Carbon trading used as money-laundering front: experts

Jul 16, 2010
Organised crime gangs are using carbon emissions trading schemes as fronts for money-laundering, experts warned Friday. The experts who attended a meeting of the Asia Pacific Money Laundering Group (APG) said crime syndicates are resorting to new methods to hide their illegal proceeds.

Organised crime gangs are using carbon emissions trading schemes as fronts for money-laundering, experts warned Friday.

The experts who attended a meeting of the Asia Pacific Money Laundering Group (APG) said are resorting to new methods to hide their illegal proceeds.

One "issue that we've looked at closely is money laundering associated with carbon emissions trading schemes", APG executive secretary Gordon Hook told a news conference after the five-day meeting.

Hook did not elaborate on how crime syndicates were using carbon emissions trading schemes to launder money.

Emissions trading schemes place a limit on the amount of pollution which companies can produce, forcing heavy polluters to buy credits from companies that pollute less -- thereby creating financial incentives to fight global warming.

John Harrison, a security analyst at Singapore's S. Rajaratnam School of International Studies, told AFP that the carbon emissions trading market is relatively new and crime gangs are taking advantage of loopholes in regulation. "They will use new markets to try and launder their money, and particularly if these new markets are not well regulated yet," he said. "It's not surprising."

APG is an international organisation that is closely affiliated with the Paris-based Financial Action Task Force (FATF).

Hook said the region's money-laundering activities had wider, international connections.

"More and more money laundering and terrorist financing we are seeing are in reality transnational crimes so the web of international connections and international cooperation is extremely important," he said.

APG co-chairman Tony Negus, who is also the commissioner of the Australian Federal Police, said the ease of movement and communications have made the fight against organised crime more difficult.

"These days syndicates move across jurisdictions with ease and across the world with ease with increased travel and increased electronic transfers," he said.

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User comments : 4

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Shootist
1.4 / 5 (11) Jul 16, 2010
Scratch a Red, find a Green.

No surprise here that the up and coming Progressive Next Big Thing is criminal.
omatumr
1 / 5 (6) Jul 16, 2010
It must be very difficult to tell criminals from politicians and scientists that get research funds to promote the illusion that CO2 is a dangerous pollutant!

With kind regards,
Oliver K. Manuel
Former NASA Principal
Investigator for Apollo
KiwiBuzz
1 / 5 (1) Jul 18, 2010
I first heard of carbon trading at a conference in Spain 15 years ago. I got up and said 'If I was the financial adviser to the Mafia, I would tell them to get into carbon trading".

Why didn't the people promoting carbon trading wake up to this? When you trade in something that is of no use to either party, cannot be measured accurately and where both parties benefit if the quantities are fraudulently increased, fraud is inevitable.

How can they be so stupid!

freethinking
1 / 5 (4) Jul 18, 2010
We need to trust Al Gore and the environementalists. They wont lie to us, they will be open minded and civil, they won't take advantange of us, they wont hid facts, they will lead by example, they wont make a dime off of the AGW scare.
So what if a few trillion dollars are frittered away. So what if Al Gore flies in private jets and has fun while having massages. So what if the rich and powerful make money off of AGW, so what if criminals are involved in AGW.

We need carbon trading, who cares if criminals make a bit off the top. We must save Al Gores way of life.

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