewing this is dated from the 1980s to the present.2 Company history: names have changed over time, but many family names and connections remain similar. • China-based buyers dominating the market • Presence of NGOs leads to increased en- forcement actions Signs Of Poaching Spikes On • Increased enforcement makes traffickers Horizon: China In 1980’s
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